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Take-Two 'Reasonably Confident' Amid Tariff Changes

Author : Grace
Jul 01,2025

Lately, we’ve been closely examining how the ongoing U.S. tariff uncertainty could affect the gaming industry—ranging from hardware and accessories to software distribution. While many within the sector have expressed concern over potential impacts on both consumers and business models, Take-Two Interactive CEO Strauss Zelnick appeared notably composed during today’s investor Q&A session when asked about tariffs and their possible consequences.

During the final portion of the call, Zelnick was questioned specifically about his stance on rising console prices and how that might influence the broader gaming market. The inquiry referenced Microsoft’s recent Xbox Series X|S price increases and speculation around a potential PlayStation 5 price hike in response to production costs and tariff pressures.

Zelnick acknowledged the unpredictability surrounding trade policy but emphasized that Take-Two’s financial outlook for the remainder of the fiscal year remains stable:

“Our guidance covers essentially the next ten months—the part of the fiscal year that remains—and it's difficult to predict exactly where tariffs will settle, given the volatility we've seen so far. However, we feel confident our guidance won’t be significantly impacted unless tariffs shift dramatically from current expectations. Moreover, there is already a large installed base across all of our key platforms, with the exception of the Nintendo Switch 2, which is still pre-launch. We believe this gives us sufficient visibility to manage any potential changes.”

Zelnick has good reason to feel secure. As he pointed out, most of Take-Two’s upcoming game releases are designed for platforms that are already widely owned. Even if console adoption fluctuates slightly due to pricing shifts, it’s unlikely to have a major effect on the company’s performance. Additionally, a significant portion of Take-Two’s revenue comes from digital sales and live services such as *Grand Theft Auto V*, *Red Dead Redemption 2*, and its mobile portfolio—areas entirely unaffected by physical tariffs.

That said, Zelnick did acknowledge the fluid nature of the situation. We’ve spoken to multiple analysts recently about the topic, and they all agree: the tariff landscape continues to evolve rapidly and remains difficult to forecast. Even at the executive level, flexibility and caution remain key.

Prior to the investor call, we had an exclusive conversation with Zelnick about Take-Two’s quarterly results, including details on the development timeline for *GTA 6* and his perspective on the game’s recent release delay into next year. We also covered Zelnick’s positive outlook on the Nintendo Switch 2 and why he believes the new platform holds strong potential upon launch.

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