Take-Two Interactive Software (TTWO) 5 Nov 202020 Q2 Earnings call transcript

Greetings and welcome to Take-Two Interactive Software Second Quarter Full Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. President Relations Vice Corporate Senior Diamond, of and Investor Communications. Hank

fiscal for Welcome Lainie for Financial conference of by September Strauss and and be afternoon. and Two's Executive call joining XXXX. the XXXX Today's XXth, Officer. thank quarter Zelnick, results Good President; led its Officer; Chief you Take-Two's Karl Goldstein, will our ended our discuss call second Chairman Take year Chief to Slatoff,

following questions will remarks. our available session answer the We prepared your during be Q&A to

Before historical made we beliefs information currently to the us. statements like by and federal remind everyone this call forward-looking that during assumptions on begin, I'd considered of under statements our that facts statements These to based made are available forward-looking management laws. not as securities are as are well

our forward-looking These obligation have may variety significantly Report from Form numbers no We today on most all recent on factors forward-looking are that including update otherwise important in year-over-year. of all including are with vary Annual to a Actual results based in the statements SEC, filings these the factors. company's risks operating summarized to statements. these be will Risk Form section and also unless and report entitled on the the note Factors. stated XX-Q, are I'd quarterly GAAP discussing we XX-K like comparisons described

to management to internally are performance. outlook order press Additional operating uses the our results and that our contained in our details our results our actual regarding release, including GAAP evaluate items in adjust financial

comparable GAAP release measure non-GAAP a the Our most financial also of any contains press reconciliation measure. to

and outlook. visually our website presents have posted our slide a In to deck addition, that financial results we

our www.takeXgames.com. and be obtained release now, turn over to website SEC may I'll press filings the call the Our at Strauss. And with from

you like express immensely caring entire been behalf sympathies thank who grateful team, our challenging us remain our global and I'd world shared significantly begin acknowledging to by by in results second afternoon I'd joining in shall to to time affected management frontlines On navigate of those Hank. Good to our in crisis who've hope pass. today. need that like on exceeded and the pleased continued our the serves operating for Thanks pandemic. deepest momentum I'm the those that everyone report times. We that expectations. quarter, positive and helping these the for this

results Editions the stellar Definitive outperformance PGA NBA XKXX, Trilogy. and by were highlighted of XK, Tour the and Mafia: Our Mafia:

a entertainment On and organization. teams basketball the One, proud over latest to to ability the launch to remarkable times for Xbox XKXX simulation X, Switch, leading units. our NBA The our PlayStation start our Concepts of PC, XKXX, the embody our innovation, bookings industry creativity, has Nintendo audiences challenging of experiences and X net quality efficiency. in professionalism Visual passion To-date, of NBA outperformed the was our is core expectations. that title and off a from the million deliver September world of Our reflection have and XK Stadia. sold highest entire throughout installment tenets our in during Xth, and the these series title immensely I'm

increase significantly As as up XKXX with NBA team bookings XKXX XK more engagement Moreover, played with and continues Consumer compared with expectations users, game, growing have users in and the compared net the period. NBA NBA series second XX%. engaged XXXX, user users deeply XX% significantly. average per exceeded my quarter same NBA to incredible users, active grew consumer career my games been the fiscal daily an with for recurrent the XX% growing spending XK of to our with

beloved franchise. delivering will platforms, XK for of Theft sold successful and another now units, continues in remains like release, over XXX I'd initial in one after all and shortly. its years Grand congratulate to million iconic Karl XKXX has and NBA to grow title which The Visual most entertainment. Seven for the V this audience. of next-gen in its discuss Concepts week, Auto Next to launch outstanding will entry experiences

consumer outperformed on recurrent Grand spending terms Theft quarter addition, players second titled was our In the and quarter players. ever, second Online Auto in both active of best new forecast and

Los open creator, new Games of more. During the for vehicles, August, and battles, array of featuring Co-Op month the Theft Grand Special missions, Rockstar an wheel the released race Santos Online, Auto business Summer racetrack,

in spending game growing Dead growth from recurrent Engagement in was growth title to including net to the a increase Online expectations to-date XX%. units bookings Redemption full an new in and new Redemption with over grew consumer to XX% also continue continues and and Red Dead XXX% Red outstanding Theft surpassing fiscal million from has on net Red outperformed the XX%. players sold record expect sales. in with Net Dead bookings We X XXX% establish audience Furthermore, Online X XXXX. title XX Grand bookings grew Auto in worldwide.

