Core Viewpoint - Take-Two has announced the suspension of the development of the Switch 2 version of Borderlands 4, originally scheduled for release on October 3, 2025, now indefinitely postponed [1][8]. Group 1: Development Status - The Switch 2 version of Borderlands 4 has been removed from Take-Two's "upcoming" list, previously marked as "release date pending" [7][12]. - Take-Two spokesperson Alan Lewis stated that the decision to pause development was difficult, emphasizing the company's focus on improving game quality and providing high-quality incremental content while continuing collaboration with Nintendo [1][8]. Group 2: Performance Issues - The game has faced significant performance challenges since its announcement, with feedback from the 2025 Cologne Game Show indicating issues with frame rate, input delay, and graphical quality [1][8]. - Gearbox President Randy Pitchford confirmed that the target frame rate for the game is only 30 frames per second, which may drop in complex scenes [1][8]. - Reports indicate that the game could barely maintain 30 frames per second with four enemies on screen in docked mode, suffering from severe input delay and low render resolution [9].

Core Viewpoint - Take-Two Interactive Software (TTWO.US) reported strong Q3 FY2026 results, with net bookings exceeding analyst expectations, leading to a pre-market stock increase of over 5% to $223.07 [1] Financial Performance - Net bookings for Q3 FY2026 increased by 28% year-over-year to $1.76 billion, surpassing analyst expectations of $1.59 billion [1] - The company recorded a loss per share of $0.50, an improvement from a loss of $0.71 per share in the same period last year [1] Future Outlook - For FY2026, the company raised its net bookings forecast to between $6.65 billion and $6.7 billion, up from the previous estimate of $6.4 billion to $6.5 billion [1] - The highly anticipated release of Grand Theft Auto VI is scheduled for November 19 [1]

Core Viewpoint - Take-Two's CEO Strauss Zelnick expressed that he is not concerned about the impact of Google's AI game model Genie 3 on the company, despite a 10% drop in stock value following its announcement [1][3]. Group 1: Company Response to AI - Zelnick stated that the gaming industry is built on machine learning and artificial intelligence, and the company is excited about new tools that can enhance efficiency [3]. - Take-Two is actively embracing generative AI, with hundreds of pilot projects across various fields, aiming to simplify daily tasks and allow creators to focus on producing exceptional entertainment experiences [3]. Group 2: Market Reaction and Analysis - The launch of Google's Genie 3 on January 30 raised concerns in the industry, leading to significant market fluctuations for gaming companies, including a notable decrease in Take-Two's market value [1]. - Take-Two's President Karl Slatoff highlighted the potential benefits of Genie for developers, suggesting that if the tool proves its value, it could enhance efficiency and quality across the company's operations [3].

Core Viewpoint - The release of Google DeepMind's third-generation visual language model, Genie 3, has led to a significant drop in the stock prices of major gaming companies, raising concerns about the future of AAA game development [1][3]. Group 1: Market Reaction - Following the announcement of Genie 3, Unity's stock plummeted by over 24%, with other major companies like Take-Two, Nintendo, and CD Projekt Red also experiencing declines [1]. - The market's reaction is driven by the perception that Genie 3 can generate high-quality 3D game worlds quickly, potentially threatening traditional game development practices [3]. Group 2: Misconceptions about Game Development - The belief that visual detail generation equates to complete world-building is a misunderstanding; creating immersive game worlds requires more than just visual fidelity [4]. - Game development involves intricate world-building that cannot be replicated solely through AI-generated visuals, as the essence of a game's "life" comes from its depth and complexity [4][12]. Group 3: Limitations of Genie 3 - Genie 3 operates on a frame generation model that lacks the logical consistency and long-term memory required for a cohesive gaming experience, with a memory window of only one minute [8][10]. - The model's probabilistic nature means it cannot maintain the structured, deterministic environments that traditional game engines provide, leading to potential immersion-breaking inconsistencies [11][10]. Group 4: The Importance of IP and Emotional Connection - Players often value the emotional connection to game IPs, which cannot be generated by AI; successful IPs require time, consistency, and creator investment [22][26]. - The long-term development of iconic IPs, such as Mario and GTA, illustrates that emotional resonance and narrative depth are crucial for player engagement, which AI cannot replicate [22][23][27]. Group 5: Future of AI in Game Development - While AI tools like Genie 3 can enhance efficiency in game development, the creative direction and integration of AI-generated content will still rely on human designers [29][30]. - AI is positioned as a powerful tool for game developers, but the true artistry and cultural significance of games will continue to depend on human creativity and oversight [31].

