Take-Two Releases Results; Explains GTA6 Delay

Take-Two Interactive Software, Inc. Reports Results for Fourth Quarter and Fiscal Year 2025, serving up the usual set of astronomical numbers to boggle our minds. These include $1.58 billion in Q4 Net Bookings, $5.65 billion fiscal year 2025 Net Bookings, and initial projections for fiscal 2026 of Net Bookings between $5.9 and $6.0 billion. There's a mention of the recently announced delay of Grand Theft Auto VI to May 26, 2026, and the results mention Grand Theft Auto V no fewer than four times as one of the largest contributors to its bottom line. But an interview on VentureBeat with Strauss Zelnick explains the GTA6 delay is not because GTA5 continues to rake in the bucks after almost 12 years. Instead Zelnick explains that "Rockstar Games sometimes requires more time" before saying Take-Two historically hits promised release dates. And worthy of a Jedi master, he adds that this is not the "long delay" we're looking for:

In an interview with GamesBeat, Zelnick tole me some context around the announcement of the delay of Grand Theft Auto VI.

“We’re constantly seeking perfection here at Take-Two. Broadly and specifically, Rockstar Games sometimes requires more time. In this case, to deliver this groundbreaking project at the level that its fans demand.”

I asked why it was such a precise date, in terms of the new date for launching the game on May 26, 2026. Zelnick said that, generally speaking, when Take-Two announces a specific date, they stick to those dates, historically speaking.

While to me it looked like a long delay, Zelnick said that he would quibble that it was a long delay, as it was less than six months later. Since we didn’t know the original date Rockstar had in mind, we didn’t know it was a short delay. I asked if Zelnick felt like the industry was stabilizing, but he said Take-Two wasn’t reporting on how the industry was doing, only the company itself, and that it was a great fiscal year.
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Re: Take-Two Releases Results; Explains GTA6 Delay
May 16, 2025, 12:13
Jim
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Re: Take-Two Releases Results; Explains GTA6 Delay May 16, 2025, 12:13
May 16, 2025, 12:13
Jim
 
The loss is explained here:

Our GAAP results include impairment charges of (i) $3.55 billion related to goodwill and (ii) $176.3 million for acquisition-related intangible assets.

"goodwill" is a term related to positive sentiment and business reputation and brand recognition. It allows companies to charge more for their products. If you have an acquisition the company is also buying the "goodwill" of that other company. If they then shut it down, then that amount just disappears.
6.
 
Re: Take-Two Releases Results; Explains GTA6 Delay
May 16, 2025, 06:35
6.
Re: Take-Two Releases Results; Explains GTA6 Delay May 16, 2025, 06:35
May 16, 2025, 06:35
 
After successfully culling human staff thanks to AI tools and projections, some fancy Dan VP plan to maximize short term gain, offload risk, and obscure responsibility had some 'unintended consequences', Boo Hoo.
Life should not be a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming "Wow! What a Ride! - HT
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5.
 
Re: Take-Two Releases Results; Explains GTA6 Delay
May 16, 2025, 05:56
5.
Re: Take-Two Releases Results; Explains GTA6 Delay May 16, 2025, 05:56
May 16, 2025, 05:56
 
Mr. Tact wrote on May 15, 2025, 23:40:
RogueSix wrote on May 15, 2025, 22:15:
Well, what really boggles the mind is their quarterly operating loss of $3.8bn (annual operating loss is $4.4bn).
Debt servicing? Law suit settlements? That does seem like a large quarterly loss against the annual loss.

I dunno. I haven't studied economics but AFAIK you wouldn't include debt servicing in your operating expenses, right, which make up a whopping $4.58bn for the quarter? Operating expenses should literally just be your expenses to keep the lights on and to get shit done(?). They do list "interest" separately but it is only $22 million for the quarter.

However, taking a closer look, their biggest operating expense slice is $3.57bn for "business acquisition" and it is a recurring expense in Q4 for them (last year's operating expenses were also $3.2bn while in a "normal" quarter like Q3 their operating expenses are only $892 million.

So, yeah, it's probably not debt per se but them paying off the Zynga acquisition or something like that that really cuts into their bottom line at the end of each year until it is paid off.

BTW, interesting side fact: While layoffs always make the news, you can actually see from their presentation that Take2's headcount has been going up in recent years, i.e. from 8.9K peeps in 2023 to 9.6K in 2024 and now 10.1K in 2025.
Page 30 is also interesting where we can once again see in graphical format how insignificant full game sales have become. Take2 is making ~80% of their revenue from recurrent consumer spending (effectively live services stuff). Their PC revenue share is only 11% but that is due to Zynga (mobile division) taking such a huge share (51% ... consoles are at 38%).
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Re: Take-Two Releases Results; Explains GTA6 Delay
May 16, 2025, 05:20
4.
Re: Take-Two Releases Results; Explains GTA6 Delay May 16, 2025, 05:20
May 16, 2025, 05:20
 
RSI will own Take Two by then
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Re: Take-Two Releases Results; Explains GTA6 Delay
May 16, 2025, 01:49
El Pit
 
3.
Re: Take-Two Releases Results; Explains GTA6 Delay May 16, 2025, 01:49
May 16, 2025, 01:49
 El Pit
 
GTA 7 will be a crossover with Star Citizen, I guess?
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Re: Take-Two Releases Results; Explains GTA6 Delay
May 15, 2025, 23:40
2.
Re: Take-Two Releases Results; Explains GTA6 Delay May 15, 2025, 23:40
May 15, 2025, 23:40
 
RogueSix wrote on May 15, 2025, 22:15:
Well, what really boggles the mind is their quarterly operating loss of $3.8bn (annual operating loss is $4.4bn).
Debt servicing? Law suit settlements? That does seem like a large quarterly loss against the annual loss.
“I don't believe in anything you have to believe in." -- Fran Lebowtiz
1.
 
Re: Take-Two Releases Results; Explains GTA6 Delay
May 15, 2025, 22:15
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Re: Take-Two Releases Results; Explains GTA6 Delay May 15, 2025, 22:15
May 15, 2025, 22:15
 
Well, what really boggles the mind is their quarterly operating loss of $3.8bn (annual operating loss is $4.4bn). Good job flushing them $$$ down the shitter, Take2!

Oh well... when GTA VI releases next year, they will make it all back tenfold.
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