Games our PlayStation in XKXX was million and exceeded with Tour coming Outlaw summer and expectations has sports Pass players by further XK the Online Stadia. excited PC, USA Switch, According the engaged. both will camera Today During -- our Throughout Golf the late X and new Naturalist fun, Xbox being with animals into Nintendo Informer, updates events, edition year, One, Digest, including has today Games enhanced and by units. an to including and of to returning critics, new Game legendary as Rockstar and realistic, as and new free well sold a The HB Tour for engaging XKXX content Dead new PGA specialist entry including Developed consumers category. Number more Studios, of more, to PGA universally lauded keep support Metacritic, Dead the latest missions, to is incredibly the offerings Online golf for and title new and the update, Tour console X, fastest to HB Rockstar post the The selling two the the to and highest Red content Auto years Outlaw Pass simulation continue simulation with poaching study game to I'd addition, over XK rated second the units role teams the XKXX additional golf the ability over title current In and Group, roam PGA XX the was quarter, past support and Theft added launch for the Grand weapons, Red hunt, including Three. Studios advanced track, Online generation. game buy of according congratulate continuing content. like the and in to MTD of to release

quarter, our is Battleground, game WWE featuring PlayStation for Stadia. brawling style XK offerings exceeded completely The very a second XK launch During a wrestling and casual X, our both WWE Xbox and Switch, released expectations play title new pleased Nintendo title arcade over content. the WWE supported expand and the with and with also diehard to with We're fans provides PC, up action post has gamers top experience. that being an ONE, pick

critical addition Definitive comprehensively ground the expectations ONE, and available release significant Mafia Definitive sold Edition The To-date, PlayStation up. sales of featuring was from XK Edition these the has all the In individually received and Editions million title of The period, X, Mafia: as the editions are three collectively PC, which for Mafia: during our of the X release acclaim in exceeded full remade completes X, Definitive Trilogy. Trilogy, units. of Mafia: definitive or titles. titles a X Mafia and Mafia, over collection part are Mafia Xbox

be the their Peril for Gorgon, award-winning RPG, Private label and in Worlds a the The X a of narrative first expansions has Outer Outer now Division, outperform sold during individually expansion Gorgon discount Entertainment. over can million released to is that Expansion bundled units. Turning expectations or on the The from purchased at Pass. two Outer our Obsidian to second on continues Worlds in quarter, The Worlds Peril

by by enhanced Point's results a VI. X, Social quarter second Sid and Borderlands led Meier's Our were other Civilization offerings of games, mobile variety also

accounted bookings. XX% During of quarter, grown consumer the expectations exceeded spending second and for XX% net recurrent our

grew led significant the grossing in The XX% net bookings enhanced offerings new our innovative grew Dead downloaded title net mobile Word outperformed bookings in users. more outperformed quarter. Legends, one will VI. delivered the than games on content XK, Add mobile coming and the to is during fresh sports years. studio experiences Social deliver and China free-to-play consumer contributor Online and sports during XX%. popular with now remains to to In remains games our Live matching XXX% the XK virtual for XK's by million currency The Auto second the pipeline Town events, record by game the Meier's grew Red Later outperformed XX entertainment a and content, and the offerings; the following China XX title Chef, Theft in experience launch to boost addition previous in Borderlands broad X Civilization WWE highest the engagement XX%. more NBA million Points' second of month registered online also has Online, quarter, invest new and recurrent Monster PC than this City, XX the planned Dragon number free-to-play times Sid NBA Season for in games more spending and than customer Tasty results. Online, achieved been XK and its The including quarter Life continues was and title. World SuperCard enhance game. expectations in Series for of live Grand And growing category, and

