NEW YORK - Private Division, a subsidiary of Take-Two (NASDAQ:TTWO) Interactive Software, Inc. (NASDAQ: TTWO), in partnership with Wētā Workshop, has announced the upcoming release of "Tales of the Shire: A The Lord of The Rings Game." Scheduled for launch on March 25, 2025, the game will be available on multiple platforms including PC via Steam, Nintendo Switch™, PlayStation 5, Xbox Series X|S, and Netflix (NASDAQ:NFLX) Games.
The game invites players to immerse themselves in the tranquil life of a Hobbit in J.R.R. Tolkien's Middle-earth. Players can customize their Hobbit avatars with distinctive features and 'moods' to bring their characters to life. The narrative unfolds in the village of Bywater, where players engage with a cast of characters to help establish it as an official village in the Shire. Building relationships with other characters is central to the gameplay, often through the shared experience of cooking and eating meals together.
Cooking in the game mimics real-life culinary skills, requiring preparation and attention to detail. Players can grow their own ingredients in a customizable garden, forage in the wild, or trade with local vendors to stock their pantries. The game also offers fishing, gardening, and trading elements, allowing players to expand their living space and enhance their cooking tools.
Wētā Workshop, recognized for their work on The Lord of the Rings film trilogy, brings over 25 years of experience in the Middle-earth universe to the development of the game. Richard Taylor, Co-founder and CEO of Wētā Workshop, expressed that "Tales of the Shire" is a project born from a deep understanding and love of Middle-earth, aiming to provide a peaceful gaming experience.
Eric Correll, Vice President and Head of Marketing at Private Division, highlighted the anticipation for a game that captures the community and warmth of the Shire. The game is being developed with the creative license provided by Middle-earth Enterprises, which has licensed the literary works of The Lord of the Rings series.
"Tales of the Shire: A The Lord of the Rings Game" is yet to be rated by the ESRB. Further details and updates can be followed on the game's official social media and website. This announcement is based on a press release statement from Private Division and Wētā Workshop.
In other recent news, Take-Two Interactive Software Inc. faced a $44.9 million patent infringement verdict involving its subsidiary, Zynga (NASDAQ:ZNGA) Inc. The company plans to challenge the verdict, aiming to reduce or eliminate the damages awarded. In other developments, Take-Two has launched NBA 2K25, featuring new ProPLAY technology and modes. The company also announced the release schedule for upcoming video games, including "Borderlands 4" and "Mafia: The Old Country" for 2025, and "Sid Meier's Civilization VII" due early 2025.
Analysts from firms including Stifel, Redburn-Atlantic, and TD Cowen have maintained Buy ratings for Take-Two. Stifel raised its non-GAAP EPS forecast for fiscal year 2026 to $7.82 on net bookings of $8.381 billion. Analysts also anticipate significant financial contributions from the upcoming release of Grand Theft Auto VI. Despite a recent strike by voice actors and motion-capture artists from the Screen Actors Guild‐American Federation of Television and Radio Artists (SAG-AFTRA), analysts from Wedbush Securities expect minimal impact due to the long development cycles of major games and the presence of in-house studios. These are the recent developments for Take-Two Interactive.
InvestingPro Insights
As Take-Two Interactive Software, Inc. (NASDAQ: TTWO) gears up for the release of "Tales of the Shire: A The Lord of The Rings Game," it's essential to consider the financial context in which this launch is taking place. According to InvestingPro data, Take-Two Interactive currently boasts a market capitalization of $26.08 billion. Despite a challenging period reflected by a negative revenue growth of -2.33% over the last twelve months as of Q1 2023, the company has managed to maintain a robust gross profit margin of 55.58%.
InvestingPro Tips indicate that while Take-Two Interactive operates with a moderate level of debt, analysts have revised their earnings expectations downwards for the upcoming period. Additionally, the company's short-term obligations exceed its liquid assets, which could be a point of concern for potential investors.
In terms of valuation, the company is trading at a high EBITDA valuation multiple, which suggests that investors are expecting high future growth or there are other company-specific factors that justify this premium. Moreover, with the company not being profitable over the last twelve months and trading at a high revenue valuation multiple, investors may exercise caution.
However, there is a silver lining as analysts predict the company will be profitable this year. It's also worth noting that Take-Two Interactive has provided a high return over the last decade, a testament to its long-term performance despite recent setbacks. For investors seeking companies that reinvest earnings back into the business, it's important to note that Take-Two does not pay a dividend to shareholders.
For those looking to delve deeper into Take-Two Interactive's financial health and future prospects, InvestingPro offers additional tips on their platform.
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