Recent discussions have spotlighted the potential impact of the ongoing tariff disputes in the United States on the gaming industry, affecting everything from consoles to accessories and software. While many are concerned about the ramifications for both consumers and businesses, Take-Two Interactive's CEO, Strauss Zelnick, appeared relatively unfazed by the prospect of tariffs during a recent Q&A session with investors.

When asked specifically about the potential for console price increases and their broader impact on the gaming ecosystem—particularly in light of the recent Xbox Series price hike and the anticipated PlayStation 5 increase—Zelnick provided reassurance. He emphasized that Take-Two's fiscal projections for the next ten months are solid, despite the unpredictable nature of tariffs:

"Our guide is for the next ten months, essentially, that's the part of the fiscal year that hasn't elapsed yet, and it's very difficult to predict where tariffs will land, given how things have bumped around so far. We feel reasonably confident that our guide wouldn't be meaningfully affected, unless tariffs ran off in a very different direction than we currently expect. In any case, there's already a very substantial install base for all of our target platforms except Nintendo Switch 2, which is pre-launch. So we have, I think, enough insight that we wouldn't be affected by any changes."

Zelnick's confidence stems from the fact that most of Take-Two's upcoming releases are targeted at platforms that already boast a significant user base. The potential impact of a few consumers not purchasing new consoles like the Xbox Series, PS5, or the upcoming Nintendo Switch 2 is minimal. Moreover, a substantial portion of Take-Two's revenue is derived from digital sales within ongoing titles such as GTA V, Red Dead Redemption 2, and their mobile gaming division, which are not subject to tariffs.

Nevertheless, Zelnick acknowledges the fluidity of the situation. Analysts have consistently noted the unpredictability of tariffs, a sentiment echoed by Zelnick himself, who leaves room for potential shifts in the tariff landscape.

In a pre-call interview, we delved into Take-Two's quarterly performance with Zelnick, discussing the development timeline for GTA 6 and its recent delay to next year. Additionally, we covered Zelnick's comments during the Q&A about the Nintendo Switch 2, and his optimism regarding its launch.