Last year, Take-Two Interactive's CEO, Strauss Zelnick, wasn't exactly in full support of Web3, a catch-all term encompassing blockchains, NFTs, and cryptocurrencies.
At the time, Zelnick basically described Web3 as speculative at best, saying "losing money on a speculation is not a good experience." Although Zelnick didn't exactly mention Web3 in the company's most recent financial report, a quick look at the presentation proves that Take-Two is thinking about it.
On Page 32 of TTWO's February 2023 Investor Presentation, Web3 is part of the "new business opportunities" the company wants to pursue in the future.
Unfortunately, the presentation didn't go much deeper into this planned investment, suggesting that Take-Two is taking its sweet time researching about the pros and cons of getting into Web3. Keep in mind that several gaming publishers who've ventured into Web3 in the past haven't had the best track record. The likes of Ubisoft and Square Enix have caught flack for their investments in Web3, specifically, NFTs.
If nothing else, Take-Two Interactive and Electronic Arts are in the same boat when it comes to their views on NFTs. EA CEO Andrew Wilson previously called the controversial digital tokens as an "important part of the future of our industry."
In the same earnings report, Take-Two revealed that it took a net loss for Q3 2023 despite seeing a 60% growth in bookings led by Grand Theft Auto 5 and Red Dead Redemption. Several factors contributed to the net loss, including the lower sales numbers posted by the company's most recent releases such as Midnight Suns, PGA Tour 2K23, and New Tales from the Borderlands.
It's unclear if the release of GTA Trilogy on Steam and WWE 2K23 in March will move the needle enough for Take-Two this quarter. Most likely, things will get worse for TTWO before they get better, especially after GTA Online only just recovered from a rather dangerous exploit.
Speaking of Web3, the former Rockstar North president, is all in on the "newer and better" version of the internet with its upcoming game, Everywhere.
