Latest news with #TakeTwo
Zawya
3 days ago
- Business
- Zawya
'GTA VI' delay weighs on global videogame market growth, data shows
The global videogame market's growth rate is expected to improve marginally in 2025 from the previous year, according to a report from research firm Newzoo, seen exclusively by Reuters on Tuesday. Analysts and industry experts had projected a surge in industry growth this year due to the expected blockbuster launch of Take-Two's "Grand Theft Auto VI" and new consoles. However, the delay of the long-awaited title to next year and price hikes to videogame hardware, arising from tariffs, have made consumer spending uncertain. The global videogame market is projected to grow 3.4% to $188.9 billion in 2025, compared with last year's growth of 3.2%, according to the report. "This forecast reflects concrete changes, hardware cycles, pricing trends, install base growth, and title pipelines," said Michiel Buijsman, principle analyst at Newzoo. Compounded annually, Newzoo expects the market to grow 3.3% till 2027, compared with its earlier forecast of 3.7%. As "GTA VI" is scheduled to launch in 2026, the industry will most likely see the boost from sales next year along with the release of other premium titles such as Capcom's "Resident Evil Requiem." The launch of "GTA VI" on PC is also expected to carry growth through 2027, the report said. Price increases to Microsoft's Xbox and Sony's PlayStation devices have sparked fears of slower hardware sales as consumers globally grapple with market uncertainty, even as Nintendo's Switch 2 became the company's fastest-selling console. Xbox also unveiled its own handheld console, the Xbox Ally, earlier this month, developed in partnership with ASUS and set to launch in holidays 2025. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh Kuber)
CNA
3 days ago
- Business
- CNA
'GTA VI' delay weighs on global videogame market growth, data shows
The global videogame market's growth rate is expected to improve marginally in 2025 from the previous year, according to a report from research firm Newzoo, seen exclusively by Reuters on Tuesday. Analysts and industry experts had projected a surge in industry growth this year due to the expected blockbuster launch of Take-Two's "Grand Theft Auto VI" and new consoles. However, the delay of the long-awaited title to next year and price hikes to videogame hardware, arising from tariffs, have made consumer spending uncertain. The global videogame market is projected to grow 3.4 per cent to $188.9 billion in 2025, compared with last year's growth of 3.2 per cent, according to the report. "This forecast reflects concrete changes, hardware cycles, pricing trends, install base growth, and title pipelines," said Michiel Buijsman, principle analyst at Newzoo. Compounded annually, Newzoo expects the market to grow 3.3 per cent till 2027, compared with its earlier forecast of 3.7 per cent. As "GTA VI" is scheduled to launch in 2026, the industry will most likely see the boost from sales next year along with the release of other premium titles such as Capcom's "Resident Evil Requiem." The launch of "GTA VI" on PC is also expected to carry growth through 2027, the report said. Price increases to Microsoft's Xbox and Sony's PlayStation devices have sparked fears of slower hardware sales as consumers globally grapple with market uncertainty, even as Nintendo's Switch 2 became the company's fastest-selling console. Xbox also unveiled its own handheld console, the Xbox Ally, earlier this month, developed in partnership with ASUS and set to launch in holidays 2025.
Reuters
3 days ago
- Business
- Reuters
'GTA VI' delay weighs on global videogame market growth, data shows
June 17 (Reuters) - The global videogame market's growth rate is expected to improve marginally in 2025 from the previous year, according to a report from research firm Newzoo, seen exclusively by Reuters on Tuesday. Analysts and industry experts had projected a surge in industry growth this year due to the expected blockbuster launch of Take-Two's (TTWO.O), opens new tab "Grand Theft Auto VI" and new consoles. However, the delay of the long-awaited title to next year and price hikes to videogame hardware, arising from tariffs, have made consumer spending uncertain. The global videogame market is projected to grow 3.4% to $188.9 billion in 2025, compared with last year's growth of 3.2%, according to the report. "This forecast reflects concrete changes, hardware cycles, pricing trends, install base growth, and title pipelines," said Michiel Buijsman, principle analyst at Newzoo. Compounded annually, Newzoo expects the market to grow 3.3% till 2027, compared with its earlier forecast of 3.7%. As "GTA VI" is scheduled to launch in 2026, the industry will most likely see the boost from sales next year along with the release of other premium titles such as Capcom's (9697.T), opens new tab "Resident Evil Requiem." The launch of "GTA VI" on PC is also expected to carry growth through 2027, the report said. Price increases to Microsoft's (MSFT.O), opens new tab Xbox and Sony's (6758.T), opens new tab PlayStation devices have sparked fears of slower hardware sales as consumers globally grapple with market uncertainty, even as Nintendo's (7974.T), opens new tab Switch 2 became the company's fastest-selling console. Xbox also unveiled its own handheld console, the Xbox Ally, earlier this month, developed in partnership with ASUS ( opens new tab and set to launch in holidays 2025.
