Take-Two buys Dynamixyz: 3 things to know

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Top video game companies recently acquired other game studios to strengthen their pipelines and add talented game developers to their ranks. But Take-Two Interactive (NASDAQ: TTWO) recently took a different path by acquiring French company Dynamixyz, a leader in facial animation services.

Financial details were not disclosed, which usually means the size of the deal is not important to the acquiring company, but the addition of a team of PhDs who spend their time working on the analysis facial, motion capture and computer graphics could have big implications for the future of Take-Two’s video game development. Here are three things to know.

Image source: Getty Images.

1. Graphics sell games

The video game industry has grown steadily since the boom in electronic games in the 1970s. One of the fundamental drivers of growth has been the improvement of visual graphics technology. Rockstar Games from Take-Two, the creator of Grand Theft Auto V and Red Dead Remption 2, excelled at creating experiences with stunning visuals. Both titles have sold tens of millions of copies in recent years, no doubt thanks to engaging gameplay and superb animation work.

Dynamixyz worked on Red Dead Redemption 2 for Rockstar Games and has also participated in Take-Two titles from his 2K label, such as NBA 2K21, who is known to develop very precise facial animations for real NBA players. In addition, Dynamixyz previously contributed to the Netflix animated series Love, Death & Robots, as good as Avengers: Endgame, the hit Marvel movie.

As CEO Strauss Zelnick said during Take-Two’s fiscal fourth quarter earnings call, “What moves the dial in our business is incredible creativity, great characters, great stories. , great graphics, great gameplay, the ability to enjoy these experiences with other people all around the world. ”

2. Dynamixyz technology could boost future game sales

In the past, Dynamixyz worked with Take-Two only as a partner. Now that he’s officially part of Take-Two’s business, he’ll have exclusive access to all of the company’s intellectual property, and that’s probably the main reason Take-Two wanted to integrate Dynamixyz under his umbrella.

In the press release, Take-Two said, “Dynamixyz is the company’s latest strategic initiative to invest more in its internal development capabilities and pursue its goal of being the most creative, innovative and efficient entertainment company. ”

The deal precedes what Take-Two has called its deepest game pipeline in history with 62 new releases slated from new and existing franchises through fiscal 2024. It’s possible that one of these versions be the next installment of Grand Theft Auto.

There is already speculation that the acquisition of Dynamixyz indicates a new innovation in facial animation for Grand Theft Auto VI because the strong sales of the current installment have created a massive buzz for the next version. Grand Theft Auto V (GTA V) has enjoyed incredible success over the past eight years, selling 145 million copies.

3. Take-Two is ready for more growth

Over the past year, Take-Two has also hired 700 new developers and acquired several studios to expand the capabilities of the business. As Zelnick explained during the fiscal fourth quarter earnings call in May, these measures are aimed at improving the organization and growing the business over the long term.

The acquisition of Dynamixyz would certainly be part of this strategy. It may take a few years for the benefits of the deal to materialize, but it’s easy to imagine how this latest addition will help Take-Two infuse their franchises with cutting-edge graphic animation, creating even more compelling gaming experiences. and helping the company sell more copies of its upcoming releases, especially future installments from its larger franchises.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.



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