Take-Two Remains 'Reasonably Confident' Amid Tariffs

We've frequently discussed how the ongoing U.S. tariff disputes could affect the games industry, touching on everything from consoles and accessories to software. While many are worried about the implications for both consumers and businesses, Take-Two CEO Strauss Zelnick appeared relatively unconcerned about potential tariffs during today's investor Q&A call.

Near the end of the session, Zelnick was questioned about possible console price hikes and how they might influence the gaming ecosystem. This topic came up in light of the recent Xbox Series price increase and the anticipated PlayStation 5 price adjustment.

Zelnick explained that, although the tariff situation remains uncertain, Take-Two's financial outlook is firmly established for the near future:

"Our guidance covers the next ten months—the remainder of the fiscal year—and predicting tariff outcomes is challenging given the ongoing fluctuations. We’re reasonably confident our projections won’t be significantly impacted unless tariffs shift dramatically from current expectations. Moreover, there's already a large installed base for all our target platforms, except for the pre-launch Nintendo Switch 2. Based on our analysis, we don’t anticipate major disruptions from tariff changes."

Zelnick has good reason for his confidence. As he noted, most of Take-Two’s upcoming titles will release on platforms that are already widely adopted. Minor shifts in sales of Xbox Series, PS5, or even the Nintendo Switch 2 aren’t likely to have a major effect. Additionally, much of the company’s revenue is generated through digital sales in live-service games like GTA V and Red Dead Redemption 2, as well as mobile offerings—none of which are affected by tariffs.

Still, Zelnick acknowledged that the situation remains fluid. Over recent months, various analysts have emphasized the unpredictable and evolving nature of tariffs—a reality the Take-Two CEO also acknowledges.

Ahead of the investor call, we spoke with Zelnick about the company’s quarterly performance, including GTA 6’s development timeline and his perspective on the game’s delay to next year. We also covered his Q&A remarks regarding the Nintendo Switch 2 and why he remains optimistic about its launch.