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Take-Two Interactive is reacting to a downswing in the gaming market by revising its full-year revenue outlook.
The New York-based company — which owns major video game publishers including Rockstar Games and 2K — generated $1.4 billion in revenue in fiscal Q2 2023, a 62% increase year-over-year that was attributed to 2K’s “NBA 2K22” and “NBA 2K23” titles.
Take-Two’s outlook adjustment reflects “a cautious view of the current macroeconomic backdrop, particularly in mobile,” according to CEO and chairman Strauss Zelnick.
- Game revenue was $1.21 billion in Q2 2023, up from $833 million in Q2 2022.
- Ad revenue hit $175 million, compared to $25.5 million last year.
- Full-year revenue — previously projected at $5.8 billion — is now estimated to range between $5.4 billion and $5.5 billion.
In May, the company completed its acquisition of mobile game developer Zynga in a deal valued at $12.7 billion, making Q2 2023 Zynga’s first full quarter under Take-Two.
Lackluster Profits
After a surge of interest and spending at the height of the pandemic — the gaming downswing has meant lackluster earnings for tech giants.
Sony’s Game & Network Services segment posted $4.8 billion in sales for the second quarter ending Sept. 30 — a 12% uptick year-over-year — but reported an operating income of $284 million during the quarter — a 49% drop in profit.
Microsoft generated $50.1 billion in revenue in fiscal Q1 — an 11% increase year-over-year — but its Xbox content and services business saw revenue decrease by 3% during the quarter.
