Take-Two Confident Tariffs Won't Impact Business

Recent U.S. tariff uncertainties have raised questions about potential effects on the gaming industry—from consoles to accessories and software. While some express concerns over consumer and business implications, Take-Two CEO Strauss Zelnick appeared relatively untroubled during today's investor Q&A session.

Zelnick's Perspective on Console Price Hikes

When asked about potential console price increases and their broader impact—including Microsoft's Xbox Series price hike and a possible PlayStation 5 adjustment—Zelnick remained measured in his outlook:

"Our guidance covers the next ten months—the remaining fiscal year—and predicting tariffs' exact impact is challenging given ongoing fluctuations. That said, we're confident our forecasts won't be materially affected unless tariffs drastically deviate from expectations. Additionally, most of our target platforms (except the pre-launch Nintendo Switch 2) already have substantial installed bases. This gives us reasonable visibility into potential outcomes."

Zelnick's confidence stems from Take-Two's diversified revenue streams. Much of the company's earnings come from digital purchases in live-service titles like GTA Online and Red Dead Online, as well as mobile gaming—none of which are tariff-sensitive. Even if console pricing shifts slightly, the existing hardware ecosystem reduces reliance on next-gen adoption.

Uncertainty Remains, But Fundamentals Look Strong

While Zelnick remains cautiously optimistic, he acknowledges that the tariff landscape remains unstable. Industry analysts have repeatedly cautioned that the situation remains fluid—a reality even Take-Two's leadership concedes.

Ahead of the investor call, we spoke with Zelnick about Take-Two's latest quarter, including Grand Theft Auto VI's delayed 2025 release and his perspective on the Nintendo Switch 2's potential. For more on those topics, check out our in-depth coverage of Zelnick's insights.