have printed Two and over times. They're has its year, a Co., XXXX, and the to long near-term part performance XXX hunts in includes known core unique games downloaded a for ongoing over as Two long-term in fiscal to of hits; been Founded In mobile Playdots' the Playdots, mobile the ago for of and net throughout of intellectual billion studio leader for expected and York offerings, diversify selectively mobile and live to of million The been consumer three owned than and audiences bookings Playdots New times outlook record of puzzle $X years meaningful the we're games, numerous builds are as we back for over strengthen expect Dots, deeply its outlook improved thoughtful downloaded standing property, better scavenger designs. our City, XX September, Dots, world. half which with we our best portfolio to increasing driving continues launch engage As social strategy & Dots genre. which deliver since and our Dots, acquired for has result million of such a further expand and new engagement. which which quarter and XXXX strategy are that in our six features ops the technology addition to leaderboards, based collectively second growth

thrilled create new welcome since to Playdots as and and offerings on addition, which to focused an next generation. very of promise We're development to provide anticipated two continue about XK they've marked inception. the gaming family existing our We're their from in both and we'll have our on pipeline of to bears and platforms our share the next It the Sony enter pleased step. of properties Playdots done and more Nir history business. launches by are to will positive better advances IP of the team to eagerly to In this latest And will our contributions our remain and long-term to world-class new Efrat will with Karl industry. the and audiences. their the noting Microsoft teams take potential in the excited era next captivate week new this technological exciting engage for The entire platforms prepared development --

will the appetite seen been bodes consumers' months, stronger. the upcoming believe for the and giving several most gift participation with we've popular that over for never for interactive As among holiday has interactive the gaming that entertainment platforms, in fervor this season entertainment trend We new items. coupled well past be

biggest Looking from history, ahead strongest development franchises, new its IP. well sequels the as including exciting as pipeline Take-Two in our as

superbly remains and enterprise trends increase the and I'll both great our shareholders growth over our the In positive through Karl. creatively, our financially industry selective to in opportunities. We to over organically inorganic strides the continue scale deliver many the now of turn long-term. positioned make closing, on accretive to call and returns for capitalize to in operationally, company to our

our continuing begin I'd that by record results to strong and teams a their for Strauss. to stellar up year lining achieving deliver are bookings. Thanks net for thanking like work

recent the with coupled ever driving success more and best collaboration, of the our culture experiences, to releases. Our upcoming engage creating I'll the commitment is and ongoing to before. our with discuss company's ability deeply entertainment now audiences than

next with about teams Through intellectual our renowned excited greater we development robotic have introduction engage audiences edge are mentioned, new even captivate an Strauss As platforms. and leading week's properties. and franchises gaming of very new ability to two platforms, new our these

launch popular the for XK's was and up NBA successful once will standard We and are platforms. at consoles thrilled the both XK and most for to deliver again ground franchises built Borderlands for XKXX NBA from simulations. sports next-generation redefine

legend game. and NBA the provide both to unparallel, Edition, generation will excellence with to addition access NBA basketball loading current game, In a Forever to Wallet the and generations speeds, bridge including and XKXX graphics of of console Mamba be introduce Bryant's with Kobe seamless new initiatives Furthermore, which several lifetime achievement XKXX console players MyTEAM current within will versions the celebrated the same NBA families. would and next Shared VC Cross-Progression with

allowed for the park for the each probably the forward over virtual next-gen execution Xbox exclusive evolved XKXX introduced to next-gen other will X basketball will able so All And concepts a bolder and in for times online player environment the years of as free experience City, XKXX console than will a on neighborhood. family into download who based our including by in same been growing add that the completely PSX consoles second Just immersive experience now players bigger player optimized creating only be co-op authentic and experience Originally more free. next-gen against for Xk we compete XK to on NBA NBA which on This trailer of yesterday, visual game and screen push single quickly One gen introduced four the has frames next-gen what experience. for three the Mayhem many consoles It's fully NBA per most possible support ever XX park own City, has and before. upgrade the Borderlands have the overhaul helped larger number competitive next-gen the XK featuring at outside is community. to co-op. to and is a ambitious be online and released consoles. within the resolution basketball community a features, community of upgrade split exclusive plus current

