|Bid||0.00 x 1000|
|Ask||0.00 x 800|
|Day's range||143.53 - 146.09|
|52-week range||100.00 - 149.28|
|Beta (5Y monthly)||0.57|
|PE ratio (TTM)||40.79|
|Earnings date||03 Aug 2020 - 07 Aug 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||149.61|
Gaming stocks like Take-Two Interactive (NASDAQ: TTWO) are flying high as the COVID-19 pandemic left millions with both the time and inclination to play video games. Industry analysts expect both Sony and Microsoft to release their next-generation game consoles during the upcoming holiday season. At the beginning of the year, few likely anticipated that a pandemic would drive an increased interest in gaming, and by extension, Take-Two stock.
2K today unveiled the full roster of cover athletes for NBA® 2K21, the next iteration of the top-rated and top-selling NBA video game simulation series of the past 19 years*. On the cover of the current-generation version of NBA 2K21 is five-time NBA All-Star and Portland Trail Blazers' standout Damian Lillard. Zion Williamson – New Orleans Pelicans forward, 2019 1st Overall Pick and consensus 2019 National College Player of the Year, lands the cover for the PlayStation®5 and Xbox Series X version. Finally, NBA legend Kobe Bryant’s lifetime achievement of basketball excellence is celebrated in the Mamba Forever Edition.
(Bloomberg) -- Dozens of women took to social media over the past few days to outline explosive allegations against prominent men in the world of video gaming and streaming, setting the stage for what could be the beginning of a MeToo reckoning for the $150 billion video game industry.Four women leveled accusations of sexual misconduct against Chris Avellone, a critically acclaimed video game writer, leading one developer to end its cooperation with him and prompting him to part ways with another game in the works. A different woman accused Omeed Dariani, the chief executive officer of Online Performers Group, a talent agency that works with many video streamers, of making an unwelcome sexual overture. Dariani resigned from his position on Sunday. Some streamers began calling for a blackout Wednesday of Amazon.com Inc.’s Twitch, the biggest game streaming platform, alleging that it turns a blind eye to misbehavior.The gaming industry has for years been criticized as unwelcoming—if not hostile—to women, but has not yet faced the MeToo movement on the same scale as Hollywood and other industries. This week’s flurry of postings was unique in terms of its volume and public nature, and it has sent ripples across the industry. Accusations began appearing on Twitter late Friday night and each new post emboldened other women to publicly share their stories. Many of the postings about the men accused of misconduct were subsequently compiled in a thread on Medium.Some of the people identified in postings have denied wrongdoing, while others have apologized for their behavior. Many were not identified by their legal names, but by the names they are known by on social media.Dariani’s accuser said the CEO proposed that she join him and his wife for a sexual encounter. Dariani didn’t respond to requests for comment but said on Twitter that while he didn’t recall the conversation, he believed his accuser, Molly Fender Ayala. When asked for comment by Bloomberg News, she said her public post expresses everything she “feels comfortable with sharing at this time. My intention was to bring light to a larger issue in the gaming industry and hopefully protect young women who are entering the space.” Twitch said it’s investigating reports of misconduct and that it “supports people coming forward.” Some of the most detailed allegations were brought against Avellone, who replied on Twitter to one of the women, Karissa, saying he “never meant any harm” to her or a friend of hers that he had dated. “If I can't do anything to apologize for it, I understand, and there's nothing more to be done.” Karissa, who spoke to Bloomberg News about her allegations, declined to give her last name for fear of harassment.Avellone, who has written for popular games such as Planescape: Torment and Fallout: New Vegas, was a founder and co-owner of the video game studio Obsidian Entertainment Inc. from 2003 until 2015. Since then, he has been a freelance designer and writer for games including Prey and Star Wars Jedi: Fallen Order. His work as a writer has been lauded by fans and critics. Industry publication Game Developer magazine listed him as one of the field’s top writers in 2009.In interviews with Bloomberg News, two women shared similar but separate stories of Avellone buying a continuous stream of drinks for them and others at an event and then making unwanted sexual advances on