Take-Two Interactive Software program let the cat out of the bag because it postponed the launch of Grand Theft Auto VI (now approaching Could 26, 2026), and now we will see the impression of that on its outlook.
The corporate reported its web bookings for the fourth-fiscal quarter ended March 31 hit $1.58 billion, up 17% from the identical quarter a 12 months in the past. The outcomes have been within the prime finish of the corporate’s personal steering.
Good outcomes for NBA 2K25, Grand Theft Auto On-line and Grand Theft Auto V, Civilization VII, Toon Blast, Match Manufacturing facility, Empires & Puzzles, Purple Lifeless Redemption 2 and Purple Lifeless On-line and WWE 2K25.
The corporate stated that giving Rockstar Video games extra time to complete Grand Theft Auto VI will enhance high quality, and it famous that its most up-to-date trailer on GTA VI bought 475 million views in 24 hours, up from the announcement trailer of 93 million views.
GAAP web income was $1.582 billion, up 13% from final 12 months’s fiscal fourth quarter. The GAAP web loss was $3.373 billion, or $21.08 per share, as in comparison with $2.9 billion, or $17.02 per share, for the comparable interval final 12 months. Analysts have been anticipating GAAP revenues of $1.55 billion and a loss per share of 5 cents. The GAAP outcomes included impairment expenses of $3.55 billion associated to goodwill and $176.3 million for acquisition-related intangible belongings.
Internet bookings are the corporate’s operational metric, and it’s outlined as the web quantity of services and products offered digitally or sold-in bodily through the interval. It consists of licensing charges, merchandise, in-game promoting, technique guides and writer incentives. GAAP revenues don’t rely income that’s booked within the quarter however realized at later occasions.
The most important contributors to web bookings have been NBA 2K25 and NBA 2K24, Grand Theft Auto On-line and Grand Theft Auto V, Civilization VII, Toon Blast, our hyper-casual cellular portfolio, Match Manufacturing facility!, Empires & Puzzles, Purple Lifeless Redemption 2 and Purple Lifeless On-line and WWE 2K25.
As of March 31, 2025, Take-Two’s variety of staff was 12,928, together with 10,096 in-house improvement studio employees. That was up about 31 individuals for the reason that earlier quarter, and the remainder of the corporate’s headcount was up about 49 individuals. About 22% of the employees have been in low-cost places (India, China, Turkey, Serbia, Chile, and Hungary).
“We achieved excellent ends in our 2025 Fiscal Yr, with every of our labels contributing meaningfully to our efficiency,” stated Strauss Zelnick, CEO of Take-Two, in an announcement. “Our Fiscal 2026 outlook displays persevering with constructive momentum, with Internet Bookings steering of $5.9 to $6.0 billion. As we convey our thrilling lineup to market, together with Grand Theft Auto VI in Fiscal 2027, we anticipate to attain file ranges of Internet Bookings that may set up a brand new baseline for our enterprise and set us on a path of enhanced profitability.”
In an interview with GamesBeat, Zelnick tole me some context across the announcement of the delay of Grand Theft Auto VI.
“We’re always looking for perfection right here at Take-Two. Broadly and particularly, Rockstar Video games typically requires extra time. On this case, to ship this groundbreaking undertaking on the degree that its followers demand.”
I requested why it was such a exact date, when it comes to the brand new date for launching the sport on Could 26, 2026. Zelnick stated that, usually talking, when Take-Two pronounces a selected date, they stick with these dates, traditionally talking.
Whereas to me it appeared like a protracted delay, Zelnick stated that he would quibble that it was a protracted delay, because it was lower than six months later. Since we didn’t know the unique date Rockstar had in thoughts, we didn’t realize it was a brief delay. I requested if Zelnick felt just like the {industry} was stabilizing, however he stated Take-Two wasn’t reporting on how the {industry} was doing, solely the corporate itself, and that it was an incredible fiscal 12 months.
I discussed that within the earlier quarter we had mentioned the uncertainty round tariffs. He replied, “Effectively, you realize that tariffs have been a shifting goal. Thus far, we don’t anticipate tariffs may have a significant impression, if any, on software program pricing, and subsequently gross sales [would not likely be affected].”
