Take-Two sees annual bookings below revised estimates due to GTA VI delay

Take-Two Interactive on Thursday forecast fiscal 2026 bookings below revised Wall Street expectations, signaling that a strong lineup of releases this year may not cushion a hit from the delay of its highly anticipated "Grand Theft Auto VI".

Shares of the company fell 3 per cent in extended trading.

The next installment in the best-selling "Grand Theft Auto" franchise is expected to sell millions of copies and generate billions in the first few weeks. Take-Two's decision to delay the long-awaited game into fiscal 2027 could weigh on its overall bookings for this year, but could benefit from it in the next.

Take-Two recorded a $3.5 billion impairment charge during the fourth quarter as a result of "updating long-term expectations," the company's executives said on a post-earnings call. But they expect to launch 25 titles throughout fiscal 2027 and 2028, including "GTA VI," they added.

Take-Two has other titles lined up for the year such as "Borderlands 4" and "Mafia: The Old Country", but their potentially strong releases are unlikely to stave off a hit from the delay of "GTA VI."

Still, the videogame publisher is expected to deliver growth above the industry rates, in part driven by the upcoming titles such as "Borderlands" and "Mafia," D.A. Davidson & Co analyst Wyatt Swanson said.

The delay of "GTA VI" has led to a wave of release dates for that launch window from publishers looking to capitalize on the absence of Take-Two's likely blockbuster title which would have dominated sales charts.

Persistent inflation and fears of a recession could further add to the company's challenges as gamers, like consumers in other industries, get picky with spending.

The company expects bookings of between $5.9 billion and $6 billion in fiscal 2026, compared with expectations of $6.46 billion, according to an average of analysts' estimates compiled by Visible Alpha that were revised after "GTA VI" was delayed.