Take-Two Implements Further Cost-Cutting Measures Amid 3% Decline in Q3 Sales

Take-Two has released its Q3 financial results, revealing a 3% year-over-year decline in sales, but still managing to surpass its guidance. The company reported net revenue of $1.37 billion and a net loss of $91.6 million, its smallest quarterly loss since the acquisition of Zynga in May 2022. Key performers for the quarter included Grand Theft Auto 5, Red Dead Redemption, and Zynga's titles, although NBA 2K24 experienced 'softness' in sales, selling-in 7 million units compared to 8 million for NBA 2K23 at the same point in its lifecycle. CEO Strauss Zelnick attributed this to a transition in consumer hardware preferences, noting that the game is still the top-selling sports title in North America. The company's mobile segment also showed promise, with titles like Top Troops and Match Factory performing well. Take-Two is introducing a new cost-reduction plan, expected to be more extensive than the previous one, in an effort to optimize efficiency and leverage its upcoming pipeline. The company has lowered its full-year guidance to $5.25-5.3 billion due to the underperformance of NBA 2K24 and weakness in its mobile advertising business.