Grand Theft Auto The Trilogy by Take-Two Interactive Software Inc is seen for sale in a store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly
Feb 3 (Reuters) - Take-Two Interactive raised its annual bookings forecast on Tuesday, betting on strong sales of its premium sports, action and mobile titles as it gears up to launch the highly anticipated "Grand Theft Auto VI" on November 19.
Shares of the company rose over 5% in extended trading.
While "GTA VI" is expected to make the company billions at launch, investors will also look at how developers Rockstar Games plan to update the title post-launch to keep players engaged and spending on its online features.
Take-Two is also benefiting from a steady rebound in the mobile gaming market, with titles such as "Match Factory!" and "Toon Blast" seeing robust growth after a post-pandemic slump.
The videogame publisher now expects bookings of between $6.65 billion and $6.7 billion for its fiscal 2026, compared with its prior forecast of between $6.4 billion and $6.5 billion.
Third-quarter net bookings of $1.76 billion beat estimates of $1.59 billion, according to data compiled by LSEG.
EXECUTIVES ALLAY AI FEARS
Take-Two executives, in the earnings conference call, brushed aside concerns about Google's newly launched AI that can generate interactive worlds, saying it remains an early iteration and is "not even in the same ballpark" compared to a game engine.
The company's shares took a hit on Friday after the report, leading to fears of the technology potentially encroaching on how gaming has been developed for a long time.
The executives added the technology does not replace the creative process, noting that the game development involves many elements beyond "world creation".
"AI can't simply prompt its way to the next Grand Theft Auto," said Joost van Dreunen, games professor at NYU's Stern School of Business.
"Developers like Rockstar spend years on proprietary engine software and painstaking attention to detail, which is why games like Red Dead Redemption II and GTA V hold up a decade later."
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)
