Take-Two Interactive Software, Inc. Misses on Earnings Expectations; Lays Out Cost-Cutting Plan

The company reported earnings that missed expectations and lowered its forecast for the year, amid slower-than-expected sales of its NBA 2K24 game. The company also said it was launching a cost-reduction program to maximize margins and increase operating leverage.

The program is incremental to the cost-reduction efforts the company initiated last year and includes additional spending reductions. Take-Two predicted it would see annual net bookings growth, increased scale, and improved profitability from its cost-cutting measures.

The video game maker also detailed a bevy of upcoming releases, including NBA 2K24, Borderlands 3 for Nintendo Switch, and a new WWE game, WWE 2K24. The company also said it was planning to release a new tennis game, Top Spin 2K25, marking its return to the sport after more than a decade.

In addition, Take-Two's mobile-focused subsidiary, Zynga, plans to release several new titles, including Star Wars Hunters and Game of Thrones: Legends.

The company said its net bookings reached $1.3 billion, compared to $1.5 billion last year. This was primarily driven by stronger-than-expected results from Grand Theft Auto V and Red Dead Redemption.