Erikona
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GTA VI predicted to generate $3 billion in revenue. (0:15) Madison Square Garden called a best idea for ’25. (2:39) Get Apple TV for free. (3:48)
The following is an abridged transcript:
Our top story so far. The video game sector could be dominated next year by the release of Grand Theft Auto 6 by Take-Two Interactive (NASDAQ:TTWO) and Rockstar Games. Consumer interest is reported to be sky-high for the latest GTA, which is expected to be released in the fall of 2025.
Analysts predict GTA 6 could sell 38 million copies in its first 12 months. At a price point of $69.99 per copy, that would generate about $2.7 billion in sales. Including potential online mode revenues, GTA 6’s total first-year revenue could easily approach $3 billion.
CEO Strauss Zlenick told the FT: “I never claim victory before it occurs.”
Grand Theft Auto VI, which Take-Two Interactive plans to release on Sony’s (SONY) PlayStation and Microsoft’s (MSFT) Xbox consoles, is forecast to top $1 billion in pre-orders before it even becomes available.
Across the videogame industry, many publishers are hesitant to commit to fall 2025 release dates for their own games, fearing competition with GTA 6. While Rockstar and Take-Two have officially announced a fall 2025 release window for GTA 6, there is speculation about a potential delay. Some industry analysts believe Rockstar may push the release into 2026, given their history of delays and the massive scale of the project.
On Wall Street, Bank of America analyst Omar Dessouky thinks a positive development for TTWO investors and GTA 6 fans would be more information about the mega-title via a full trailer and potentially more marketing communications about the game.
Take-Two Interactive has averaged a 30% gain in the year ahead of a GTA release. Shares are up about 20% since the start of September.
In today’s trading, hopes that the last two days of the traditional Santa Rally could bring some cheer to bulls are fading. The move is decidedly risk-off to kick off the week, with equities down and bonds up.
Also in trading news, stock markets announced they will be closed on Thursday, January 9, for the National Day of Mourning for President Jimmy Carter.
On the economic front. December’s Chicago PMI fell unexpectedly to 36.9 from 40.2. The forecast was for a rise to 42.7.
Ande November Pending Home Sales rose +2.2% M/M to 79, topping the +0.9% consensus and accelerating from 1.8% growth in October (revised from +2.0%).
Among active stocks today, Guggenheim called Madison Square Garden Entertainment (MSGE) best idea for 2025.
Analyst Curry Baker said the company, which owns venues such as Madison Square Garden and Radio City Music Hall, should be able to generate close to double-digit growth in its adjusted operating income, despite a number of one-time headwinds. Baker has a Buy rating and $48 price target on the stock, implying some 40% upside from current levels.
Nvidia (NVDA) said it has closed its acquisition of Israeli startup Run:ai.
Nvidia announced in April its deal to acquire Run:ai, which makes AI chips more efficient and can reduce the number of GPUs needed to complete tasks. Terms of the deal were never disclosed, but previous media reports stated that Nvidia paid roughly $700 million.
And Huawei Technologies has reduced the prices of several high-end devices, including smartphones, by up to 3,000 yuan (about $411) over the weekend on a Chinese e-commerce platform. That’s according to Reuters, which cited a post on the company’s Weibo social media account.
In a JD.com (JD) “Super Brand Day” promotion that began on Saturday evening and ran until midnight on Sunday, Huawei offered discounts on its mobile phones, headphones, watches, and tablets.
In other news of note, Apple (AAPL) said its Apple TV streaming service will be free over the coming weekend.
Apple TV is part of the company’s Services division, which reached a “new all-time high” in the fiscal fourth quarter ended September. The Services unit’s revenue jumped about 11.9% year-over-year to $24.97 billion in Q4. But it was below the $25.27 billion analysts were expecting.
The Services unit also includes the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+.
And in the Wall Street Research Corner, influential strategist Torsten Slok has the odds for global market risks in 2025.
Slok, the chief economist at Apollo, which has more than $500 billion in assets under management, gives us a top 12 list for next year.
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Tariffs coming: 90%
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Nvidia (NVDA) earnings disappoint inflated expectations: 90%
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U.S. economy re-accelerates and animal spirits come back: 85%
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M&A/IPO activity rebounds: 75%
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Fed stops talking about r*: 70%
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U.S. inflation accelerates in Q1, driven by a strong economy, tariffs, restrictions on immigration, and seasonal factors: 40%
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Fed raises rates in 2025: 40%
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U.S. 10-year interest rates (US10Y) (TBT) (TLT) move above 5% before midyear: 40%
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Probability of a recession in Germany: 40%
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China outright recession in 2025: 33%
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Fiscal crisis in the U.S.: 10%
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Probability of a recession in the U.S.: 0%
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.