the two women. One, Karissa, said it happened when she met Avellone at a convention one weekend in 2012; the second said it happened at an event in 2013. A third woman, who now works at a large video game company, posted on Twitter a screen shot of sexually explicit messages she said she had received from Avellone in 2013, when she was seeking to break into the industry. A fourth wrote on Twitter that Avellone had “groped me repeatedly” at a nightclub in 2014. Avellone didn’t respond to multiple requests for comment. Feargus Urquhart, Obsidian’s chief executive officer, declined to comment on Avellone.On Friday evening, Karissa accused Avellone of getting her “blackout drunk” and trying to sleep with her, calling him “an abusive, abrasive, conniving sexual predator” in a thread of messages on Twitter. After being contacted by Bloomberg, Karissa, who asked that her last name not be printed for fear of harassment, elaborated in a phone interview. She said she met Avellone through friends in the gaming industry at a convention in 2012. At the hotel bar, Karissa said, Avellone put down his Obsidian credit card and bought multiple rounds of drinks for attendees. “They were coming so quickly,” said Karissa. “It was almost like as soon as my drink was gone, Chris already had one or two more for me. I remember refusing him, just being like, ‘I'm good, I don't need another one.’ He would literally just be like, ‘Come on, let's go to the bar, let's get you another one.’ He did that multiple times throughout the night.”Karissa said the alcohol “all hit me at once,” and that she remembers walking back to her hotel room with Avellone and two of her friends. She said she vaguely remembers Avellone trying to kiss her on the way up, and kissing her again when they arrived at the hallway outside her room. At one point, Avellone then put a hand down her pants, after which she told him to stop, Karissa said she remembers. “I told him this is not a good idea,” she said. “He stopped, then took his hand out of my pants. I think he kissed me one more time, and then left.” After that night, Karissa said she remained friendly with Avellone, and that he was “a perfect gentleman” the rest of the weekend, which “kind of pushed off what had happened in my head.” She said that their friendship ended after he had a difficult relationship with one of her other friends, and that it only occurred to her recently that something went wrong that night in 2012.“It actually didn't start to click with me until other women in the industry started coming forward with their stories, and seeing how similar they were to mine,” Karissa said, referring to the outpouring that began on Friday. She spoke up after seeing an interview with Avellone on the gaming website IGN for The Waylanders, a new video game he was helping write.One friend of Karissa, who asked not to be named because the person still works in the video game industry, confirmed to Bloomberg News that they heard the same story from Karissa about a month after it happened. Christy Dena, a video game designer, said she and Avellone had been friendly for years when they met up at a convention in Melbourne in 2013. She went out drinking with him and a few other friends, she said in an interview, and he was “continuously buying drinks” for the group. “At every event we went to, he’d just put the company card down and buy everybody drinks,” Dena said.The two of them went back to her hotel room, Dena said, and that the next thing she remembers is waking up next to him with no clothes on. “I remember going back to the room, but then I don't remember much of what happened in the room at all,” she said. “And then just waking up in the morning. He said, ‘Oh, we didn't do anything,’ but of course my clothes were off.”Dena said she kept in touch with Avellone but wasn’t interested in pursuing any sort of relationship with him. She chose to speak up after seeing Karissa’s accusations. “When Karissa put the post out, and I read things she said, I thought, ‘Oh, this is a pattern of behavior,’” Dena said. “It wasn't just me.”She has stopped drinking as a result of this and other uncomfortable incidents involving other men at video game industry events. “It's one of those things it took me a very long time to learn,” Dena said. “People are not in a consenting state when they're drunk.”In rare instances over the past three years, accusations have emerged against powerful men, including a depiction of a culture of sexism at Riot Games, Inc. and a sexual assault allegation against a former top developer at Take-Two Interactive Software Inc.’s Rockstar Games, the maker of Grand Theft Auto. (Three weeks after the article’s publication in online