Take-Two Confident Despite Tariff Shifts

Recent discussions have highlighted how ongoing U.S. tariff uncertainties may affect the gaming industry—from consoles and accessories to software. While some express concerns about impacts on consumers and businesses, Take-Two CEO Strauss Zelnick appeared unfazed during today's investor Q&A.

When asked about potential console price hikes and their broader industry implications—referencing Xbox Series increases and an anticipated PlayStation 5 adjustment—Zelnick maintained his company's outlook:

"Our fiscal guidance covers the next ten months, and while tariff fluctuations remain unpredictable, we're confident it won't significantly alter our projections unless policies drastically shift. With established install bases for all target platforms (excluding the pre-launch Nintendo Switch 2), we have sufficient market stability to weather potential changes."

Zelnick's confidence stems from Take-Two's diversified revenue streams. Most upcoming releases target existing hardware, minimizing new console adoption impacts. Additionally, digital revenue from live-service titles like GTA V and Red Dead Redemption 2—alongside mobile operations—remains tariff-exempt.

However, as Zelnick acknowledged, the situation remains volatile. Multiple industry analysts confirm tariff policies are fluid—a reality even Take-Two's CEO acknowledges in his cautiously optimistic stance.

Earlier discussions with Zelnick covered additional topics including GTA 6's delayed timeline and his bullish outlook on Nintendo Switch 2's market potential.