take XXXX the fiscal addition, announced Games has half V they the of second iconic Grand to XXXX. new In generation Theft consoles year Rockstar their bring that Auto will of calendar in next-generation during technical The versions game of the latest game performance and ever. advantage hardware, improvements, making than will feature responsive a full visual of the more upgrades range to enhancements of the beautiful and more

new Theft calendar coming Auto this also consoles continue engagement Theft V details Auto our new Online community be a versions second consumer for consoles the will on generation are with more with the version will Grand the launch evolving for content, month X their including key will standalone PC. do ahead. exclusive to free term on creative priority a through available three the For this. be Online, additional exclusively Grand after remains which Grand strategic more of and in the world PlayStation months. will There organization. half strive of our the Auto next myriad team ever Games long our There Rockstar ways Driving during titles that first updates, initial new to in of the the of share Theft of new journey on XXXX,

goal some Last an updates add we end, far for our of year. update XKXX expectations, Two quick themed month, released recently Players exceed PGA to Halloween our key popular Three-Hole focused Studios Tour giving PGA holiday a games on and allows To play update, The importantly, the golf players players are worthy are we expect ago, for two always launched Matchmaking multiplayer additional time round on HB content money. their to and array the with of titles. courses. be players and XKXX. and with to XK Tour their content customize team that However, friends. of designing cosmetic can throughout simulation weeks fun released of released for the experiences that items the featuring

title Agency to partnership development games critically Private based is PSX all Space physics Space for update with superstars Division, action. available month, addition, intercept games XK of will adding Horizon during The we'll a their the year in made Simulation and for for the the players incredibly Tomorrow that remains throughout and of the XK hard a legends after acclaimed out Division for will European Game. December work Space in which will studio Battlegrounds. the release on share More XXXX. update new in the initial The launch outrageous make agency's available update their XK X weeks. the be Kerbal of space strong. to the new exploration and ring to with at In of for features more details Share Kerbal wrestling planned new and now first additional Xbox superstars Private Borderlands Program fiscal contributions free is remained update the WWE Program One. coming than and Space celebrates released release in engagement title

Next add-ons. will for a XK skill strategy X and next the play each launch new gen which two titles arms popularity versions Season introducing more. season game. a of all called pass will The include add The immense cut and of race, on season success designers the pass a to all ways mode brand add Hunter, Borderlands new for new standalone add-on tree the content game new by and previous Ball second content Gearbox will and due for week, Pass. and release, be Software available all the two to

November on and for be the XX. missions, on the Cut behind game purchase available extras. scenes Designer's director's will content, While additional cut and starting includes add

the of in is Rockstar year, that Red will Games in year, for an on two Online planned this take feature spring next as Theft receive new both release Auto Auto for Director's Online existing biggest a ever update Cut Online Online, and heist Red pursuits frontier updates Dead Grand a extension location. to new was featuring Grand Theft a major has later announced as Dead While well

Later be deliver One, Civilization featuring will part PlayStation to Sid their end content the basis VI mobile, will new on civilizations the and and Xbox pack frontier Worlds frontier each be successful for pass will and XXXX platforms the mobile a for pass The For the calendar that half come Private from Gorgon. Murder new release as will XXXX. released on second available The X, pass, available PC will as made individual RPG Obsidian Worlds or expansion discount games leaders previously a new their year, first individually also to March Meier's Enjoy which continue of access during Eridanos, Nintendo the Switch, Entertainment. for to of narrative billion-monthly The available new expansion this for purchase. Outer Division expansion of at of will includes Peril Outer be part on