Core Insights - Take-Two Interactive Software reported a 28% year-over-year increase in net bookings for Q3 of fiscal year 2026, reaching $1.76 billion, exceeding analyst expectations of $1.59 billion [1] - The company recorded a loss of $0.50 per share, an improvement from a loss of $0.71 per share in the same period last year, although it was higher than the analyst forecast of a $0.39 loss per share [1] - CEO Strauss Zelnick indicated strong momentum in various business segments and highlighted the anticipated release of Grand Theft Auto VI on November 19, projecting record net bookings for fiscal year 2027 [1] - For fiscal year 2026, the company expects net bookings to be between $6.65 billion and $6.7 billion, an increase from the previous forecast of $6.4 billion to $6.5 billion [1]

For the quarter ended December 2025, Take-Two Interactive (TTWO) reported revenue of $1.76 billion, up 27.9% over the same period last year. EPS came in at $1.23, compared to $0.72 in the year-ago quarter.The reported revenue represents a surprise of +10.95% over the Zacks Consensus Estimate of $1.58 billion. With the consensus EPS estimate being $0.83, the EPS surprise was +48.09%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

分组1 - Take-Two Interactive reported quarterly earnings of $1.23 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and up from $0.72 per share a year ago, indicating strong performance [1] - The earnings surprise for this quarter was +48.09%, and the company has surpassed consensus EPS estimates in all four quarters over the past year [2] - Revenues for the quarter reached $1.76 billion, surpassing the Zacks Consensus Estimate by 10.95%, and up from $1.37 billion year-over-year, demonstrating consistent revenue growth [3] 分组2 - Despite the strong earnings report, Take-Two shares have declined approximately 13.4% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [4] - The company's earnings outlook is mixed, with current consensus EPS estimates of $0.41 for the upcoming quarter and $3.37 for the current fiscal year, indicating potential for future performance [8] - The Gaming industry, to which Take-Two belongs, is currently ranked in the bottom 23% of Zacks industries, suggesting that the overall industry outlook may impact the stock's performance [9]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Registrant's Telephone Number, Including Area Code: (646) 536-2842 Securities registered pursuant to Section 12(b) of the Act: Title of each cl ...

Financial Data and Key Metrics Changes - The company reported net bookings of $1.76 billion for Q3 2026, exceeding the high end of guidance by a significant margin [7][17] - GAAP net revenue increased by 25% to $1.7 billion, while cost of revenue rose by 26% to $754 million [18] - Operating expenses increased by 10% to $984 million, with management basis operating expenses rising by 13% year-over-year [18][21] - The company raised its full fiscal year net bookings outlook to $6.65-$6.7 billion, representing an 18% growth compared to fiscal 2025 [7][19] Business Line Data and Key Metrics Changes - The mobile business saw a 19% year-over-year increase, with Toon Blast growing by 43% and Match Factory by 17% [8][18] - NBA 2K series grew by 30%, while Grand Theft Auto Online increased by 27% [10][18] - Recurrent consumer spending rose by 23%, accounting for 76% of net bookings [17][19] Market Data and Key Metrics Changes - The mobile direct-to-consumer business achieved its strongest quarter on record, driven by enhancements in personalized offers and flexible pricing [9] - Advertising revenues grew by 10% year-over-year, supported by higher average revenue per daily active user [9] Company Strategy and Development Direction - The company is focusing on leveraging AI technologies to drive efficiencies and enhance creative processes [12][28] - The upcoming release of Grand Theft Auto VI is expected to significantly impact future financial performance and establish a higher financial baseline [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum of the business and projected record levels of net bookings for fiscal 2027 [12][23] - The company anticipates that the release schedule will drive sequential growth next year, establishing a new baseline for future performance [62] Other Important Information - The company plans to support organic growth while remaining selective in pursuing inorganic growth opportunities [41] - The regulatory environment is becoming more favorable for direct-to-consumer strategies, which are expected to enhance margins [35][89] Q&A Session Summary Question: Concerns about AI's impact on the business - Management clarified that the video game industry has always utilized machine learning and AI, and they are optimistic about the opportunities AI presents for efficiency and creativity [26][27] Question: Mobile business growth initiatives - Management highlighted the importance of creating hits in the mobile space and the success of their Zynga team in doing so [32][33] Question: Engagement and monetization strategies for NBA 2K - Management emphasized the importance of continuous consumer engagement and the potential for international expansion as key growth opportunities [45][48] Question: Capital allocation priorities - Management outlined three main uses for capital: supporting organic growth, pursuing selective acquisitions, and returning capital to shareholders [41][42] Question: Future of GTA Online post-GTA VI release - Management indicated that they will continue to support GTA Online, as the community remains engaged and responsive to new content [58] Question: Mobile advertising growth - Management attributed the growth in mobile advertising to the strategic addition of ad units and effective monetization without disrupting user experience [56]

