Take-Two Interactive Software (TTWO.O) projected lower-than-expected fourth-quarter bookings on Thursday, attributing the decline to reduced in-game spending on mobile titles amid ongoing economic uncertainties and high inflation. The company expects bookings to fall between $1.48 billion and $1.58 billion, slightly under analysts’ average estimate of $1.54 billion, according to LSEG data.
The broader videogame industry has faced headwinds over the past two years, including layoffs, studio closures, and canceled projects, fueled by weak sales and higher borrowing costs. Take-Two’s mobile games like “Empires & Puzzles” performed below company expectations, reflecting a trend of consumers cutting back on mobile game spending.
Despite the short-term challenges, Take-Two’s stock rose over 6% in extended trading after the company confirmed that the highly anticipated “Grand Theft Auto VI” remains on track for a fall 2025 launch. The long-running action-adventure franchise is known for its immersive sandbox gameplay and dynamic characters, with each new installment being a major event in the gaming industry.
Wedbush Securities analyst Michael Pachter noted that confirmation of the launch date eased investor concerns about potential delays. Take-Two also reaffirmed expectations for higher net bookings in fiscal 2026 and 2027, driven by “GTA VI” and other major releases.
Beyond “GTA VI,” Take-Two is set to release several high-profile titles this year, including “Borderlands 4” and “Mafia: The Old Country.”
While the company’s third-quarter bookings of $1.37 billion fell short of the $1.39 billion consensus, Take-Two posted adjusted earnings of 72 cents per share, beating analysts’ expectations of 57 cents. The company also noted that Zynga, which it acquired in 2022, has nearly completed its integration into the Take-Two ecosystem and should contribute more significantly to profitability moving forward.