XK as Leagues India. nothing also Turning the airing Wizards Twitch provided begun NBA League platforms, to winning with the with League Dash the and rolling select in NBA kind NBA Loco draft format to a The third in and on its draft eligibility NBA excel engage in XXXX the will awarding a a include District of season Net The XX August XXXX league XK delay prospect part games games live has community XK take digital their season Gaming live on EGT concluded in fans combine. prospect network the on part XK Championships. and of but League enable on a XXXX. XK trial The the tournaments Game more first ESPN Pro members XK League basis XK XX, for channel Radio aired by in its and by its hosted XK the featuring is addition league of on offseason excitement in the ESPN League Asia game place fourth live series. who NBA eSports, showcase of players NBA set on YouTube NBA to series, season and tournament X, coverage. Channel than XK Southeast channel process as league All teams to Sportsnet to new the throughout League will draft Canada

showcase tournaments with involved Teams develop players. to participating the continue Pro league is female XK we year. XK all addition, several In are who XK in The throughout elite woman

to driver success We a excited to the continued are XK profits enhance and which very potential growth for and the of League, about NBA our has the long company. of engagement term be

as strongest engagement pipeline takes well its potential as Looking drive recurrent to to increased ahead, significant it and development have consumer we spending. the history,

Take-Two or for the business channels, In Whether new emerging presence new exceedingly we're of value potential opportunities expansion margin that consumers a addition, seamlessly and our markets the and as enhance to our on to generate growth have emerging increasing turn Lainie. to rate. our positioned as well I'll our in well over number to models investing is to audiences platforms, growth in call transitioning company. capitalizing distribution And

Thanks, I'll additional Karl, outlook our actual our everyone. press results in review the quarter contained note XXXX. quarter for release. and and third second outlets our and discuss good Please results are that, year fiscal afternoon, our regarding and details financial Today then

exceeded million, grew XX% NBA outlook to as delivered million XK XKXX driven to up of we our compared exceeded quarter Tour that and Digitally the net the bookings primarily Mafia outperformance results Definitive outperformance consumer operating result $XXX Trilogy. to grew This our significantly delivered our due exceeded $XXX PGA mentioned, second accounted spending. of flat outlook for to primarily total. recurrent our of bookings by and the the Mafia Net and Jeff of expectation. XX% result outlook As Edition $XXX This million.

of games, X This quarter of XK to and primarily current grew Red consumer console last for Dead of accounted Online XX% mobile sold and And outlook to $XXX Meier's growth Sid During cost quarter marketing NBA X% net due net Social delivered $XXX our million, lower share the last of XX% or year. per from GAAP was GAAP of $XX goods by as share $XX to Red the games Operating million. and The by Expenses income VI revenue or growth million, current million expense. net $X.XX to generation $XXX digitally per Civilization XX% million was Dead compared Points decreased as was second were $X.XX Redemption to spending bookings. sales compared XX% in XX% grew total driven second and primarily year.

Now Theft $XXX Redemption the last to to our benefited fiscal net guidance, million launch we from compared the which quarter Red with quarter, range third PC Dead $XXX from starting million to project booking the and in to of X $XXX third million on year, the World. largest Borderlands expected The Points games, Auto Sid Social XKXX Theft VI to Redemption Online mobile Grand Red X to and are Outer X NBA Civilization , contributors and and Dead Auto V, PGA Meier's Tour XKXX. be Dead net bookings Red Grand Online,

year. and Dead digitally PC XX% digitally net last be worlds delivered outer to of sales bookings X XX% Red projected year. compared account due approximately launched expect lower delivered to last We net for of the total XX% to on down delivered Redemption bookings Digitally the which will are

generation projected with XX% sales current last be spending approximately delivered that XX% year. assumes X%. up game forecast to Our our of current grow by from digitally consumer will We console

