Take-Two Outlook Down after Midnight Sun and other commercial misfires

News

Not even Captain America could save this fiscal quarter.

As the world tries to distance itself from the culmination of Covid’s countless delayed game releases, the impact is still being felt across the industry. Case in point: Take-Two Interactive Software Inc, the publishing giant behind franchises like Grand Theft Auto and NBA 2K, lowered its guidance for the quarter after its recent releases fell short of expectations.

Speak with BloombergTake-Two announced in a statement that “bookings, which exclude deferred sales from online purchases, will be $1.31 billion to $1.36 billion for the fiscal fourth quarter ended March.”

That falls well short of an analyst estimate of $1.49 billion compiled by Bloomberg, following a previous annual forecast cut in November. It’s also piling up after a disappointing third quarter that saw net bookings of $1.38 billion fall short of analyst forecasts of $1.45 billion.

Chief Executive Officer Strauss Zelnick told Bloomberg: “We’re taking another close look at our cost structure. I have to do better and push the things that we can address that don’t get in the way of making great products that our consumers love, and that’s our daily mission.”

Zelnick pointed to delayed release plans that have created a gap between established blockbuster titles and an economic downturn that has led to a drop in spending across the industry. Bloomberg’s Jason Schreier also revealed that during his conversation with Zelnick he was told that Marvel’s Midnight Suns wasn’t the commercial success they expected.

With such a strong license behind it, there’s every reason to believe that the tactical crossover title can pull itself out of the hustle and bustle. However, it is somewhat surprising to learn that its positive critical reception has not yet translated into sufficient market numbers.