He added, “Undoubtedly, tariffs may have an effect on console prices, on pricing, and something that stands in the way in which of the expansion of an put in base is unhealthy information for us in comparison with the shortage of encumbrances. So we’re hopeful that our state of affairs can be resolved in such a approach as to profit shoppers broadly.”
I requested concerning the increased pricing of Change 2 titles like Mario Kart World, which can promote on the Change 2 for $80. Whereas not commenting on Nintendo’s pricing, he stated rivals have introduced variable pricing, however the firm has all the time had variable pricing itself.
“Our job as an organization, and I believe the job of the {industry} is to ship far more worth given what we cost. And naturally, interactive leisure [delivers] so many hours of gameplay related to titles that individuals love,” he stated.
He famous that the objective is to supply the most effective worth within the enterprise when it comes to value per hours performed. He confirmed that Borderlands 4 is launching on PC and consoles (Xbox and PlayStation) whereas the Change 2 model is popping out later however doesn’t have a ship date but. He stated that, past Grand Theft Auto VI, there was no important motion within the firm’s slate for upcoming titles. Take-Two expects development within the fiscal 12 months 2027, which is 12 months GTA VI will launch now, to be constructive at about 5% within the midrange however the firm is just not spelling out a quantity for anticipated bookings in that 12 months.
Take-Two stated every of its labels contributed meaningfully to efficiency within the quarter.
The corporate stated, “2K posted a implausible quarter, with the profitable launches of Sid Meier’s Civilization VII, WWE 2K25, and PGA TOUR 2K25. NBA 2K delivered one in every of its strongest intervals on-record, together with recurrent shopper spending development of 42%. Rockstar Video games excelled as soon as once more, with the Grand Theft Auto and Purple Lifeless Redemption collection surpassing our forecasts; and Zynga continued to achieve momentum, led by Match Manufacturing facility, Toon Blast, and Rollic’s latest hit – Colour Block Jam.”
Recurrent shopper spending development was up 14% over final 12 months and accounting for 77% of web bookings. NBA 2K grew over 40%, whereas Grand Theft Auto On-line and cellular each elevated mid-single digits. All of those companies tremendously exceeded forecasts.
For the fiscal 12 months, Take-Two reported web bookings of $5.65 billion, which was additionally the highest of steering vary of $5.55 billion to $5.65 billion.
Recurrent shopper spending exceeded the agency’s outlook, rising 7%, and accounted for 80% of web bookings. NBA 2K grew high-teens; cellular elevated mid-single-digits; and Grand Theft Auto On-line declined modestly.
Working bills elevated 28% to $7.5 billion, because of the impairment expenses recorded throughout our fourth quarter. On a administration foundation, working bills rose 11% year-over-year, barely above steering, resulting from increased improvement prices for titles not technologically possible. The corporate spent roughly $169 million on capital expenditures, which was above forecast of $140 million, primarily resulting from increased recreation expertise bills.
Division label outcomes
2K: NBA 2K25 posted near-record efficiency and exceeded our forecast. Thus far, the title has sold-in almost 10 million items — a 7% enhance in comparison with NBA 2K24 throughout the identical timeframe.
Engagement grew considerably, with Every day Lively Customers, MyCareer Every day Gamers, and Common Video games Per Person rising 30%, 40%, and 80%, respectively. The corporate was please with the efficiency of model extensions for the franchise.
NBA 2K25 Arcade Version stays a top-5 performing title on Apple Arcade; NBA 2K On-line in China continues to carry its place because the No. 1 PC sports activities recreation within the nation; and NBA 2K All-Stars cellular title, which the agency developed in partnership with Tencent and launched on March 25, is sustaining the No. 1 spot on the iOS Sports activities Recreation Chart for each downloads and income in China.
2K’s launch of WWE 2K25 was met with vital acclaim, together with a rating of 84 on Metacritic for Xbox Collection X – an all-time excessive for the collection on that platform. Visible Ideas launched new options, together with The Island, a extremely immersive WWE-themed world the place gamers can discover, compete in stay occasions, and earn rewards.
Client urge for food for the franchise is rising, with recurrent shopper spending up 20% through the quarter. This consists of robust efficiency from WWE SuperCard, which achieved near-record ranges of web bookings in March. WWE 2K25 has been built-in frequently into WWE’s televised programming and was additionally a cosponsor of final month’s spectacular WrestleMania 41.