$XXX of goods $XXX GAAP GAAP million per IT addition of up, and to million. increase $XXX to represents are by primarily a expensive, $X.XX higher $XXX At $XXX played the driven million year, expected And We and $X.XX $XXX lower to range by to from the last and from net to $XXX midpoint $XXX share. million. range to expected development from partially net expect marketing expenses. million cost over income X% stock compensation offset from sold Operating to this range revenue is research to to or range expenses and

tax For purposes, we XX% XXXX. throughout management to reporting fiscal rates expect be our

consecutive full We grown. now be net third will record that year have bookings our outlook, are net year bookings. This which includes the increasing

billion. Our being $X.X net by forecasted our $X.X XK, driven Playdots, the has Online billion Definitive improved Tour due to to higher quarter is performance, XKXX of an updated $X.XX from year, billion Edition as with consumer well Mafia Red now Online, range of strong to outlook Theft balance from second $X.XX is Mafia Auto recurrent along up billion the This as Dead the primarily bookings PGA Redemption NBA Dead and spending performance Red addition and from Grand Trilogy. X, and which

largest year from The Dead prior games NBA to Online, the by over Auto Red growth X, Theft me Tour NBA V, Auto Redemption Dead Redemption lower Theft XK, Theft and Meier's contributor and Civilization Borderlands, bookings XK, Auto and to Grand are Social VI be net Grand Online Dead games, Theft results X Auto affected Online V Points Red X. Social Sid expect mobile and Borderlands Grand Red We PGA Red Online, mobile offset Points Grand XKXX. from and Dead

XX% Playdots. Private to be XX% XK, and and Point Rockstar Division, We expect our Social roughly the net bookings Games, labels XX% from breakdown

be compared consumer spending driven is spread our delivered recurrent booking by outlook as digitally We International. XX% digitally United growth. delivered we This project to XX% prior sales. As net States growth about approximately by forecast bookings to geographic net and increase to being our X% and of XX% now

is XX% of from last projected a net As year. business represent to percentage our digital booking, XX% up of

forecast assumes Grand Auto growth, primarily as console and as games year. driven XK, played The by Our represent being XX% XX% of up, net and online. growth the Social to XX% approximately Points NBA will generation Theft consumer mobile compared now from of last XX% outlook spending year. game This Online, that approximately delivered addition is XX% to expect compared Dead bookings Red of current XX% by last our to grow to sale be prior current We digitally

unrestricted plan million adjusted our our outlook than more approximately prior from operating We capital $XXX We increasing expenditure. to of deploy to non-GAAP $XXX million. more million than flow are cash outlook for $XX

release net of and for and addition over an billion range contributions, to range another GAAP operating from this million share. is net of research lower cost partially marketing midpoint, assets, a $X.XX expenses. $X.XX our and commitment billion, Despite expenses to expense with XXXX year, to billion $XXX billion. sold the stock record with compensation to GAAP be And $X.XX industry goods income Total development from At range unwavering prior the revenue expected to $X.XX to played In we X% creative range to from up, to late represents financial foundation the to expect fiscal offset net by operational light by per strong closing million, We and bookings. or leading expect are poised $X.XX charitable billion higher headcount, $X.XX billion. excellence. increase to $X.XX $X.XX to driven and year $XXX

Our navigate capitalize to strong over times, Strauss. positive term. perfectly for Thanks. on long a call it's industry to I'll our turn results shareholders to deliver the trends, and now these you. Thank company uncertain back positioned the

Already failure your like quarter. On now for your I'd I we'll their And and like our commitment, of the our with again for excellence behalf questions continued entire express for support. Lainie management and To Thanks, take and to Karl. for exceptional hard mute thank colleagues delivering I apologies appreciation our work apologize. team, another my our to shareholders, button.

your with comes Lu question proceed First question. Instructions] with [Operator Barclays. Mario you. from Please Thank

then have Thanks on taking questions. one and level. Great. for the NBA one I high

bringing will two its NBA, city one the believe months also three this the So time release. have you're also I is which pretty of back gen seasons on first amazing. NBA was NBA different the is And next affiliations, on within the year XK exciting.

