Take-Two Rules Out Grand Theft Auto 6 Release in Current Fiscal Year

Take-Two has released its financial results for the fourth fiscal quarter, which ended on March 31, and has narrowed down the release window for Grand Theft Auto 6 to fall 2025. The company has reported a significant loss, primarily due to goodwill impairment and restructuring charges. The financial highlights include: - Net revenue: $1.40 billion, down 3% year-over-year - Net loss: $2.9 billion, compared to a $610 million loss in the year-ago quarter - Total net bookings: $1.35 billion, down 3% year-over-year For the full year, the financial highlights are: - Net revenue: $5.35 billion, flat year-over-year - Net loss: $3.74 billion, compared to a $1.12 million loss in the last fiscal year - Total net bookings: $5.33 billion, up 1% year-over-year Take-Two had previously mentioned that it expected $8 billion in bookings for fiscal 2025, which led to speculation that Grand Theft Auto 6 would be released during that period. However, the company has now confirmed that the game will be released in fall 2025, which falls within the publisher's fiscal 2026. "We are highly confident that Rockstar Games will deliver an unparalleled entertainment experience, and our expectations for the commercial impact of the title continue to increase," said Take-Two chairman and CEO Strauss Zelnick. Zelnick also acknowledged the increasing expectations surrounding Grand Theft Auto 6, but declined to confirm whether those expectations are higher than those for any other game the company has previously released. Grand Theft Auto 5 has sold over 200 million units worldwide, and engagement in Grand Theft Auto Online is higher than expected. The game's audience size grew 35% for the full year, while Grand Theft Auto Online's audience grew 23%. Rockstar's other major title, Red Dead Redemption 2, has sold almost 64 million units worldwide. NBA 2K24 has sold 9 million copies, down from 11 million for NBA 2K23 at the same point in its lifespan. WWE 2K24 has been a success, with the highest Metacritic average for the franchise since Take-Two acquired it, and Borderlands 3 has outpaced forecasts. Take-Two also reported that Zynga delivered outstanding results, with Toon Blast and Match Factory performing well and Rollic passing 3.5 billion downloads all-time. Despite these positives, Take-Two posted a GAAP net loss of $2.9 billion for the fourth quarter, primarily due to $2.18 billion in goodwill impairment charges and $304.3 million in charges for acquisition-related intangible assets. The company has also implemented its third cost-reduction program in over a year, involving layoffs and restructuring, which resulted in $93.3 million in charges. Zelnick explained that the cost-cutting programs were necessary due to the company's acquisition of Zynga and the need to integrate the two companies. He also cited post-pandemic consumer behavior and the need for the company to become more disciplined. Take-Two reported fourth quarter EBITDA of negative $19.6 million, and forecasts a net loss in fiscal 2025 between $606 million and $674 million, primarily due to a $710 million amortization hit. The company expects revenues between $5.57 billion and $5.67 billion, and bookings between $5.55 billion and $5.65 billion, for the current fiscal year. "Looking ahead, 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," Zelnick said. "As we deliver our pipeline, we are confident that we will drive our scale, enhance our margins, and deliver industry-leading returns for our shareholders."