gaming magazine Kotaku in 2018, Riot Games said it had "much to improve" and that it would overhaul many of its practices. Rockstar Games declined to comment on the allegations raised in the story published last year and the executive accused denied the allegations.)On Saturday night, Jacqui Collins, a public relations representative for Riot Games, shared a screenshot of sexually explicit text messages from Avellone on Twitter. “This was before I was full time in the games industry, but knew I wanted a future in it and was actively working towards that,” she wrote. “Chris was one of the ‘industry greats’ I was frankly flattered to even know let alone be friendly with. So I forgave and regularly asked him career advice.”The women’s accusations have had real-world implications for Avellone. Techland Sp., a Polish game developer, said Monday on Twitter that it planned to stop working with Avellone, who was part of the narrative team for the company's next game, Dying Light 2. And Emily Grace Buck, the lead writer of The Waylanders, has since said Avellone is no longer on the project and that she would “take an extra look” at his work.Other companies have also said they plan to investigate accounts this week. Video game publisher Ubisoft Entertainment SA. said it was “deeply concerned” by sexual misconduct allegations against some of its employees, according to Gamasutra. Insomniac Games, Inc., the Sony-owned developer of the Spider-Man video games, said it was also investigating a former employee’s allegations of sexual misconduct.(Updates to add other companies making investigations into allegations in final paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Take-Two Interactive (TTWO) is likely to benefit from portfolio strength with the launch of Disintegration despite intensifying competition.
Private Division and V1 Interactive are proud to announce that Disintegration, the first title from the independent studio founded by Marcus Lehto, the co-creator of Halo, is now available digitally for $49.99 on PC, PlayStation®4, PlayStation®4 Pro, and across the Xbox One family of devices, including Xbox One X. Disintegration brings new depth to the FPS genre by adding real time strategy elements over a riveting single-player campaign. The game also features an array of options in multiplayer with the ability to select from nine unique "Crews" to pilot over three frenetic game modes.
(Bloomberg) -- AT&T Inc. is considering a sale of Warner Bros. video-game unit, a business that could fetch about $4 billion and help the company pare down its almost $200 billion in debt, CNBC reported.Activision Blizzard Inc., Electronic Arts Inc. and Take-Two Interactive Software Inc. are interested in potentially buying the division, according to CNBC, which cited unidentified people familiar with the matter. The business, known as Warner Bros. Interactive Entertainment, makes games such as Harry Potter: Wizards Unite and Mortal Kombat 11. A deal isn’t imminent, the news outlet said.AT&T declined to comment, as did Electronic Arts and Take-Two. Activision didn’t immediately respond to a request for comment.The Dallas-based phone giant acquired the video-game maker in its $85 billion purchase of Time Warner Inc. in 2018. That deal, and an earlier acquisition of DirecTV, ballooned AT&T’s debt and the company has been looking to ways to cut costs and unload assets. Incoming Chief Executive Officer John Stankey will continue those efforts when he takes the helm on July 1.One complication is the gaming business bases many of its titles on Warner Bros.’s movies and shows, such as Harry Potter and the Lego Movie. A sale may include licensing the properties to a buyer, according to CNBC.(Updates with company responses in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Sony Corp. unveiled two versions of its upcoming PlayStation 5 game console and an array of new games from the virtual stage Thursday, showcasing its next-generation lineup for the first time ahead of a holiday season showdown against Microsoft Corp.’s Xbox.A new Spider-Man game will be ready for the holidays, alongside the release of the black-and-white home console. Sony will also have a new Gran Turismo racing game, as well as an enhanced version of Take-Two Interactive Software Inc.’s bestselling Grand Theft Auto V for the PlayStation 5 next year.The second variant of the PS5, dubbed the Digital Edition, will eschew the Blu-ray disc drive and offer downloads as the only way to acquire new games. This move could hasten the transition to digital downloads and cut out retailers like Amazon.com Inc., GameStop Corp. and Walmart Inc. The PS5 Digital Edition has a sleeker design and is expected to be cheaper than the standard model, though Sony did not disclose pricing information.Shares of the Japanese entertainment giant fell as much as 3.9% in early Tokyo trading Friday, its biggest intraday fall in more than two months.