Take Two Interactive (TTWO) Still Recession Proof?

Last week, Rockstar Games, a division of Take Two Interactive Software (Nasdaq: TTWO), released its first add-on to its blockbuster Vice City franchise. The interesting thing about this addition is that it’s can be purchased only through Microsoft’s (Nasdaq: MSFT) Xbox 360 live marketplace.

For those of you who missed the subtleties of this, lets break it down. One, they’re not spending the money on rebuilding a fictional Liberty City, but simply tweaking and adding updates to it. Secondly, the price on this update is closer to $20. Rather than the $50 charged for the Grand Theft Auto: Vice City IV Game.

Finally, this move to distribute the game through the Xbox Live format, basically online but accessed through the Xbox 360 consol, has to be a success for the teams at both Rockstar and Microsoft. This manner of distribution is about as ideal as they can get from a cost standpoint, which reminds us of some boardroom antics from last year…

Take Two had been fighting off a hostile takeover from Electronic Arts (Nasdaq: ERTS) for some time and has needed to give investors the proof they needed that an independent TTWO was in their best interests. EA’s central argument was that they could distribute games better. This kind of distribution channel pretty much negates that entire argument.

The last thing is we want to keep an eye out for how well this update does. In our current economic slump, even the game-industry once thought recession-proof, is seeing lower numbers. If this rollout works for Take Two, it will give new legs to their recession-resistance.

Companies mentioned in this article: TTWO, MSFT and ERTS.

• Video Game Slump Nothing New
• Microsoft Down But Not Out
• Microsoft (Nasdaq: MSFT): Stock of the Day

Sign Up now and receive this Free report: Collect 122% in the Next 12 Months From Gold's Surge.

The Single Best Investment for 2009

Forget another stimulus package. Or retreating into "safe-havens" like cash and gold. All you need in 2009 is a small exposure to the "secret" White Cap Index.

It's up as much as 171% straight through Wall Street's meltdown. And one of the latest stocks to be added - an Internet-related venture capital company - is up over 100% since its inclusion into the Index.

Just weeks from now, we'll add another White Cap stock to this market-trouncing index. To get a sneak peek, click here for full details.

Comments

Check out our selection of daily Investment Research:

We Respect Your Privacy

---

What is Investment U?

Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth.

---

Recent Articles

Platinum Services

The Oxford Club is an exclusive, global network of investors, who collectively participate in the pursuit of prosperity and wealth. The Club is renowned for its market-beating, tried-and-true investment principles.

The White Cap Report exclusively identifies companies, White Caps, which - by being among the earliest to gain traction - have secured dominant positions within untapped, billion-dollar markets.

With an elite trading team at the helm, the Xcelerated Profits Report shows any investor how to "invest like a pro," using high-level, yet easy-to-execute strategies that "xcelerate" profits while minimizing risk.

---