Take-Two Interactive Software, the parent company of popular video game franchises like Grand Theft Auto and NBA 2K, reported its bookings for the June quarter. Despite the flat numbers compared to the previous year, the company remains confident in its path forward. One of the key factors in their optimism is the upcoming release of Grand Theft Auto VI, scheduled for the fall of 2025.
Take-Two’s solid first-quarter results were attributed to engaging players with exciting new game releases and content updates while maintaining efficiency through layoffs and cost reductions. The company’s core franchises are said to be healthy, and its management team is hard at work on an ambitious development pipeline. They are also exploring new growth opportunities to enhance their business model and financial profile.
In an interview, Take-Two Interactive CEO Strauss Zelnick expressed confidence in the future of the gaming industry, noting that the broader industry has returned to modest growth. He believes there are positive trends in both the console and mobile markets. Zelnick also mentioned the company’s commitment to creating new intellectual properties alongside its successful franchises, highlighting the importance of innovation to sustain long-term success.
Regarding the next generation of game consoles, Zelnick said he didn’t have any insight into their arrival. However, he expressed optimism about the upcoming Borderlands movie and the potential for growth in the franchise. When asked about the slight improvement in the industry, Zelnick emphasized the need for a balance between successful franchises and new intellectual properties. He stated that failing to create new hits would ultimately harm the business.
Take-Two’s subsidiary, Rockstar Games, exceeded expectations with its Grand Theft Auto series, and the momentum is building for the highly anticipated release of Grand Theft Auto VI in 2025. Grand Theft Auto Online also performed well, and Rockstar Games’ premium membership service, GTA+, experienced strong double-digit growth. Additionally, Red Dead Redemption 2 continued to engage its audience with new monthly bonuses and free outfits in Red Dead Online.
2K, another subsidiary of Take-Two, delivered a solid quarter with NBA 2K24, which has sold close to 11 million units to date. The franchise continues to expand its audience through innovative mobile experiences. 2K also released NFL 2K Playmakers, a free-to-play mobile title, and TopSpin 2K25, marking the return of a popular tennis franchise after a 13-year hiatus.
Take-Two’s acquisition of Gearbox Entertainment has added to its workforce, making the company even larger. They see potential growth opportunities for the Borderlands series and Gearbox’s catalog. Zynga, another company under Take-Two, had a successful quarter with strong performance at Peak and growth opportunities ahead.
Looking ahead, Take-Two expects net bookings for the fiscal year ending March 31, 2025, to be in the range of $5.55 billion to $5.65 billion, representing 5% year-over-year growth. They anticipate sequential increases in net bookings in fiscal 2026 and 2027, driven by their groundbreaking pipeline of games.
Overall, Take-Two Interactive remains optimistic about the future of the gaming industry and their position within it. They are focused on delivering new and exciting gaming experiences while maintaining efficiency and exploring growth opportunities. With highly anticipated releases like Grand Theft Auto VI and a strong lineup of games in their pipeline, Take-Two is poised for continued success in the years to come.