What happened 

Shares of Take-Two Interactive (NASDAQ:TTWO) jumped as much as 12.3% in trading Tuesday after the company reported sales for its critical game Red Dead Redemption 2. Shares held gains most of the day and ended trading 11% higher than yesterday's close. 

So what

In its first three days on the market, Red Dead Redemption 2 logged $725 million in global retail sell-through, the company's second-biggest release behind Grand Theft Auto V, which sold $1 billion in the same time frame. 

Person playing video games.

Image source: Getty Images.

For context, Activision Blizzard's Call of Duty: Black Ops 4 recorded $500 million in sales in its first three days, so Red Dead Redemption 2 is outperforming one of the most popular games in the industry's history

Now what

This was the biggest game launch Take-Two Interactive had scheduled in 2018, so it's critical it was a hit. Investment bank Piper Jaffray had estimated the game would only generate $400 million to $500 million in sales, so this was a big launch given that context. The next measuring stick will be Take-Two's fourth-quarter results, which will include Red Dead Redemption 2's launch; they may be much better than previously expected. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Activision Blizzard and Take-Two Interactive. The Motley Fool has a disclosure policy.