Take-Two 'Reasonably Confident' Amid Tariff Changes

Lately, the ongoing uncertainty surrounding U.S. tariff policies has sparked growing concern across multiple industries—including the video game sector. With potential impacts on everything from console manufacturing to accessories and software distribution, many industry observers are watching closely. However, during Take-Two Interactive’s recent investor Q&A call, CEO Strauss Zelnick expressed a notably calm perspective regarding the potential impact of tariffs on the company's business model.

When asked toward the end of the call about the possibility of rising console prices due to tariffs—and how that might affect consumer behavior and the broader gaming ecosystem—Zelnick offered a measured response. The question referenced Microsoft’s recent price increase for Xbox Series consoles and speculation that Sony could follow suit with a similar adjustment for the PlayStation 5.

Zelnick acknowledged the unpredictability of the current tariff environment but emphasized that Take-Two’s financial outlook remains stable—at least for the remainder of the current fiscal year:

"Our guide is for the next ten months essentially—that's the part of the fiscal year that hasn't elapsed yet—and it's very difficult to predict where tariffs will land, given how things have bumped around so far. We feel reasonably confident that our guide wouldn't be meaningfully affected unless tariffs ran off in a very different direction than we currently expect. In any case, there's already a very substantial install base for all of our target platforms except Nintendo Switch 2, which is pre-launch. So we have, I think, enough insight that we wouldn't be affected by any changes."

Zelnick’s confidence isn’t unfounded. As he explained, the majority of games Take-Two plans to release in the coming fiscal period are intended for platforms that already enjoy widespread adoption. That means fluctuations in new console sales—like those potentially caused by higher prices—are unlikely to significantly disrupt Take-Two’s revenue projections. Additionally, much of the company’s income comes from digital content within long-running titles such as *Grand Theft Auto V*, *Red Dead Redemption 2*, and its mobile portfolio—areas completely unaffected by physical hardware tariffs.

Still, Zelnick made it clear that while the current forecast appears stable, the situation remains fluid. Analysts across the board have echoed this sentiment over recent months, noting that the tariff landscape continues to shift without a clear endpoint in sight. Even so, Take-Two seems well-positioned to navigate whatever comes next.

Prior to the investor call, we had the opportunity to speak directly with Zelnick about the company's quarterly performance, including insights into the development timeline of *GTA 6* and his perspective on the game’s recently announced delay into next year. We also covered Zelnick’s positive outlook on the upcoming Nintendo Switch 2 and why he believes it holds strong potential for both developers and players alike.