Take-Two Confident Despite New Tariffs

We've been frequently discussing how the ongoing tariff uncertainty in the United States could affect the gaming industry—from consoles to accessories and software. While many have expressed significant concern about the impact on both consumers and businesses, Take-Two CEO Strauss Zelnick appeared relatively unconcerned about potential tariffs during today's Q&A session with investors.

Near the end of the call, Zelnick was specifically asked whether he was worried about possible console price increases and their broader effect on the gaming ecosystem. This refers to the recent Xbox Series price hike and the anticipated PlayStation 5 price increase that may follow.

According to Zelnick, despite the confusing back-and-forth on tariffs, Take-Two’s financial outlook remains firmly set, at least for the coming year:

"Our guidance covers the next ten months—essentially the portion of the fiscal year still ahead. With all the fluctuation so far, it's quite difficult to predict exactly where tariffs will land. We're reasonably confident our guidance won’t be significantly impacted unless tariffs shift dramatically from current expectations. Moreover, there’s already a substantial installed base for all our target platforms except the pre-launch Nintendo Switch 2. Given our current insights, we expect minimal effect from any tariff-related changes."

Zelnick’s confidence is well-founded. As he noted, most of Take-Two’s upcoming releases are for platforms that consumers already own. Minor shifts in Xbox Series, PS5, or even Nintendo Switch 2 sales aren't likely to cause major disruption. Additionally, a significant portion of Take-Two’s revenue comes from digital purchases in ongoing titles like GTA V and Red Dead Redemption 2, as well as its mobile division—areas that aren’t directly affected by tariffs.

Still, as Zelnick acknowledged, the situation remains fluid. We've consulted multiple industry analysts in recent months, and they've consistently emphasized that tariff conditions are both volatile and unpredictable—a reality even the Take-Two CEO is accounting for.

Ahead of the investor call, we spoke directly with Zelnick about the company’s quarterly performance, including updates on GTA 6's development timeline and his perspective on the game's recent delay into next year. We’ve also covered Zelnick’s comments on the Nintendo Switch 2 during the Q&A and explored the reasons behind his optimism regarding its upcoming release.