GTA 5 and RDR2 lead Take-Two to $1.38B bookings (but still fell short)

Reasons given by Take-Two CEO Strauss Zelnick for missing the targeted net bookings were "macroeconomic conditions, consumers shifted holiday spending toward established blockbuster franchises and titles that were offered with pricing promotions." To be fair, the company also benefited from the video game consumer preference to established franchises and IPs, but it also had a negative impact on newer and untested brands.

On that note, Take-Two credited its biggest franchises with providing the largest contributions to the company's earnings. Notable points from the report include:

Due to missing projections, Take-Two is lowering its net bookings for the entirety of fiscal year 2023 to $5.2 to $5.25 billion. In relation to this, it will implement a cost-cutting program expected to save $50 million (which is separate from the $100 million savings expected from the acquisition of Zynga Games in 2022).

It is unclear if this cost-reduction will entail layoffs, something that already plagued its competitors such as EA and Microsoft in recent years. According to Chief Financial Officer Lainie Goldstein, the cost-cutting initiative will look at specific opportunities to accomplish the $50 million in savings:

Opportunities include personnel, processes, infrastructure, and other areas, particularly in our publishing and corporate functions.

While the performance of Take-Two's current fiscal year company president Karl Slatoff remarked on their commitment to delivering for the remainder of the fiscal year:

As we focus on the remainder of the year and beyond, we remain steadfast in our commitment to providing the most captivating and engaging entertainment experiences for our audiences across all platforms and geographies. We believe this is the best strategy and path forward to achieving our goals, driving our expected long-term growth, and bringing value to our shareholders.

One notable upcoming title from Take-Two is 2K and Visual Concepts releasing WWE 2K23 for PlayStation and Xbox consoles on March 17, 2023, which will coincide with superstar John Cena celebrating his 20th anniversary in the WWE. However, Take-Two made no mention about Grand Theft Auto 6 or how the adjustments for the remaining fiscal year 2023 will affect GTA 6's future release. Take-Two Interactive is looking forward to releases for the last quarter, such as WWE 2K23 celebrating John Cena's 20th anniversary as a WWE Superstar.

The complete transcript and webcast presentation for the Take-Two Interactive Q3 report can be found at the investor section of its official website.