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The
move follows a similar cut by rival Electronic Arts and shows
how the sector is struggling with a demand drop caused by the
lack of major new titles, lifting of COVID-19 curbs and lower
spending from inflation-hit consumers.
Take-Two said it now expects full-year adjusted sales to be
between $5.4 billion and $5.5 billion, compared with $5.8
billion to $5.9 billion projected previously.
"Our reduced forecast reflects shifts in our pipeline,
fluctuations in FX rates, and a more cautious view of the
current macroeconomic backdrop, particularly in mobile," Chief
Executive Officer Strauss Zelnick said in a statement.
In May, Take-Two closed its $11 billion buyout of mobile-focused
Zynga, merging the publisher of best-selling personal computer
and console games including "Grand Theft Auto" with the creator
of "FarmVille."
But the results show that was not enough to prop up its mobile
gaming business, where player spending is under pressure because
of runaway inflation and the cost of living crisis.
Overall spending on mobile games is estimated to decline 2.3% in
2022, according to data analytics firm Sensor Tower, after a
surge during the pandemic.
Take-Two said its annual forecast also includes a hit of $50
million from a strong dollar. The greenback has surged about 15%
so far this year, impacting global companies across sectors.
Some of the pressure is expected to be offset by strong sales of
"NBA 2K23" - the latest installment in Take-Two's popular
basketball series. The game has sold nearly 5 million units
since its launch in early September.
Take-Two will launch Marvel's "Midnight Suns" in December. Its
development pipeline also includes "Grand Theft Auto VI," which
does not yet have a release date.
On Monday, company executives reiterated that the
highly-anticipated game's development will not be impacted by a
leak in September that exposed some early game footage.
(Reporting by Tiyashi Datta and Aditya Soni in Bengaluru;
Editing by Shailesh Kuber and Rashmi Aich)
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