By Zaheer Kachwala
May 21 (Reuters) – Take-Two Interactive forecast annual bookings below Wall Street expectations on Thursday, but reiterated the November 19 launch date for the highly awaited “Grand Theft Auto VI,” sending its shares up around 7% in extended trading.
Investors and analysts are keeping a close watch on the launch of “GTA VI”, as the title is expected to be a cash cow for Take-Two, potentially selling millions of copies and bringing in billions in revenue within days of launch.
The company is looking to replicate and build on the success of the title’s predecessor, “GTA V,” especially its multiplayer component, which has been a consistent source of income through the purchase of in-game currency.
“GTA V” has sold nearly 230 million units since its launch in 2013, executives said on a post-earnings conference call.
Even as the firm faces strong competition from rival publishers Electronic Arts and Microsoft’s Activision Blizzard, “GTA VI” is expected to stand out due to the immense popularity of the franchise and the track record of Rockstar Games, a unit of Take-Two and the game’s developer.
The “GTA VI” launch date “was the primary focus heading into the print, given Rockstar’s history of delaying at the 6-month mark or further out,” said Wedbush Securities analyst Alicia Reese.
Take-Two expects fiscal 2027 bookings of $8 billion to $8.20 billion, compared with analysts’ average estimate of $9.10 billion, according to data compiled by LSEG.
Apart from “GTA VI,” Take-Two’s videogame pipeline includes other premium titles, such as its annual “NBA 2K” basketball games, and new mobile games, which have seen a rebound in spending over the past year.
The company, however, forecast first-quarter bookings of $1.32 billion to $1.37 billion, below estimates of $1.51 billion.
It reported bookings of $1.58 billion in the fourth quarter, beating estimates of $1.57 billion.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shinjini Ganguli)
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