As well as, 2K is bringing WWE 2K to Change 2 this summer season in addition to bringing WWE 2K to cellular units this Fall in partnership with Netflix.
2K and HB Studios efficiently launched PGA TOUR 2K25, which earned a Metacritic rating of 80 on PS 5 and is producing important recurrent shopper spending development in comparison with 2K24. Throughout the interval, 2K launched Sid Meier’s Civilization VII, the brand new chapter in our esteemed technique franchise. As stewards of the Civilization collection, Firaxis Video games strives to convey innovation with every new launch.
Take-Two stated it’s assured that the event staff’s ongoing efforts to replace key areas of the sport will ship excellent outcomes over the franchise’s sometimes lengthy gross sales cycle. The groups are pursuing alternatives to develop the viewers, together with the latest launch of Civilization VII VR for Meta Quest 3 and 3S, in addition to the title’s upcoming launch on Change 2, which can provide new mouse controls for a extremely intuitive gameplay expertise.
Rockstar Video games
The Grand Theft Auto collection as soon as once more exceeded expectations, and to-date, GTA V has sold-in over 215 million items. Recurrent shopper spending outperformed our forecasts, rising 5% year-over-year, led by an array of recent modes, rewards, and autos for GTA On-line, in addition to ongoing demand for GTA+ memberships.
Rockstar Video games continues to develop the probabilities for engagement with the collection by way of ongoing improvement of its FiveM creator platform. Purple Lifeless Redemption 2 additionally outperformed, with Internet Bookings rising 23% over final 12 months. Rockstar Video games continues to assist Purple Lifeless On-line with a collection of rewards that interact their neighborhood additional.
Zynga
Zynga overperformed through the interval, and we’re happy that their momentum is continuous into Fiscal 2026.
Peak delivered implausible outcomes. Match Manufacturing facility exceeded our expectations, pushed by first-class live-ops execution and the introduction of Mission Heart, a limited-time occasion that drove important participant engagement. Internet Bookings grew meaningfully over final quarter, and the title is producing earnings.
Internet Bookings for Toon Blast grew 7% over final 12 months, primarily because of the introduction of the Cannon Fest occasion. The corporate can be thrilled that the title achieved its largest quarter of Internet Bookings since Zynga acquired Peak in 2020.
Rollic’s latest hit, Colour Block Jam, is scaling quickly and is presently a top-10 downloaded recreation and among the many top-grossing titles within the U.S. Apple App Retailer. In simply 4 months of operation, the title has change into worthwhile and is making a formidable contribution to our cellular Internet Bookings.
Take-Two stated it’s inspired to see stabilization in Empires & Puzzles. Small Big improved the title’s in-game economic system to assist sooner participant development and developed enjoyable new options primarily based on participant suggestions, like Prompt Energy Summon, Hero Coach, and Visiting Clothes shop.
Zynga has quite a few titles in improvement and mushy launch that it stated it’s desperate to convey to market worldwide.
The direct-to-consumer enterprise delivered file efficiency, as our groups proceed to launch new gives, occasions, and enhanced personalization, that are driving higher conversion. Whereas Zynga have been implementing DTC in our titles for a while, the corporate believes there may be a fair larger alternative to develop this extremely accretive channel given latest helpful court docket rulings.
As the corporate approaches the three-year anniversary of its acquisition of Zynga, Take-Two stated this can be very happy that the label has change into an integral a part of the corporate. Zynga’s core franchises are robust, and the corporate is energized by the staff’s distinctive potential to launch hits in a extremely aggressive cellular market, demonstrating additional the effectiveness of their multi-studio method and continued excellence in Stay Ops.
Outlook for FY26
Take-Two stated it estimates web bookings for the FY26 12 months ending March 31, 2026 is $5.9 billion to $6 billion, which represents 5% development over Fiscal 2025 on the midpoint.
This outlook assumes a continuation of our present constructive tendencies, together with wholesome cellular efficiency and ongoing power in NBA 2K, in addition to the discharge of a number of eagerly anticipated titles, together with Mafia: The Previous Nation and Borderlands 4.
