Grand Theft Auto net revenues drop to pre-pandemic levels

Grand Theft Auto franchise revenues have dropped to pre-pandemic levels as the industry adjusts for an inflation market.

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The games industry is starting to stabilize after record earnings during the pandemic. Major franchises like Grand Theft Auto are making less money as consumers face rising costs of living, and major platform-holders like Sony, Nintendo, Capcom, and Konami saw losses from unfavorable foreign exchange rates.

All the biggest players are getting hit, including Grand Theft Auto. While GTA V has sold nearly 170 million copies worldwide and now accounts for 44% of total GTA game sales, total series earnings dropped to pre-pandemic levels in the latest quarter. Take-Two's Q1'23 earnings show GTA revenues made $202 million, down 26% year-over-year.

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GTA made 18.3% of Take-Two's total net revenues during the period, or about $202 million, the lowest point in 10 consecutive quarters. This isn't the complete picture of GTA earnings though.

It's important to note these values are based on net revenues instead of net bookings. The difference is net bookings are total earnings recognized during the period. Net revenues are earnings minus deferred income. Every quarter, Take-Two and other companies defer earnings from live service games across periods of time to be recognized later.

In short, net revenues may not be a complete and adequate representation of earnings throughout the period, especially for a game like GTA V with its popular monetized GTA Online mode.