I’ll try to keep this as short as I can. I am new to the stock market and have been investing my money into index funds while I take some time to better learn how the market works and would like to start slowly investing into individual stocks as well. I decided to start with Take-Two Interactive Software, a video game holding company who is a parent company of Rockstar Games, a video game publisher known for Grand Theft Auto and other popular games alike. I chose this because I personally think and hear a lot of people say that it’s good to start investing in areas that you know, and I was involved so much with the GTA 5 community since I was 12 when it came out, even still to this day with some of the little free time I have playing on community made servers on the game. Now, the question that I come up with as an adult, not just saying out of bias about the game I loved since I was a kid. How could TTWO stock possibly go down, with GTA 6 being officially announced by Rockstar and a trailer coming out to the public in a few weeks. For some context as I assume most here are not gamers, GTA 5 is the 2nd best selling video game of all time. Rockstar games are one of the top video game publishers of all time and the last game they released (red dead redemption 2 in 2018) has in 5 years, taken the spot of 8th best selling game of all time. GTA 6 has been in development for 8-9 years and will probably have been worked on for a decade before it’s release. This game has easy potential to be the #1 best selling game of all time and has been in development by one of the best publishers for almost a decade so I want to know, from everyone’s perspective, what factors could cause the stock in their parent company to go down ? I understand many investors who aren’t gamers will answer that there is no telling that the game won’t have flaws and will flop etc, but from the point of view from someone who has been a part of the community for over a decade and knows quite a bit about video games as it was a hobby in my younger life, I can say the odds of this game being a flop and having bad bugs are realistically so low, based upon the companies history and time/money invested into this game. It has so much hype around it that even in the event of a flop, will still sell record breaking sales at release, just wouldn’t generate long-term income via in game purchases etc. Thanks in advance to anyone who puts in their two cents.
