Take-Two Interactive, the renowned video game publisher, has recently released its financial results for the third fiscal quarter, ending on December 31. Despite a slight decline in sales and bookings, the company has managed to surpass its guidance and record its smallest quarterly net loss since the acquisition of Zynga in May 2022.
Net revenue for the quarter stood at $1.37 billion, representing a 3% decrease from the previous year. The net loss amounted to $91.6 million, a significant improvement from the $153 million loss in the corresponding quarter of the previous year. Additionally, total net bookings amounted to $1.34 billion, marking a 3% decline compared to the previous year.
While some of Take-Two’s flagship titles such as Grand Theft Auto 5 and Online, Red Dead Redemption, and Zynga’s lineup performed well, the company reported a setback in sales for NBA 2K24, citing ‘softness’ in its performance. Despite this, CEO Strauss Zelnick remains optimistic, emphasizing that NBA 2K24 is still the top-selling sports title in North America and expressing confidence in its long-term performance.
Grand Theft Auto 5 achieved a significant milestone, reaching 195 million units sold-in to retailers, with a notable surge in new Grand Theft Auto Online accounts attributed to the game’s holiday Chop Shop update. Meanwhile, Red Dead Redemption 2 has now shipped 61 million units, and Zelnick highlighted the company’s strong mobile performance, particularly with the debut of Zynga’s games, Top Troops and Match Factory.
Zelnick also addressed the transition to new hardware, noting a shift in consumer behavior towards newer gaming systems. He attributed the slower sales of NBA 2K24 on older systems to this transition, indicating that the company remains optimistic about the game’s future performance.
Overall, Take-Two’s financial results for the third fiscal quarter reflect a mixed performance, with notable successes in certain titles and areas, alongside challenges in others. The company’s focus on cost-cutting and strategic investments will be crucial in navigating the evolving landscape of the video game industry.
