Take-Two KGDI October 2006
Pearl Research,, -, Pearl Research,, (Stakeholder) Pearl Research,, Pearl Research,,,, :,,,,, Pearl Research : 415-566-8509 : 1-800-614-1508 101 Email: help@pearlresearchcom http://wwwpearlresearchcom
I Take-Two Interactive Software, Inc, (Take 2 Interactive) (Rockstar Games) (Grand Theft Auto) 2(PlayStation 2), PSP (PlayStation Portable), Xbox Xbox 360, (Nintendo GameCube) (Nintendo Game Boy Advance) PC 100%, 2K 2K (2K Sports) (Global Star Software) (Jack of All Games ) (Joytech), NASDAQ TTWO (Interview magazine), 1991 5 1993 8 Stewart, Tabori & Chang (Chief Operating Officer) 21 150 1993 PriceWaterhouseCoopers PWC Take-Two Profile 1
16 35 (Wayne's World) (True Lies) (Tia Carrere) (The Daedalus Encounter) (Hell: A Cyberpunk Thriller) 1994 12 6 300,000 (Ripper) 250 625,000,, 11: (Daedalus Encounter) 1995 3, 4 Take-Two Profile 2
10,000 Acclaim Distribution Inc (Acclaim Entertainment) 1996 2, (Ripper) (Hell: A Cyberpunk Thriller) (Star Crusader) 3 III(JetFighter III) Mission Studios Corporation 175 1996 10 III 1997 1997 7 (GameTek) Take-Two Interactive Software Europe Limited (Dark Colony), (The Quivering), (The Reap) (Alternative Reality Technologies, Inc) 1998 3 1998 3, Bertlesmann AG BMG (BMG Interactive) 1420,, 12 PC (Grant Theft Auto) 18 150 Take-Two Profile 3
12: PC 1998 8, (Jack of All Games Inc) 1998 19100 710 1997 360 1999 DMA Design Holdings Limited PC ( ) PLC 2000 2005 2000 3 8700 2005 12 2001 III 3D 2002 7 9400 Take-Two Profile 4
2006 Take-Two Profile 5
(Paul Eibeler), CEO(Chief Executive Officer), 2004 4 2005 1 2000 7 2003 6 2000 11 2003 2 Xbox 1998 1999 2003 7 8 11 2004 10 7 Impact, Inc Dwango North America Corp 1978 H (Karl H Winters) CFO(Chief Financial Officer) 2002 2 (United Auto Group) CFO 18, (Coopers & Lybrand) 10 2 Take-Two Profile 6
(Barry Rutcofsky) EVP(Executive Vice President) 2001 5 1999 8 2000 7 2000 7 2001 5 1983 (Cindi Buckwalter) EVP(Executive Vice President) 2003 5 2001 2, (Whale Securities) E- Take-Two Profile 7
Net Revenues 1,250,000 1,050,000 850,000 $, thousands 650,000 450,000 250,000 50,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 13: 1997 2005 % Change Annual Net Revenues 100% 90% 80% 70% 60% % 50% 40% 30% 20% 10% 0% 1998 1999 2000 2001 2002 2003 2004 2005 14: % 1998 2005 Take-Two Profile 8
Net Earnings 180,000 160,000 140,000 120,000 $, thousands 100,000 80,000 60,000 40,000 20,000 0-20,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 15: 1997 2005 Revenue Mix by Segment 100% 90% 80% % of Total Revenue 70% 60% 50% 40% 30% Distribution Publishing 20% 10% 0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year 16: 1997 2005 Take-Two Profile 9
Revenue Mix by Geography 100% 80% % of Total Revenues 60% 40% International North America 20% 0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year 17: 1997 2005 International Revenues 351,000 301,000 Revenues ($, thousands) 251,000 201,000 151,000 101,000 51,000 1,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year 18: 1997 2005 Take-Two Profile 10
, / III 2006 NBA 2K6 NHL 2K6 / : : 3D / 4x4 Evo 2 / II IV III, :, : :, : DUB Edition, II, 2:, :, : MLB 2K6 NHL NHL 2K6, ESPN NHL 2K5 Take-Two Profile 11