“It looks like Sony is saying the PS5’s theme color is white,” said Hideki Yasuda, an analyst with Ace Research Institute. “I can’t think of many white, round-edged game consoles that have done well in the past, so I think Sony is taking on a challenge with that design direction.”Sony showed an array of new games from various high-profile franchises, including Resident Evil 8, a remake of the action game Demon’s Souls and a sequel to the popular PlayStation 4 game Horizon Zero Dawn.Expectations are high for the PlayStation 5. Sony’s current system has dominated the video game market for the last seven years, selling more than 110 million units and overshadowing Microsoft’s efforts with the Xbox. Both companies began talking publicly about their next generation of consoles last year. Sony has promised technical improvements that would enable sharper graphics, larger game worlds and reduced load times.Read more: Sony Slides After Warning of 30% Profit Drop in Fiscal YearThe coronavirus pandemic has complicated what is normally a carefully choreographed process for introducing a new game system. Sony had planned to deliver a lecture on the PlayStation 5’s technical capabilities during the Game Developers Conference in March. When that event was called off, the Japanese hardware maker instead streamed an hourlong video presentation hosted by the PlayStation’s lead architect, Mark Cerny.The Electronic Entertainment Expo is typically the premier launch event for the biggest game releases. The conference, known as E3, had been set to take place this week in Los Angeles but was canceled due to the virus. Sony had not planned to participate at E3 but arranged a live streaming event on June 4. That was postponed by a week in the wake of global protests against racial injustice that started in the U.S.On Thursday, Sony introduced several games from independent or smaller developers, in addition to big-budget titles. Highlights included Bugsnax, a cartoon game set on an island full of talking fruits and animals, and an adventure game called Kena: Bridge of Spirits. The new version of Grand Theft Auto Online will be free exclusively to PlayStation 5 owners for three months, said Take-Two, the game’s publisher. It debuts in the second half of 2021.The wide variety of games on display could help broaden the PlayStation 5’s appeal and attract younger audiences like those typically captured by Nintendo Co. “Sony showed us a lot of cartoony games, a shift from the PS4 launch when the reveal was dominated by photorealistic games,” said Ace Research Institute’s Yasuda.Sony will face off against Microsoft this holiday season when they each plan to release new consoles. Sony has been struggling to keep costs down for the PlayStation 5, but it hasn’t yet said what the new product will sell for. Partly due to a high initial price tag, Sony is limiting production of the console for the launch, people familiar with the matter have said.Piers Harding-Rolls, an analyst at Ampere Analysis, anticipates the new consoles will sell for $450 to $499. “Higher pricing is actually predicted to have a minimal impact on adoption at launch,” he said. “Within a certain range — less than $500 — price is not a major factor.” Sony will likely be able to reduce the price of the model without the Blu-ray disc capability, said Serkan Toto, a games consultant who runs a company called Kantan Games Inc.(Updates with market reaction and PS4 sales chart)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
CEO Strauss Zelnick pointed to a recent study by Activate, a media consulting firm, that shows time spent with interactive entertainment could grow faster than time on linear forms of entertainment, such as movies and TV, in a post-COVID-19 world. Last quarter, Take-Two reported that recurrent consumer spending (or in-game spending) made up 61% of net bookings, growing an impressive 47% year over year. This was driven by outperformance in Grand Theft Auto Online, NBA 2K20, Red Dead Online, Borderlands 3, and Social Point's mobile games, including Monster Legends and Dragon City.
The fiscal 2020 fourth-quarter earnings report that Take-Two Interactive (NASDAQ: TTWO) released on May 20 showed strong momentum building during the early weeks of the COVID-19 shelter-in-place period. One reason is that investors are used to them reporting lumpy results from year to year, given that they operate in a business where revenue cycles are often tied to the timing of big releases.
