NBA 2K is not going anywhere any time soon.
Take-Two Interactive Software Inc., the company responsible for the NBA 2K video game franchise, and the NBA and NBPA announced on Tuesday that they agreed to a new licensing agreement.
The $1.1 billion, seven-year deal will allow Take-Two's 2K Studios to continue making the video game series that has become a best seller across all genres over the past few years.
According to The Wall Street Journal, NBA 2K19 was the best-selling sports video game of the past year and the third-best selling game of any variety in the United States as of November. Additionally, NBA 2K18 has sold a franchise-record 10 million units so far.
This new deal is more than double the amount of the previous licensing agreement that the groups put together in 2011. Licensing agreements for sports leagues for games typically range from 10% to 15% of the game's revenue. Take-Two does not release the revenue for individual games, but analysts' estimates lead them to believe this deal is on the higher side of those numbers.
In addition to the video game and the smartphone mobile app version of the game, Take-Two also partnered with the NBA to create a 2K esports league that launched in May 2018.
Along with Take-Two, the NBA and NBPA also have a licensing agreement with Electronic Arts Inc. for the NBA Live franchise.