Take-Two Interactive lowers profit projections amid weakening game demand

High competition, low demand: Take-Two Interactive Software delivered a disappointing forecast for fourth-quarter bookings, falling short of market expectations and leading to a sharp decline of 10 per cent in its shares after trading hours. The video game publisher attributed this outlook to weaker demand for its gaming titles like NBA 2K, citing factors such as lower consumer spending and intense competition from rivals such as Electronic Arts and Microsoft-owned Activision Blizzard.The company projected fourth-quarter bookings to range between $1.27 billion to $1.32 billion, significantly below analysts' expectations of $1.51 billion. Additionally, it revised its full-year bookings estimate to a range of $5.25 billion to $5.30 billion, down from its previous forecast of $5.45 billion to $5.55 billion.Analyst Michael Pachter from Wedbush Securities noted that the forecast cut primarily stemmed from the shift of a game out of the fiscal year, suggesting a limited impact on the company's long-term prospects. However, investors were disappointed by Take-Two's updated projection for fiscal 2025, which now stands ‘a little above $7 billion for net bookings, down from last year's revised forecast of under $8 billion. This downward revision dashed hopes of a boost from the anticipated release of ‘Grand Theft Auto VI’ in 2025.The company's third-quarter net bookings declined by 3 per cent to $1.34 billion, matching analysts' estimates. CEO Strauss Zelnick attributed the performance to strong showings from games like "GTA Online" and the "Red Dead Redemption" series, offset partially by softness in mobile advertising and sales of "NBA 2K". On an adjusted basis, Take-Two earned 71 cents per share, slightly below estimates of 72 cents.(With Reuters inputs)

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Take-Two Interactive lowers profit projections amid weakening game demand

The company projected fourth-quarter bookings to range between $1.27 billion to $1.32 billion, significantly below analysts' expectations of $1.51 billion.

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