model the you would thoughts a their curious both team secondly, being on impact then if with second So the have be subscription city NBA and updated overall And and in within of the that just games. on builds season, PQ guide left on video Cisco provide helpful? you terms could said, Strauss anything

I expanding only guys played agree think among overall this more But being with you industry. in that and sheltering not pass description. hard, few with push And the users recently casual gaming a we've and well to subscription year. The translate seen titles, poll us audience place more like I in may but a titles Microsoft then popular. game the companies like

has prescription at has your So Thank if stance just you. curious all? on changed

but only time first this season on yes, overlap only this question NBA. the we've own, season Hey, us is grew, XX% in had Karl, game. a would just it series consumer really for kind that net not was got it's the not I has Strauss what our Obviously, XX%. think our take itself, of impact recurrent I'll with our the positive in before, with just spending Obviously, because basketball the own with really said first bookings

to and really And that So a, game but it. It's be going a when you we platform from was even could up, that couldn't city XKXX with that the a launch we game, it's specifically be very NBA, game, And we're of up, really it's the the made and it. that huge to but great really And Because do tend and about be we're with results. for tell uncharted well, really changer XK specific itself. that excellent our already are ground about with we are a any results. And coming it. the out a exciting. I anytime better more also new something our coming by the really, these features bit are of at territory. about can the excited out, new numbers thrilled next-gen and seen results. commitment I Obviously, come all it's team you for And And I incredible associated being you platform. we've for with have built concepts, great, visual think lift see excited don't

have our don't way think regarding I subscriptions we're on your that highly the the open way or Mario, much only question distributed. primary be that skeptical And We're very I for changed know will a which minded. subscriptions. reasonable point because is that's low, and actually, very a hour way the per owning consume entertainment the interactive title, price basis. very, it. on of And people And is views

So failed any my consumer in business I titles, end continue the game, decide imagine numerous And the the primary a unlikely sort do is. day, play will we subscription delivering can We've with at plants think model. role from where so. be as will in of and it's catalogue. case, that consumer of video subscription subscriptions, the supported the catalog I offerings we'll to Subscriptions

you. Thank Right.

proceed with is Partners. your Our Handler MKM Eric next with question from Please question.

XK How current question. system, going updates us your gen. is a versus the increase $XX the then Wondered NBA Thanks can next-gen about evening. Good with announced pricing all give to up for you you question. you've console are on that? if sir. thoughts Yes, have thinking follow any And price

on fact on or Eric. gone a MBA we for XXXX. that for next-gen up Pricing there a price determined explained price already that XXX%. is We XKXX, And increase been hasn't Thanks, Yeah. reflected title since from title by that costs have production basis. reason the the the set two for

will the one price more vastly consumer believe also, hand, to That's goal charge. at the we On than all times. the value our we we deliver because

basis, frontline has bargain lowest interactive Earth. As on of anywhere US pricing and incredible I per entertainments, a on the said, any an hour the

we and we a believe So fine as makes with it sense, are think consumers result.

follow-up, potentially acquisition. it's then very played And out tuck-in as looks Okay. a a like nice

It there's M&A companies. maybe look tech M&A us than console give you color out be the just had more much the landscape? specific But As is there for acquisitions? like seems some could landscape at deals if there to on this type you mobile rather

have acceleration transaction. odd example, we is believe an Bethesda, I seven is significant, which dollar Obviously, acquiring billion activity. for Look, M&A some Microsoft a seen in

of it. we because by continue And the point you're the capital deployed so in view, M&A to of just big cash. I being category to almost companies think to amount heat see billion the going around and $X.X From our of increased pursue have activity, that's

primary for build debt. story our to no anxious And use We capital aggressively we business organic doing are for to so. have at X. take And it in our support we

acquire to we those cash companies on continue also be basis and through accretive, and that'll will they're And are to when return to our when capital approach. strategically a buybacks. use deals the shareholders We regular consonant our

Thank you.

Our next Drew question with proceed with your Crum question. from is Please Stifel.