The COVID-19 pandemic and the resulting work-from-home trend have accelerated the growth of the video game industry in the last few months. Companies are seeing more players join the gaming fold, and with advancements in graphics technology on the horizon with the new consoles coming this fall from Sony and Microsoft, now is a good time to consider adding a few top video game stocks to your nest egg. CEO Bobby Kotick has guided Activision Blizzard (NASDAQ: ATVI) to market-beating returns since taking over in the early 1990s.
(Bloomberg) -- One Friday evening last December, employees of game designer Star Theory Games each received the same unusual recruitment message over LinkedIn. It struck them as bizarre for two reasons. One, it came from an executive producer at the publishing company funding their next video game. Two, it said the game—in the works for the previous two years—was being pulled from their studio.“This was an incredibly difficult decision for us to make, but it became necessary when we felt business circumstances might compromise the development, execution and integrity of the game,” Michael Cook, an executive producer at Private Division, a publishing label within Take-Two Interactive Software Inc., wrote in the message, which was reviewed by Bloomberg. “To that end, we encourage you to apply for a position with us.”It was strange and disconcerting news to Star Theory’s employees. Normally, an announcement like this would be delivered in a companywide meeting or an email from Star Theory’s leadership team. The contract with Take-Two was the studio’s only source of revenue at the time. Without it, the independent studio was in serious trouble. The LinkedIn message went on to say Take-Two was setting up a new studio to keep working on the same game Star Theory had been developing, a sequel to the cult classic Kerbal Space Program. Take-Two was looking to hire all of Star Theory’s development staff to make that happen. “We are offering a compensation package that includes a cash sign-on bonus, an excellent salary, bonus eligibility and other benefits,” Cook wrote.When employees returned to the office on Monday, Star Theory founders Bob Berry and Jonathan Mavor convened an all-hands meeting. The two men had been in discussions about selling their company to Take-Two but were dissatisfied with the terms, they explained. The game’s cancellation was a shock, but the founders assured staff that Star Theory still had money in the bank and could try to sign other deals, according to five people who attended the meeting and asked not to be identified, citing the risk of litigation. Berry and Mavor encouraged employees to stick together and stay at the company.The next few weeks were chaos, employees said. Take-Two hired more than a third of Star Theory’s staff, including the studio head and creative director. By March, as the coronavirus pandemic choked the global economy, any hope of saving the business appeared to be lost, and Star Theory closed its doors.Even by the cutthroat standards of the video game business, Take-Two’s tactics were extreme. The company behind the Grand Theft Auto franchise is one of America’s largest publishers, with a market value of $15 billion. The stock is up 10% this year and trading near an all-time high, thanks to increased demand from people stuck at home. Take-Two cultivated a leading position in publishing through a mix of big-budget games developed in-house and by a tightknit group of studio partners. Publishers like Take-Two control a project’s financing, marketing and distribution, giving them a great deal of leverage over most developers they sign.The swift demise of Star Theory and the events of its three final months, which have not been previously reported, highlight the frailty of those business relationships and the power dynamics within the industry.Brian Roundy, a spokesman for Private Division, said the company contacted “every member of the development team” at Star Theory with an invitation to join the new studio, called Intercept Games. “More than half of the team is now at Intercept Games,” Roundy wrote. “In doing so, we are empowering our deeply passionate and talented team to focus on quality, and we are thrilled with the progress that they are making on the game.” Star Theory’s Berry and Mavor didn’t respond to requests for comment.Patrick Meade, a senior engineer at Star Theory, said he turned down the job offer from Take-Two. He declined to discuss the events in detail but said he didn’t want to work for a big company where he wouldn’t have the same degree of influence or financial benefits if the game were a hit. “I was at a small studio, where the work I did had a massive impact on our success,” Meade said. “When I see myself at any large corporation, that is fundamentally