Take-Two CEO Strauss Zelnick Discusses Tariffs, AI, and Grand Theft Auto 6

Take-Two Interactive has reported strong results for Q3 FY 2025, with a diverse portfolio of games and a growing mobile business. CEO Strauss Zelnick spoke about the company's strategy, including its approach to annualized titles and long-term projects. He noted that only a select few sports entertainment titles should be annualized, while other games should be given more time to develop. This approach allows for the creation of high-quality games that can build a strong franchise and generate anticipation among consumers. The company is also focused on its mobile business, which has rebounded from a downturn in 2022 and is now experiencing modest growth. The addition of Zynga has been a key factor in this growth, with the company expecting to generate over $5.5 billion in net bookings this year. Zelnick also discussed the potential impact of tariffs on the industry, stating that a world without tariffs is generally better for business. However, he noted that tariffs can be necessary in certain situations, such as when a country is engaging in unfair trade practices. The company is also exploring the use of AI in its business, but Zelnick emphasized that AI is not a replacement for human workers. Instead, it can help make the company's operations more efficient and improve productivity. Rockstar Games, a subsidiary of Take-Two, is also working on several high-profile titles, including Grand Theft Auto 6, which is expected to be released in fall 2025. Zelnick expressed enthusiasm for the game, but noted that the company never claims success before it has been achieved. He also emphasized the importance of protecting intellectual property and respecting the rights of other companies in the industry.