II 2005 10 31 1 720 10 5 23 1980 1990 CASH & CASH EQUIVALENTS $1072 million 10 500 1000 1500 2000 MARKET CAPITALIZATION $105 billion 1998 5000 2K 2006 E3 Take-Two Profile 12
IGN, 15 E3 2K 6000, 4000 IP 8000 2005 6 5 2006 6 1 NBA 2K7 NHL 2K7 2005 10 12 1,140 1000 3/1 20 2007 50% CEO Take-Two Profile 13
, 700 54% : 2003 10 600 2K 2005 1 2K 2005 6500 2006 6 1 2K 20 EA 2006 1 6 IGNcom 200,000 63% 2K EA Gamestatscom NBA 2K6 24 10 79 EA NBA Live 2006 28 10 65 WPT(World Poker Tour), CN(Cartoon Network) MLB(Major League Baseball) Take-Two Profile 14
WPT 2K 2006 3 200 2K WPT 2004 2 6 11 (CN) 1992 10,, :,, 2005 1 31 MLB, MLB MLDAM,, MLB, 2K Take-Two Profile 15
2005 11 PC, 2K : PC PC 2005, : VIDEOGAME 18 23: Take-Two Profile 16
1998 20,000 Distribution Revenues 350,000 300,000 Revenues ($, thousands) 250,000 200,000 150,000 100,000 50,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year 24: 1997 2005 EA 2005 Take-Two Profile 17
2006 5 2K 30 2006 8 2K 2K 2K 2006 PC IV ( ),,,, ( ), ( ), ( ), ( ),, ( ) ( ),, ( ),,,,, ( ),,,,,, ( ),, Take-Two Profile 18
III 1998 1996 1300 1999 3 500 1998 2000 2 22 1998 4 BMG 1998, 2000 5, 2002, 2005 1 2K 31: 3 2006 1, 3 Take-Two Profile 19
1 2500 2004 47%, 2005 29% 16,, 5000 MLB Take-Two Profile 20
, 33:,,,,, 5 2005 407% 149% ( ), ( ), ( ), ( ) Take-Two Profile 21
2005 1 5770 Take-Two Profile 22
IV 2001 2004 4 CEO 3 CFO 2001, 7 3 750 2006 1, A III Take-Two Profile 23
2003, 2004, 2005 386%, 319%, 349% 4-5% 2005 7 2005 35%, EA 2003, 2004, 2005 812%, 931%, 785% Take-Two Profile 24
2005 7 SEC 2005 7 ( ) PC AO M ESRB(Entertainment Software Rating Board) ESRB AO AO 1994 20 ESRB Take-Two Profile 25
2005 40% AO ESRB : AO M 2006 6 5 2005 407% 149%, 2005 42: 25% Take-Two Profile 26
New Video Game Sales Walmart 25% Other Retailers 50% GameStop 25% 43: W 50% 2006 2006 2006 2 2 6500 135% 20-25% 40% 30% 20% 40% 25%,,, 25,000 FTC ESRB 6 Take-Two Profile 27
2007 2007 4 Take-Two Profile 28
V 1 Xbox 360 2007 IV 7 2K Take-Two Profile 29
EA 6000 4000 IP 8000 NBA, NHL, NCAA, MLB 2005 1, 2K 2K MLB MLBPA 2006 MLB 30,, MLB Slugfest Loaded 2004(PS2, Xbox) EA 2004 GBA PS2 MLB Take-Two Profile 30
, EA, THQ, 16 ESA(Entertainment Software Association) 2005 37 53% 10 2005 ESA 75% PC : : 2004 10 : CEO " : 1990 90 FM, Take-Two Profile 31
52: 100% 71 IPO,, 3 2006 6 200 PC CFO 2006 2 " 3 Take-Two Profile 32
PS2 PSP : PS2 Xbox Xbox 360 Take 2 Interactive 2005 2004 2003 2002 2001 PlayStation 2 472% 767% 619% 841% 713% Xbox 316% 183% 250% 60% 80% PlayStation Portable 139% 00% 00% 00% 00% Game Boy Advance 30% 26% 36% 25% 05% Xbox 360 25% 00% 00% 00% 00% GameCube 15% 09% 24% 08% 00% 03% 16% 72% 66% 202% 53: PS2,, Xbox Live "Xbox Live Xbox Live " 2002 11 Xbox Live 18 2006 54: 2006 6 Xbox Live 1800 Take-Two Profile 33
6 Xbox Live 1800 2K Xbox Live " Xbox Live 2006 10,, III, IV,! PC 2006 1 2K NCAA College Hoops 2006 2 CFO " Take-Two Profile 34
VI : :,, :,, Take-Two Profile 35
61: : III :,,,,,, : : L,,,,, 90 Take-Two Profile 36
III " III III Take-Two Profile 37
2006 10 2001 III 1upcom 62: 2005 5 Take-Two Profile 38
1999 2006 10 Take-Two Profile 39
VII Lessons for Other Companies ESRB( ) 71: : PS2 PS3 Take-Two Profile 40
: 2005 72: PS3 PS2 SEC, Take-Two Profile 41
, III 2006 10 Take-Two Profile 42
Figure 73:, Xbox Live Take-Two Profile 43