not true.”Berry and Mavor started their game studio in 2008 in Bellevue, Washington. They called it Uber Entertainment, later changing the name to Star Theory following the rise of a certain ride-hailing company. Early hits included Monday Night Combat, a cartoonish shooter that sold more than 300,000 copies, and Planetary Annihilation, a strategy game that raised more than $2 million on Kickstarter.In 2017, Star Theory began working with Take-Two on its most high-profile project. Take-Two had purchased the rights to a popular flight simulation game developed by another independent studio and contracted Star Theory to make a sequel. The original game, Kerbal Space Program, allowed players to construct and launch rockets using realistic physics. It sold more than 2 million copies, was critically acclaimed and even led to partnerships with NASA and the European Space Agency. Gamers, like moviegoers, tend to flock to brands they know, so working on a well-liked franchise is a chance for a studio to increase sales and gain exposure.The view inside Star Theory was that development on Kerbal Space Program 2 was proceeding smoothly, according to the people who worked on the project. A preview of the game on display at the Penny Arcade Expo in September left fans impressed, and Take-Two’s public enthusiasm for the title was rising, said Doug Creutz, an analyst at Cowen & Co.Late last year, Take-Two agreed to extend Star Theory’s development deadline by six months to add new content to the game. That kicked off a new round of contract negotiations. All seemed well, said the people who worked on the game, until Dec. 6, when the project was pulled and the LinkedIn messages went out. At the hastily called staff meeting a few days later, the founders said in addition to sale talks, they had been trying to clarify royalty terms, which were unclear in their contract, they told employees.Three of Star Theory’s leaders—Jeremy Ables, the studio chief; Nate Simpson, the creative director; and Nate Robinson, the lead producer—departed for Take-Two’s new studio immediately. Other staff mulled whether to go, torn between leaving and abandoning their colleagues or staying and risking their livelihoods, they said. One employee, who asked not to be identified, said they felt a mix of confusion and fury, adding that they’d never been put in this type of position.The attempt at hiring away the development team came with business risks, both for the project and for Take-Two if word got out, said Creutz. “They've got a game they've got high hopes for, and they have now potentially injected an enormous amount of disruption into the development process,” he said. “You could be taking a reputational risk as well, if you want other studios to work with you and it appears that you play this kind of move when things don't go the way you want.”About a dozen of Star Theory’s 30 employees wound up leaving for Take-Two’s new studio, while the rest stuck around in an attempt to save the business, they said. By January, the remaining team had a plan in place: Each employee would spend the next two months brainstorming new ideas and building prototypes. Then they would pitch the best ones to publishers at the Game Developers Conference in mid-March in the hope of securing a new deal, the five workers said. The annual conference is always full of publishers looking to make investments in indie studios with proven track records.Then came the pandemic. The conference was canceled, leaving Star Theory with nowhere to take its pitches. Publishers, sensing an economic downturn, tightened their spending. On March 4, Star Theory shut down. Each worker received a month’s pay and two months of health insurance, said three former employees. A few joined their former colleagues at Take-Two’s Intercept Games.Kerbal Space Program 2 remains in development at Intercept. The game had been set to come out this year, but the company said last month it was delaying the release until the fall of 2021. “With everything going on in the world today due to the Covid-19 outbreak,” the company said, “we’re facing many unique challenges.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Zacks Analyst Blog Highlights: BJ's Wholesale Club, Perdoceo Education, Take-Two Interactive Software, Duluth and Vista Outdoor
One growth stock that could double your money over the next five years is the low-code software provider Appian (NASDAQ: APPN). Two other promising stocks are leaders in the growing video game industry, Take-Two Interactive (NASDAQ: TTWO) and Glu Mobile (NASDAQ: GLUU). Investors should consider buying shares of Appian.
Federal aid, extra jobless benefits, contributions to salaries paid by small businesses, a low interest rate environment and gradual reopening of the economy lifted consumers' spirits.