Yahoo
04-06-2025
- Business
- Yahoo
TTWO Q1 Earnings Call: Revenue Misses Expectations, Guidance Highlights Mobile and Franchise Momentum
Video game publisher Take Two (NASDAQ:TTWO) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 13.1% year on year to $1.58 billion. Its GAAP loss of $21.08 per share decreased from -$17.02 in the same quarter last year. Is now the time to buy TTWO? Find out in our full research report (it's free). Revenue: $1.58 billion (13.1% year-on-year growth) Adjusted Operating Income: $252.8 million vs analyst estimates of $271.8 million (16% margin, 7% miss) Revenue Guidance for Q2 CY2025 is $1.38 billion at the midpoint, above analyst estimates of $1.31 billion EPS (GAAP) guidance for the upcoming financial year 2026 is $0.17 at the midpoint, missing analyst estimates by 82.3% EBITDA guidance for the upcoming financial year 2026 is $535 million at the midpoint, below analyst estimates of $1.97 billion Adjusted EBITDA Margin: 18.5% Market Capitalization: $42 billion Take-Two's first quarter results were shaped by a mix of new game launches across its core labels and ongoing strength in established franchises. Management credited the launch of Sid Meier's Civilization VII, WWE 2K25, and PGA TOUR 2K25, as well as strong engagement from NBA 2K and Grand Theft Auto titles, for driving revenue growth. CEO Strauss Zelnick highlighted that NBA 2K25 saw a 7% year-on-year increase in units sold, with engagement metrics like daily active users and average games per user up significantly. The company also noted robust performance from mobile subsidiary Zynga, especially new titles like Match Factory and Color Block Jam, both of which contributed to higher recurrent consumer spending. CFO Lainie Goldstein attributed the quarter's margin pressures to higher development costs for unreleased titles and noted a partial goodwill impairment charge tied to updated long-term expectations for one business unit. Looking forward, management emphasized a pipeline of major releases and a continued focus on operating efficiency as key to future growth. Take-Two expects NBA 2K, Grand Theft Auto, and new launches such as Mafia: The Old Country and Borderlands 4 to be the primary drivers for the year ahead. Zelnick stated, 'We expect sequential growth for both this year and next, even before Grand Theft Auto VI is released.' Goldstein pointed to a modest increase in operating expenses, mainly for marketing upcoming titles, but assured investors that expense growth is expected to lag behind revenue growth. Management also signaled that the share of direct-to-consumer revenue should expand, aided by recent court rulings, and cautioned that mobile trends may moderate due to the maturity of certain Zynga titles. Management attributed the quarter's performance to strong franchise engagement, new title launches, and stabilization in mobile, while margin headwinds stemmed from higher development costs and a goodwill impairment. NBA 2K engagement surge: NBA 2K25 outperformed internal forecasts, with unit sales up 7% over last year and significant gains in user engagement metrics; management credited improved features and a focus on core player demands. Mobile titles drive growth: Zynga's new games, including Match Factory and Color Block Jam, achieved profitability quickly and contributed to both net bookings and engagement; management cited the multi-studio approach as a competitive advantage. Recurrent spending momentum: Recurring in-game purchases across NBA 2K, Grand Theft Auto Online, and mobile titles grew 14% year-on-year, now accounting for 77% of net bookings in the quarter, with NBA 2K's in-game monetization up over 40%. Cost and margin pressures: Operating expenses rose due to higher development outlays for games not yet released, with Goldstein noting that a $3.6 billion impairment hit operating margins, partly reflecting updated expectations for Zynga. Direct-to-consumer channel expansion: The company highlighted growing direct-to-consumer sales, especially in mobile, and expects recent court decisions to further reduce third-party distribution costs and allow more direct customer relationships. Take-Two's outlook is anchored by major new title launches, franchise strength, and a focus on cost control amid moderating mobile trends. New game pipeline: Management expects Mafia: The Old Country and Borderlands 4, along with annual sports iterations, to drive sequential growth and maintain player engagement ahead of Grand Theft Auto VI's release. Operating efficiency initiatives: Cost discipline through a previously announced reduction program is intended to offset rising development and