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, revealing a narrowed release window for Grand Theft Auto 6 and a significant net loss. The company reported a net revenue of $1.40 billion, down 3% year-over-year, and a net loss of $2.9 billion, compared to a $610 million loss in the year-ago quarter. Total net bookings were $1.35 billion, down 3% year-over-year. For the full fiscal year, net revenue was $5.35 billion, flat year-over-year, and net loss was $3.74 billion, compared to a $1.12 million loss in the last fiscal year. Total net bookings were $5.33 billion, up 1% year-over-year. Take-Two had previously hinted that Grand Theft Auto 6 would launch in fiscal 2025, but has now confirmed that the game will arrive in the fall of 2025, putting it in the publisher's fiscal 2026. Rockstar Games' chairman and CEO, Strauss Zelnick, expressed confidence in the game's potential, stating that the company expects an 'unparalleled entertainment experience' and that expectations for the game's commercial impact continue to increase. Zelnick also acknowledged the growing expectations surrounding Grand Theft Auto 6 but declined to confirm whether they are now larger than those of any other game the company has previously released. Grand Theft Auto 5 has now sold over 200 million units worldwide, with engagement in Grand Theft Auto Online 'higher than we possibly could have expected.' The game's audience size grew 35% for the full year, while Grand Theft Auto Online's audience grew 23%. Red Dead Redemption 2 has sold-in almost 64 million units worldwide. On the 2K side, NBA 2K24 has sold-in 9 million copies, down from 11 million for NBA 2K23 at the same point in its lifespan. WWE 2K24 has been 'a resounding success' with the highest Metacritic average for the franchise since Take-Two acquired it, and Borderlands 3 'outpaced our forecasts.' Take-Two also reported 'outstanding' results from Zynga, with Toon Blast and Match Factory performing well and Rollic passing 3.5 billion cumulative downloads. 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 also incurred $93.3 million in charges due to its third cost-reduction program involving layoffs and restructuring. Zelnick attributed the need for three cost-cutting programs in a short span to integration savings, post-pandemic consumer behavior, and a desire to 'put a fine point on efficiency.' Excluding goodwill impairment and amortization, Take-Two reported fourth-quarter EBITDA of negative $19.6 million. For the full year, this would have been positive EBITDA of $272 million. The company forecasts a net loss in fiscal 2025 between $606 million and $674 million, primarily due to a $710 million amortization hit. Revenues are expected to be between $5.57 billion and $5.67 billion, up 4% to 6%, and bookings are expected to be between $5.55 billion and $5.65 billion, also up 4% to 6%. Zelnick expressed confidence in the company's ability to achieve new levels of success, drive scale, enhance margins, and deliver industry-leading returns for shareholders.