.August 9, 2024 02:41:10 AM

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) expects second-quarter bookings to fall short due to a slowdown in consumer spending, but remains optimistic about future growth, especially with the upcoming launch of “Grand Theft Auto VI.”

The company’s stock rose over 5% in extended trading as investors responded positively to the long-term outlook, driven by the highly anticipated release of “GTA VI” and a robust development pipeline planning around 40 titles through fiscal 2027.

Despite near-term challenges, Take-Two projects second-quarter bookings to range between $1.42 billion and $1.47 billion, slightly below analyst estimates, reflecting declining recurrent consumer spending on “GTA Online.”

Take-Two reassures stakeholders that ongoing video game performers strike has not impacted title development, with the company posting a surprising first-quarter profit of 5 cents per share on an adjusted basis, positioning itself for future success through strategic focus on long-term growth and innovation.