marketing costs, with management aiming for operating expense leverage as net bookings grow. Mobile market headwinds: While Zynga's recent hits support optimism, Goldstein warned that some mature mobile titles may see softer trends, potentially moderating overall mobile segment growth despite ongoing investment in new launches. In the coming quarters, the StockStory team will be watching (1) player response and engagement metrics for new releases like Mafia: The Old Country and Borderlands 4, (2) the performance and monetization trajectory of Zynga's recent and upcoming mobile launches, and (3) the ramp-up of direct-to-consumer initiatives as regulatory and legal changes unfold. Execution on operating efficiency and the lead-up to Grand Theft Auto VI remain key markers of progress. Take-Two currently trades at a forward EV/EBITDA ratio of 19.4×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
24-05-2025
- Entertainment
- Forbes
Gamers Are Making EA, Take-Two And CDPR Scared To Use AI
GTA 6 This past week, Fortnite introduced an AI Darth Vader using James Earl Jones' voice to respond to players' voice chat. It was goofy fun (and in keeping with Jones' voice rights deal), but AI is not starting to make some large publishers nervous for a few reasons. Jason Schreier has an excellent article over at Bloomberg highlights that recent reports from big companies like EA and Take-Two have addressed the issue, as have others like CDPR. On its surface, it seems like GenAI could be used as a tool in games to produce artwork, voice acting, or even game elements themselves. But these companies are starting to realize the very real risks this poses, both legally and 'reputationally.' Take-Two says that the use of AI 'presents social and ethical issues that may result in legal and reputational harm and liability. EA echoes something similar, saying that the use of AI 'may result in legal and reputational harm' which would cause players to 'lose confidence in our business and brands.' We've already heard aspects of this in the past from fan-favorite developer CDPR as well, which said: 'Use of GAI raises many legal concerns, including lack of IPR protection for content on which GAI relies, or potential inadvertent infringement of third-party IPR.' FEATURED | Frase ByForbes™ Unscramble The Anagram To Reveal The Phrase Pinpoint By Linkedin Guess The Category Queens By Linkedin Crown Each Region Crossclimb By Linkedin Unlock A Trivia Ladder Cyberpunk 2077 So there are two issues here. 1) The legality of GenAI is still in flux. Yes, big tech companies from Google to Meta to OpenAI are blasting forward by training their models on the entire internet, copyrighted work they don't own. A number of content producers, from the New York Times to musicians and actors are suing various services and there have yet to be any firm decisions about what can or cannot be used with GenAI. So the issue here would be that if you use AI assets in the game, and rulings come down that this is all now illegal, you'd have to reshape large parts of your game, or even risk legal action yourself if you were wrapped up with all these other entities. 2) 'Reputational harm' is a very real thing with gamers right now. When a game is discovered to be using GenAI, it's roasted online and players deem it 'slop' and sometimes will even say they'll boycott a game because of it. Attach GenAI to your games, which is at this point, not hard to spot, and you risk associating that brand with tech everyone hates, including many of the developers actually making those games, like say, artists or writers that are having their work replaced by 'slop.' Darth Vader Even with instances like the Darth Vader AI in Fortnite, which is approved of and licensed by the family of James Earl Jones, how does that affect video game voice actors, and there is already a strike going on there where the attempt to license voices to be fed into AI is a core issue. There may be an aspect of AI more generally to help with development in more technical ways, but GenAI to create art or voicework is an entirely different category and something that as of now, has been roundly rejected by gamers to the point that this kind of things needs to work its way into financial reports. It reminds me of the whole web3/NFT craze that then turned into the metaverse crazy and then they all died because…gamers didn't want any of that. AI at large is already reshaping the world, but perhaps gamers can keep this wall up so it doesn't make it into video games. Follow me on Twitter, YouTube, Bluesky and Instagram. Pick up my sci-fi novels the Herokiller series and The Earthborn Trilogy.
