Rockstar Games will donate 5% of online revenue for COVID-19 relief
Rockstar Games is looking to help with ongoing COVID-19 relief efforts by offering five percent of all revenue from GTA Online and Red Dead Online.
The gaming world is continuing to step up its efforts to help everyone adjust to the continuing COVID-19 pandemic. Some are even going the extra mile by contributing to relief efforts. Among those assisting will be Rockstar Games. The publisher announced that it would take a portion of its revenue for the month of April and May and donate it towards coronavirus relief efforts.
Rockstar issued the following statement on Twitter on Tuesday afternoon:
Rockstar Games has also felt the pinch from the continuing coronavirus crisis. Two weeks ago, Rockstar employees were ordered to work from home over COVID-19 concerns. The New York-based publisher also pledged full support for its online games, noting that the support team would remain fully available in the weeks and months ahead.
Shacknews continues to monitor any and all news stemming from the COVID-19 pandemic. We will offer any updates as they come in.
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replyOzzie Mejia posted a new article, Rockstar Games will donate 5% of online revenue for COVID-19 relief
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5%...how big of them.
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Not sure what you mean by this? Not every company can afford to give 5% of revenue right now. Pretty sure Rockstar can. They're doing doing just fine: https://www.tweaktown.com/news/58516/gta-online-earned-1-09-billion-analyst-firm/index.html
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That is a valid point, but this is better than nothing. Right?
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It needs to be at least... 6%!
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Considering they got a corporate tax break from 35% to 21%, they should give at least 14%.
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I wonder if they still get tax subsidies in The UK
https://www.pcgamer.com/rockstar-responds-to-tax-avoidance-criticism-says-uk-tax-relief-is-a-proven-success/
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I looked at their last quarter report. https://ir.take2games.com/node/26586/pdf
Net revenues was $930M (this is both software and ingame purchase, more on that in a bit)
Gross profit after dev costs came to $493M
Operating costs were $316M
So (Gross Profit - Op. Costs) (+/- few other details) comes to a net profit of $163M, which is being split among about 113m shares.
Now back to the revenue. From their presentation, their online ingame purchases is about 37% of that $930M or 344M
5% of that is $17M - which after you work out all those numbrs above, is about 10% into their net profit. As they are a public company, that's about on the limit that I'd think shareholders would say "Yes, that's an acceptable put towards a good cause but still growing our shares".
It's *still* $17M over three months. That's damn impressive. And if there are more people home playing these games, it could be even higher.
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