Take-Two 'Reasonably Confident' Amid Tariff Changes

The ongoing tariff turmoil in the U.S. continues to spark conversations across the gaming industry, affecting everything from hardware to software. While some industry members express concern over potential consumer and business impacts, Take-Two Interactive’s CEO, Strauss Zelnick, appeared unfazed during a recent investor Q&A call regarding tariff-related issues.

As the discussion turned toward possible console price hikes, particularly following the recent Xbox Series pricing adjustments and anticipated PlayStation 5 increases, Zelnick expressed confidence in Take-Two's financial outlook. He noted that the company’s fiscal guidance remains stable for the upcoming fiscal year, despite the uncertainty surrounding tariffs.

"Our guide is for the next ten months, essentially, that's the part of the fiscal year that hasn't elapsed yet, and it's very difficult to predict where tariffs will land, given how things have bounced around so far. We feel reasonably confident that our guide wouldn't be meaningfully affected, unless tariffs ran off in a very different direction than we currently expect. In any case, there's already a very substantial install base for all of our target platforms except Nintendo Switch 2, which is pre-launch. So we have, I think, enough insight that we wouldn't be affected by any changes."

Zelnick highlighted that most of Take-Two's upcoming releases are targeted at existing platform owners, minimizing the risk of significant sales fluctuations due to minor shifts in console adoption rates. Additionally, a large portion of the company's revenue stems from digital purchases in established titles like Grand Theft Auto V, Red Dead Redemption 2, and its mobile offerings—areas unaffected by tariffs.

Despite this confidence, Zelnick acknowledged the inherent unpredictability of the situation. Industry analysts have repeatedly emphasized the fluid nature of tariff developments, a reality even acknowledged by the CEO himself.

Prior to the investor call, we discussed Take-Two's quarterly performance, including insights into the delayed development timeline for GTA VI. Zelnick also shared his optimism regarding the upcoming Nintendo Switch 2, emphasizing its potential market impact.