Take-Two Interactive Faces Challenges as 'Grand Theft Auto 6' Release Delayed

Video game publisher Take-Two Interactive Software (TTWO) exceeded expectations for its fiscal fourth quarter but lowered its outlook for the current fiscal year due to the delay of the highly anticipated 'Grand Theft Auto 6' release. The company reported earnings of 28 cents a share on net bookings of $1.35 billion in the quarter ended March 31, surpassing analyst estimates. However, Take-Two's adjusted earnings fell 53% year-over-year, and net bookings declined 3%. For the fiscal year ending next March, Take-Two forecasts net bookings between $5.55 billion to $5.65 billion, well below Wall Street's target. The company attributed its strong performance in the March quarter to titles like 'NBA 2K24,' 'Red Dead Redemption,' and the 'Grand Theft Auto' series. CEO Strauss Zelnick remains optimistic about the future, expecting sequential growth in net bookings for the next three fiscal years. Take-Two recently underwent cost-cutting measures, including layoffs and studio closures, to streamline operations and improve profitability. Despite these efforts, TTWO stock fell after the company's report, signaling investor concerns. The upcoming release of 'Star Wars Hunters' will be a significant event for Take-Two in June.