Take-Two Interactive Software Inc cut its full-year sales forecast on Monday as it has been hit by a stronger dollar and overall industry weakness this year.
Take-Two Interactive Software Inc on Monday lowered its annual revenue forecast. The video game publisher has been hit hard this year by a strong dollar and an industry-wide downturn, as his stock fell 17% in long-term trading.
The move follows similar cuts by rival Electronic Arts, driven by a lack of major new titles, the lifting of COVID-19 restrictions and lower spending from inflation-stricken consumers. It shows how the sector is suffering from declining demand.
Take-Two said it expects adjusted revenue for the full year to be $5.4 billion to $5.5 billion, compared with the previously forecast $5.8 billion to $5.9 billion.
Strauss Zelnick said in a statement, “Our lower forecast reflects changes in our pipeline, exchange rate volatility and the current macroeconomic backdrop, particularly in mobile, where we are more cautious. there is,” he said.
In May, Take-Two completed its $11 billion acquisition for mobile. Zingamerged individual best-selling publishers computer There are also console games such as “Grand Theft Auto” from the creators of “FarmVille”.
But the results show that it wasn’t enough to support it mobile games A business where player spending is under pressure due to rapid inflation and cost of living crises.
Overall spending on mobile games is estimated to fall 2.3% in 2022 after a surge during the pandemic, according to data analytics firm Sensor Tower.
Take-Two said its annual forecast also includes a $50 million hit from the stronger dollar. The US dollar has surged about 15% so far this year, impacting global companies across sectors.
Some of the pressure is expected to be offset by strong sales of NBA 2K23, the latest installment in Take-Two’s popular basketball series. The game has sold nearly 5 million copies since its launch in early September.
Take-Two will reveal Marvel’s “Midnight Suns” in December. Its development pipeline also includes “Grand Theft Auto VI”, which does not yet have a release date.
On Monday, company executives reiterated that development of the highly anticipated game would not be affected by leaks in September that revealed early game footage.
