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 and bookings. The company reported net revenue of $1.37 billion and a net loss of $91.6 million. Key highlights include Grand Theft Auto 5 and Red Dead Redemption 2 performing well, with the former reaching 195 million units sold-in and the latter hitting 61 million units shipped. However, NBA 2K24 sales were softer than expected, with 7 million units sold-in, compared to 8 million for NBA 2K23 at the same point in its lifecycle. Take-Two CEO Strauss Zelnick attributed the decline to slower sales on older systems and a shift to newer hardware. The company is implementing a cost-reduction plan, expected to be more robust than the previous one, to improve efficiency and maximize operating leverage. Despite this, Take-Two lowered its full-year guidance to $5.25 billion - $5.3 billion, citing NBA 2K24's softness, weakness in mobile advertising, and a delayed fourth-quarter release.