(Boursier.com) — Take-Two Interactive Software was under pressure yesterday in a post-session on Wall Street after reporting disappointing forecasts for its 2025 financial year. And for good reason, the highly anticipated “Grand Theft Auto VI” will ultimately not be released until the fall of 2025. The game should experiencing instant success with billions of dollars in sales each year according to several analysts. The American video game publisher now expects fiscal 2025 bookings of between $5.55 billion and $5.65 billion, down from its previous forecast of just over $7 billion. and a consensus of $6.92 billion. Adjusted EPS is anticipated between $2.34 and $2.59 versus $5.86 consensus.
This gloomy outlook follows disappointing forecasts from Electronic Arts and Roblox last week. Take-Two laid off about 5% of its workforce last month and scrapped several projects in development as part of a cost-cutting plan, aligning with similar moves in the gaming industry, which has been struggling with the slowdown in household consumption expenditure.
Nonetheless, the company and analysts expect bookings to accelerate from fiscal 2025, helped by the launch of GTA and a series of other releases, including titles from its recent acquisition of maker of “Borderlands,” Gearbox Entertainment.
In the fourth quarter of its 2024 financial year, the group generated adjusted EPS of 28 cents for revenues of $1.40 billion (-3.2%). Net bookings fell 2.9% to $1.35 billion.
©2024 Boursier.com