GTA VI expectations
Rockstar expects to launch Grand Theft Auto VI on Could 26, 2026, which is in fiscal 12 months 2027. Take-Two stated it believes affording Rockstar further time for such a groundbreaking undertaking is a worthy funding.
Grand Theft Auto VI started improvement in earnest in 2020 following the large success of Purple Lifeless Redemption 2, and the title is now probably the most anticipated leisure property of all time.
Client anticipation is unprecedented, with Trailer 2’s cross-platform debut final week shattering data to change into the most important video launch of all time, with over 475 million views in 24 hours. This follows Trailer 1’s record-breaking debut of 93 million views in 24 hours on YouTube alone. Spotify streams of the monitor featured within the trailer, Sizzling Collectively, by the Pointer Sisters, surged by 182,000%, as soon as once more proving Rockstar’s potential to affect widespread tradition.
The ambition and complexity of Grand Theft Auto VI is larger than any earlier Rockstar title, and the staff is poised to launch one other astonishing leisure expertise that may exceed gamers’ expectations.
Largest contributors to web bookings are anticipated to be NBA 2K, the Grand Theft Auto collection, Toon Blast, Borderlands 4, Match Manufacturing facility, Empires & Puzzles, Phrases With Pals, the Purple Lifeless Redemption collection, and Zynga Poker.
The corporate expects recurrent shopper spending to be flat in comparison with Fiscal 2025, and to symbolize 76% of Internet Bookings. Our recurrent shopper spending forecast assumes excessive single-digit development for NBA 2K and declines for cellular and Grand Theft Auto On-line.
Launch slate for the following 12 months
Throughout Fiscal 2026, Take-Two plans to launch 13 titles, together with 4 throughout the immersive core class; 5 cellular titles, together with WWE 2K for Netflix within the fall; and 4 new iterations of prior releases, together with the latest launch of Civilization VII VR for Meta Quest 3 and 3S, in addition to Civilization VII for Change 2. As well as, our labels will proceed to supply new content material and experiences that drive engagement and recurrent shopper spending throughout a lot of our key choices.
The corporate expects the web bookings breakdown from our labels to be roughly 45% Zynga, 39% 2K, and 16% Rockstar Video games. Plan to deploy roughly $140 million of capital expenditures for recreation expertise and workplace buildouts.
On August 8, 2K and Hangar 13 will introduce Mafia: The Previous Nation. This linear, narrative-driven recreation is a premium expertise within the vein of early Mafia titles, set in opposition to the gorgeous, genuine backdrop of 1900s Sicily. Pre-orders are off to a robust begin following the debut of the primary official gameplay trailer at PAX East final week, and we’re excited for its upcoming launch.
2K and Gearbox will launch Borderlands 4 on September twelfth. Final month, through the PlayStation State of Play, our groups shared an prolonged take a look at the action-packed gameplay coming within the title. Gamers have been handled to a primary take a look at two of 4 new Vault Hunters as they tore a path by way of a secret black web site in Terminus Vary, showcasing the harmful energy of an up to date gear system. The Borderlands neighborhood reacted very positively, with the sport trending on X, and changing into one of the vital wish-listed video games on Steam. 2K and Gearbox will even launch Borderlands 4 for the Change 2 sooner or later.
The corporate will launch the following iterations of the industry-leading annual sports activities franchises, NBA 2K and WWE 2K.
Lengthy-term outlook
With a player-first method and a deep dedication to high quality, the corporate stated it strives to create the most effective leisure experiences for international communities and to redefine the artwork kind.
As the corporate brings its thrilling lineup to market, together with Grand Theft Auto VI in Fiscal 2027, the corporate expects to attain file ranges of web bookings that may set up a brand new baseline for the enterprise and set it on a path of enhanced profitability.
Pipeline FY26-FY28
The corporate is extraordinarily optimistic about its upcoming pipeline, which incorporates roughly 38 titles between Fiscal 2026-2028.
Wanting forward, the corporate presently expects to ship 25 titles all through Fiscal 2027 and 2028 together with: 17 immersive core releases, together with Grand Theft Auto VI and 5 sports activities simulation video games; 4 cellular video games; and 4 new iterations of beforehand launched titles.
