TTWOTake-Two Interactive Software, Inc.

Take-Two publishes Grand Theft Auto and NBA 2K — revenue depends on a few large releases.

A game publisher's economics revolve around rare large releases: development takes years and costs hundreds of millions, while revenue arrives as a spike in the launch quarter. Between releases the company relies on in-game purchases in titles already out — steady income that has become more important than selling copies.

Hence acute sensitivity to schedule slips: delaying a major title changes the whole annual outlook. Sports franchises ship annually and provide predictability while requiring expensive league licences. Mobile grew after the Zynga acquisition. The cost of building a major title grows faster than the price of a game, so income increasingly depends on in-game sales after release. The company pays no dividend.