Take-Two Optimistic About Tariff Impact

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Lately, we’ve been closely examining how the ongoing U.S. tariff situation could affect the gaming industry—spanning everything from consoles and accessories to software. While many within the sector have expressed concerns over potential impacts on consumers and business operations, Take-Two Interactive CEO Strauss Zelnick recently conveyed a notably calm perspective during the company’s investor Q&A call.

Toward the end of the session, Zelnick was asked about his views regarding potential console price hikes linked to tariffs, particularly in light of Microsoft’s recent Xbox Series X|S price increase and the anticipated PlayStation 5 adjustment. His response reflected a measured outlook:

"Our guide is for the next ten months essentially—that's the portion of the fiscal year that remains—and it's very difficult to predict where tariffs will land given how things have fluctuated so far. We feel reasonably confident that our guidance wouldn't be meaningfully affected unless tariffs deviated significantly from what we currently expect. In any case, there's already a substantial installed base for all of our target platforms except for the Nintendo Switch 2, which is still pre-launch. So, we believe we have sufficient visibility to avoid being negatively impacted by any changes."

Zelnick has solid grounds for confidence. As he explained, the majority of games Take-Two plans to release in the near term are slated for platforms that most gamers already own. A marginal shift in console sales either way isn’t likely to dramatically affect their business model. Moreover, a significant portion of Take-Two’s revenue comes from digital content in evergreen titles such as *Grand Theft Auto V*, *Red Dead Redemption 2*, and its mobile portfolio—all of which are immune to physical tariffs.

That said, Zelnick acknowledged the uncertainty surrounding the broader economic environment. Analysts we've spoken with repeatedly emphasize that the tariff landscape remains fluid and unpredictable—a sentiment echoed even at the executive level. This openness to change allows Take-Two to remain agile should conditions evolve unexpectedly.

Prior to the investor call, we had the opportunity to speak directly with Zelnick about the company’s latest quarterly results, including an update on the development timeline for *GTA VI* and his thoughts on the game’s recent delay into next year. Additionally, we covered Zelnick’s positive outlook on the upcoming Nintendo Switch 2 and why he believes it holds strong potential for success.