Take-Two CEO Optimistic About Tariff Impact on Gaming Industry

Recent discussions have highlighted how the ongoing tariff uncertainty in the United States could affect the gaming sector, impacting everything from consoles to accessories and software. While some express concerns about the potential effects on consumers and businesses, Take-Two CEO Strauss Zelnick appeared largely unfazed by tariff concerns during today’s investor Q&A call.

Near the call’s conclusion, Zelnick was questioned about potential console price hikes and their broader impact on the gaming ecosystem, particularly in light of the recent Xbox Series price increase and anticipated PlayStation 5 adjustments.

Zelnick emphasized that despite the unpredictable nature of tariffs, Take-Two’s financial outlook remains solid for the near term:

"Our projections cover the next ten months, the remaining portion of the fiscal year, and predicting tariff outcomes is challenging given their volatility. We are reasonably confident that our guidance will hold unless tariffs take an unexpected turn. Moreover, there’s already a significant installed base for our target platforms, except for the pre-launch Nintendo Switch 2. This gives us enough confidence that potential changes won’t significantly impact us."

Zelnick’s optimism is well-founded. As he noted, most of Take-Two’s upcoming game releases will target platforms already widely owned by consumers. A slight shift in Xbox Series, PlayStation 5, or Nintendo Switch 2 sales is unlikely to have a substantial effect. Additionally, a large portion of Take-Two’s revenue stems from digital transactions in titles like GTA V, Red Dead Redemption 2, and its mobile portfolio, which are unaffected by tariffs.

However, Zelnick acknowledged the ongoing uncertainty. Over recent months, analysts have consistently described the tariff situation as fluid and difficult to predict, a perspective even Take-Two’s CEO leaves room for.

In a conversation with Zelnick before the investor call, we discussed the company’s quarterly performance, including updates on GTA 6’s development schedule and Zelnick’s perspective on its delay to next year. We also covered his Q&A remarks about the Nintendo Switch 2 and his enthusiasm for its upcoming launch.