Financial Data and Key Metrics Changes - The company reported net bookings of $1.76 billion for Q3 2026, exceeding the high end of guidance by a significant margin [7][17] - GAAP net revenue increased by 25% to $1.7 billion, while cost of revenue rose by 26% to $754 million [18] - Operating expenses increased by 10% to $984 million, with management basis operating expenses rising 13% year-over-year [18][21] - The company raised its full fiscal year net bookings outlook to $6.65-$6.7 billion, representing an 18% growth compared to fiscal 2025 [7][19] Business Line Data and Key Metrics Changes - The mobile business saw a year-over-year growth of 19%, with Toon Blast growing 43% and Match Factory increasing by 17% [8][18] - NBA 2K series grew by 30%, while Grand Theft Auto Online increased by 27% [18][10] - Recurrent consumer spending rose by 23%, accounting for 76% of net bookings [17][18] Market Data and Key Metrics Changes - The mobile direct-to-consumer business achieved its strongest quarter on record, driven by enhancements in personalized offers and flexible pricing [9] - Advertising revenues grew by 10% year-over-year, supported by higher average revenue per daily active user [9] Company Strategy and Development Direction - The company is focusing on leveraging new technologies, particularly AI, to drive efficiencies and enhance creative processes [12] - The upcoming release of Grand Theft Auto VI is expected to significantly impact future net bookings and profitability [12][19] - The company aims to maintain a balance between organic growth and selective acquisitions, emphasizing the importance of creativity and innovation [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum of the business and the potential for record levels of net bookings in fiscal 2027 [12][23] - The regulatory environment is becoming more favorable for direct-to-consumer strategies, which are expected to enhance margins and profitability [9][35] Other Important Information - The company plans to provide its initial three-year pipeline for fiscal 2027 through fiscal 2029 in the Q4 results in May [16][23] - The release slate for the upcoming quarter includes several key titles, such as Sid Meier's Civilization VII and WWE 2K26 [22] Q&A Session Summary Question: Concerns about AI's impact on the business - Management clarified that the video game industry has always utilized machine learning and AI, and they are optimistic about the opportunities AI presents for efficiency and creativity [26][27] Question: Mobile business growth initiatives - Management highlighted the importance of creating hits and supporting talent, which has led to significant growth in mobile titles [32][33] Question: Capital allocation priorities - Management stated that capital will be used for organic growth, selective acquisitions, and returning capital to shareholders through buybacks [41][42] Question: Engagement with GTA Online - Management noted that both GTA V and GTA Online are seeing substantial engagement, with new content updates driving continued interest [39][86] Question: Future of GTA Online post-GTA VI release - Management indicated that support for GTA Online will continue, as the community remains engaged and new content is consistently delivered [58] Question: Mobile advertising growth - Management attributed growth in mobile advertising to the strategic addition of ad units and effective monetization without disrupting user experience [56] Question: Insights on user-generated content and developer economics - Management expressed interest in user-generated content and its potential to enhance engagement while maintaining a focus on high-quality entertainment [81][82]