Take-Two Outlook Down Following Midnight Suns and Other Commercial Misfires

1 year ago 99

News

Not even Captain America could save this fiscal quarter.

Published on February 6, 2023

As the world attempts to distance itself from the peak of Covid’s myriad of delayed game releases, its effects are still being felt in the industry. Case in point: Take-Two Interactive Software Inc, the publishing juggernaut with such franchises as Grand Theft Auto and NBA 2K under its belt, has lowered its projections for the quarter after its recent releases have failed to meet expectations.

Speaking with Bloomberg, Take-Two announced in a statement that, “bookings, which exclude deferred sales from online purchases, will be $1.31 billion to $1.36 billion in the fiscal fourth quarter, ending in March”.

This falls well short of Bloomberg’s compiled analyst estimation of $1.49 billion, following a previous annual forecast reduction in November. It also piles on after a disappointing third quarter, where net bookings of $1.38 billion fell short of analysts’ forecasts of $1.45 billion.

Chief Executive Officer Strauss Zelnick told Bloomberg that, “we’re taking another hard look at our cost structure. I have to do better and I have to drive the things we can address that won’t stand in the way of making great products that our consumers love, and that’s our job every day.”

Zelnick pointed to delayed release schedules that created a gap of established, blockbuster titles and an economic downturn that had led to decreased spending across the industry as a whole. Bloomberg’s Jason Schreier also revealed that, during the course of his discussion with Zelnick, he had been told that Marvel’s Midnight Suns had not been the commercial success they had anticipated.

Some news: Marvel's Midnight Suns was a critical success but a commercial flop. Take-Two CEO Strauss Zelnick told me in an interview this afternoon that "it's possible the release window wasn't perfect" but that he thinks it could have a long tail, like other Firaxis games

— Jason Schreier (@jasonschreier) February 6, 2023

With such a strong license behind it, there is every reason to anticipate that the tactical crossover title can pull itself out of the tailspin. It is somewhat surprising, however, to learn that its positive critical reception has not yet translated to sufficient market numbers.