Take-Two Interactive (NASDAQ: TTWO) has a new fan on Wall Street. The video game giant's shares were upgraded on Tuesday and assigned a $170 price target by Gerrick Johnson, an analyst at BMO Capital Markets. Johnson highlighted Take-Two's widening content portfolio, which includes sports franchises like the surging NBA 2K brand, as helping the company's growth.
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of...
Take-Two Interactive (NASDAQ: TTWO) recently announced sales growth that blew past management's outlook. The video game giant's NBA 2K20, Grand Theft Auto, and Borderland brands were just a few of the standouts that allowed net bookings to jump 49% in the fiscal 2020 fourth quarter compared to a 21% increase for rival Activision Blizzard.
As the game maker delivered a strong quarter, management dropped a bomb by disclosing a deep pipeline of 93 new releases planned for the next five years.
(Bloomberg Opinion) -- The work-from-home movement is gaining steam in Silicon Valley as a flurry of companies – big and small – are embracing remote-working policies beyond the pandemic. But even as some executives extol its virtues, other tech leaders aren’t so sure, opening a growing divide inside the industry over the future of work. It’s a worthy debate.On Thursday, Facebook Inc. CEO Mark Zuckerberg announced his company will start allowing some existing employees to work from home permanently. He said Facebook will also “aggressively open up remote hiring” for engineering talent in areas it doesn’t have an office, saying as much as 50% of the company’s employees could eventually work remotely within 10 years. In similar fashion, Shopify Inc. CEO Tobi Lutke said his e-commerce software company will allow its employees to work from home indefinitely, adding he expects that most of his staff will work remotely going forward. The days of “office centricity is over,” the executive posted on social media. The two companies join Twitter Inc., which said last week it will let employees work from home as standard practice as well.Not everyone in technology is on board. Take-Two Interactive Software Inc. CEO Strauss Zelnick said on an investor call this week that he believes sustained strong productivity will get more difficult the longer people are forced to work from home, adding that “there is no substitute for in-person collaboration and connection.” That follows comments from Microsoft Corp. CEO Satya Nadella, who expressed concern in an interview with the New York Times last week that early positive remote-work productivity metrics may mask underlying deficiencies, in terms of managing and mentoring employees. He also raised worries about potential burnout and mental-health issues. “Maybe we are burning some of the social capital we built up in this phase where we are all working remote. What’s the measure for that?,” he asked.There’s something to be said for this pushback. Sure, there are many pluses to offering off-site work flexibility – including better employee retention and the ability to hire from a more diverse talent base in other geographies – but corporations should realize the work-from-home trend isn’t a panacea. In fact, there are significant drawbacks and challenges that shouldn’t be overlooked. As Zelnick pointed out, there are unquantifiable benefits derived from being in the same physical location. Scheduled videoconferencing meetings don’t engender the same spontaneous creativity compared to the many back-and-forth brief conversations during a typical day at an office. And nothing beats face-to-face interactions for building the relationships and trust required to persuade your colleagues on big decisions.It’s notable that even as Facebook projects confidence and forward-looking thought leadership in its charge toward its new work-from-home culture, it is implementing the change slowly. Zuckerberg said only the company’s senior engineers with strong performance reviews will be initially allowed to apply for remote-work flexibility, adding it will be a measured transition before extending the policy to non-engineers.To be frank, it wouldn’t surprise me to see many of these companies slow down their transitions to remote working. After all, the world is only a few months into this massive remote-work experiment. The initial productivity benefits may dissipate and significant negative consequences may well appear over time. Best not to rush into any drastic decisions.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. He previously covered technology for Barron's, following an earlier career as an equity analyst.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Take Two's (TTWO) fourth-quarter fiscal 2020 results reflect strength in the popular franchises and heightened user engagement levels attributed to coronavirus-led lockdown.
Take-Two (TTWO) delivered earnings and revenue surprises of 88.64% and 26.34%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?