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. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.