Take-Two Interactive Software tempered expectations for fiscal 2025 bookings on Thursday, after announcing the release of “Grand Theft Auto VI” in the fall of calendar 2025. Shares of the New York-based company dropped 2.5% in extended trading.
The revised forecast reflects the new launch timing for the highly-anticipated title, which is expected to generate billions in annual sales according to several analysts. The video game publisher now projects fiscal 2025 bookings to be between $5.55 billion and $5.65 billion, down from its previous forecast of just over $7 billion.
Take-Two’s adjusted outlook comes on the heels of disappointing forecasts from Electronic Arts and Roblox last week.
Last month, Take-Two reduced its workforce by about 5% and canceled several development projects as part of a cost-reduction strategy, mirroring similar measures across the gaming industry in response to decreased consumer spending.
Despite the tempered forecast, both the company and analysts anticipate an acceleration in bookings from fiscal 2025 onwards, driven by the GTA launch and a series of other releases, including titles from its recent acquisition of “Borderlands” maker Gearbox Entertainment.
“My guess is that they add $150 million this year and perhaps $300 million to $400 million in FY27,” said Wedbush securities analyst Michael Pachter when asked about Gearbox’s potential revenue contribution to Take-Two.
“We believe that our company is poised to achieve new levels of success, and we expect to deliver sequential growth in net bookings for fiscal 2025, 2026, and 2027,” stated Take-Two CEO Strauss Zelnick.
Take-Two executives mentioned in a post-earnings conference call that the company has a pipeline of about 40 titles through fiscal 2027, with 16 titles slated for fiscal 2025.
“They (Take-Two) should see a lot of growth in GTA Online once GTA VI launches,” added Wedbush’s Pachter.
For the fourth quarter, Take-Two’s bookings fell 3% to $1.35 billion, yet still surpassed the average analysts’ estimate of $1.30 billion, according to LSEG data.
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