By Zaheer Kachwala
(Reuters) -Take-Two Interactive raised its annual bookings forecast on Thursday, betting on strong demand for its new “Mafia” and “Borderlands” titles, sending its shares up 5% in extended trading.
The firm stuck to the May 26 launch date for its highly awaited “Grand Theft Auto VI,” which is expected to generate billions of dollars within weeks of its release.
Take-Two is banking on “Mafia: The Old Country”, “Borderlands 4” and its core sports titles to drive growth in the absence of “Grand Theft Auto VI” against the backdrop of industry-wide struggles with challenging economic conditions.
The company’s executives said on a post-earnings conference that the U.S.’s tariff policy has created some risk and will lead consumers to become more careful and selective with spending.
Tariffs have also led to a hike in console and hardware prices as manufacturers grapple with higher raw material costs.
The company projected bookings of between $6.05 billion and $6.15 billion for its fiscal year 2026, compared with its prior forecast of between $5.9 billion and $6 billion.
The delay of “Grand Theft Auto VI” to the next fiscal year has put more pressure on Take-Two’s annual sports launches and AAA games.
Competition within the industry is also intense, with the launch of premium titles such as Sony’s “Ghost of Yotei” and Electronic Arts “Battlefield 6” later this year set to ratchet up the battle for gamer dollars.
The period from September to December is a lucrative period for the gaming industry as seasonal sales and new product launches typically drive strong sales for publishers.
Take-Two reported first-quarter bookings of $1.42 billion, beating estimates of $1.31 billion, according to data compiled by LSEG. This was due to the strong performance of its mobile portfolio, executives said.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Sriraj Kalluvila and Leroy Leo)
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