(Reuters) -Take-Two Interactive Software forecast its fourth-quarter bookings below estimates on Thursday, in a sign of slower spending on its popular gaming titles as consumers grapple with an uncertain economy marked by high inflation.
Shares of the videogame publisher, however, jumped more than 5% in extended trading, after it reiterated that its highly anticipated “Grand Theft Auto VI” is set to launch in the fall of 2025.
“The lack of news (on GTA VI) had investors concerned that it might slip, so this is good news,” Wedbush Securities analyst Michael Pachter said.
Take-Two also reiterated its expectation of growth in net bookings in fiscal 2026 and 2027.
The company expects bookings to be between $1.48 billion and $1.58 billion for the fourth quarter, compared with analysts’ average estimate of $1.54 billion, according to data compiled by LSEG.
It reported third-quarter bookings of $1.37 billion, missing analysts’ estimate of $1.39 billion.
The videogame industry has experienced two tumultuous years marked by industry-wide layoffs, studio closures and project cancellations, owing to high borrowing costs and weak sales.
Analysts and research firms expect the industry to get a leg up this year from the launch of Nintendo’s new Switch console and Take-Two’s “GTA VI”.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)
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