The Most Important Detail Investors Missed in Take-Two's Earnings Report
Leading game companies reported a significant increase in engagement during the most recent quarter with people staying home amid the COVID-19 pandemic. Take-Two Interactive (NASDAQ: TTWO) called its engagement levels "exceptional" as GAAP revenue and earnings climbed 16% and 21%, respectively, for fiscal 2020.
However, Take-Two is not forecasting any continued strength in player engagement beyond the fiscal first quarter, since no one knows how long people will keep playing video games at these elevated levels once the economy fully reopens.
One analyst asked management during the May 20 conference call about the recent engagement trend and how sustainable it is. CEO Strauss Zelnick pointed to a recent study by Activate, a media consulting firm, that shows time spent with interactive entertainment could grow faster than time on linear forms of entertainment, such as movies and TV, in a post-COVID-19 world.
Source Fool.com
