We have recently written a lot about how ongoing tariff disruption in the US could impact the gaming industry, from consoles to accessories. And while some people seem quite concerned about how this will affect both consumers and businesses, Take-2 CEO Strauss Zelnick seemed relatively unstable in the idea of tariffs on today’s Q&A calls with investors.
Towards the end of the call, Zelnick was asked if he was particularly concerned about potential console price increases and the impact on the overall game ecosystem. This mentioned the recent price bumps on Xbox Series consoles and the expected increase in PlayStation 5 afterwards.
Zelnick thinks it’s confusing like tariffs are coming back and forth, but Take Two’s financial guidance is set quite stone at least next year.
“Our guide will be for the next 10 months. Essentially, this is part of a fiscal year that hasn’t passed yet, and considering how things have hit so far, it’s very difficult to predict where the tariffs will land. Our guide is sure that our guide will not be significantly affected unless it is heading in a very different direction in the current direction, unless it is heading in a very different direction. We will launch ahead of time.
Zelnick has a reason to be confident. As he points out, most games will be released in the fiscal year next year. Those who have bought or haven’t bought the Xbox series, PS5, or Nintendo Switch 2, are not going to make a big difference. Furthermore, much of Take-Two’s revenue comes from digital purchases in ongoing games such as GTA V, Red Dead Redemption 2 and its mobile business, and is not subject to customs duties at all.
Still, as Zelnick points out, everything is still in the air. We have spoken with analysts many times over the past few months about the tariff coverage, and they all have reiterated that things are constantly changing and unpredictable.
We spoke directly to Zelnick ahead of investors’ calls about the company’s quarter, including discussions on the development timeline for the GTA 6 and Zelnick’s thoughts on the recent delays in the game until next year. He also wrote about Zelnick’s Q&A comments on Nintendo Switch 2 and why he is optimistic about the release.
Rebekah Valentine is a senior reporter at Passthecontroller. You can find her posts at Bluesky @Duckvalentine.bsky.social. Do you have any tips for the story? Send to [email protected].
