Take-Two Forecasts That 76% Of Their Consoles Sales Will Be Digital

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Take-Two Forecasts That 76% Of Their Consoles Sales Will Be Digital

Is this the inevitable decline of physical games?

Laurie Graves·July 6, 2023

Our team at Top Tier List got their hands on the Q4 and fiscal year 2023 conference call of Take-Two Interactive, the second-largest video game company in the world. The call was led by the chairman Strauss Zelnick and the president Karl Slatoff with the CFO Lainie Goldstein. The statements in this document are forward-looking statements which means they include forecasts, estimates, intentions, and beliefs and are there to provide insight into the future of the company.

Major Takeaways

Take-Two’s net booking for the fiscal year surpasses the forecasts.
Digital sales accounted for 74% of console game sales, up from 68% the previous year.
Grand Theft Auto V, Grand Theft Auto Online, Red Dead Redemption 2, and Zynga’s mobile game portfolio played a significant role in driving the success of Take-Two.
Recurrent consumer spending, representing 79% of net bookings, is projected to increase by around 5% compared to the previous fiscal year, emphasizing the importance of sustained revenue streams.

The document says that the total Net Bookings were $5.28 billion, which was better than the forecasted figure of $5.2 to $5.25 billion. During this fiscal year, 74% of console game sales were digital, which was up from 68% last year.

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Strauss was very happy with the performance of Grand Theft Auto V, Grand Theft Auto Online, and Red Dead Redemption 2 and with Zynga’s mobile portfolio. He also talked about how the console’s game sales digitally were up by 3% this quarter. Last quarter it was 75%, but now it is 78%. This upcoming quarter they expect this number to be 79%. Last year during this quarter, it was 77%.

They are expecting net bookings in the range of $5.45 billion to $5.55 billion, and they think that NBA 2k, Grand Theft Auto Online, and Grand Theft Auto V, with Red Dead Redemption 2 and their mobile lineup of games will be the main contributors to this.

Notably, Take-Two expects 76% of console game sales to be delivered digitally, reflecting the industry’s ongoing shift towards digital distribution. Furthermore, recurrent consumer spending, which represents 79% of net bookings, is projected to increase by approximately 5% compared to the previous fiscal year.

These factors demonstrate Take-Two’s strategic focus on digital offerings and recurring revenue streams, positioning the company for continued growth in the dynamic gaming market.