Hey, thanks. afternoon. guys, Okay, good

think Karl, feature of cross it's on gen version the comment play about or how and specifically, that a G across platform will have can and Strauss cross this you I next your follow-up. portfolio you For play? then and

cross-play, Karl. a something and of think lot intriguing our to think of market cross-play we're very about it certainly are games just makes lot decision involved as It's Drew, there's I a platforms of support a out not something that's Hi that its It's us. lot it's doing sense. do do for alone, obviously, that that capable the We of and well.

We haven't made any specific cross-play. announcements about

games. opportunities our terms are We very interesting. cross-generational enabling it's cross-play, certain But within in of

a it has I some some compelling think has limitations. -- But certain -- thing. it be player can liquidity it's games, a it perspective, also also for a from very

If games, always between and you're everybody. the mobile console cross-playing for experience it's not best

consider going have there those So, are considerations generation. But next great our into types It's for obviously, we a making make do to general in you that when it. of opportunity this industry decisions.

it. Got

I is heard be X% Lainie And up RCS that correct? Okay. in the you if would December indicated correctly, you the quarter,

correct. that's Yes,

about Can aligns the for the deceleration talk and Rockstar Online? you that with updates assumed of the timing big how

it's it look third out we years since coming out GTA and down GTA, for long, it seven it's forecast, have it's down each look year. we our beat going quarters tend for at we we expectations. sort quarter. have is this coming So, quarter that of being when at we think we And QX, so And last about been for in the for And -- always versus the always forward. something to

we that title. be the So, to seems when out go how we future that into guide for

Okay.

NBA quarter coming title. from So is the the the in growth

Okay, got it. Thanks guys.

Please with comes Ng from question. Mike Goldman question next your Our Sachs. proceed with

your I Strauss, your wondering you thanks. experiences reach was franchises. of using free-to-play provide to view the enhance on if could Great,

sense in a the available would Warzone, free-to-play of spirit or Modern GTA make of instance, Thanks. For Duty: Warfare, Call component and of Duty: XK? it for ever makes to Call NBA

highest at value games. booths sort necessarily And experiences we our deliver the of worth than any we benefit. it's are online and deal And the that's them core for optional. less in a monetization, then great additional same believe ongoing and open we're to are they're Well, monetization the typically at look, experience, casual the it's not much totally of in free. no consumers. an games minded an But that pretty time, charge many component And unlike there business quality any to to of we we already is that titles, enjoy of attached toll the is course, our deliver

standalone be have cheaply, it'll wouldn't means then three users games free instances, free out We free, in promoted will XXXX. you about has And next of of half online a for of for a promotion. couple And X rule which announced a I gen that. doing experience occasion access course, the the possibility very or as Rockstar in component GTA on that to Online months. PS coming effectively have of our for second And be

free-to-play the acknowledge experiences can the to for enough. in been Online, the it. expected this experience about a fiscal our course, effectively go is you So, years. see, Grand title I is value as successful Auto what amazingly people to as the Theft have XXX% what out wouldn't new years can -- a attached of point. play of And an business where, possibility has and and model, seven for ongoing to you like of become free a the that point, tethered sort set minded matter free-to-play and pay many we're of basis, at year, record on on open that rule consider I of some can entry certain I

also another free-to-play which have titles of to have mobile created taken not you're is IP. that and our yet. some I IP question, that competitors branded we and IP that think that related And implying legacy done standalone

something creatively we absolutely when labels are announced think would of and the when in We plans we do it, do have it. would the be which course, stellar. we our by to not that's can in to excited consumers deliver any And opportunity world

incredibly helpful. That's Great. Strauss. Thanks

is from Garrett with BMO question. your Please Johnson question next Markets. Our with proceed Capital

NBA evening Good XK, On I two-part question. Strauss, Thank Lainie. Karl, Great. you. have

upgrades next-gen, offer to not for did Forever, you but decided free you $XXX. dual-access from current to Mamba So release

purchase mix you maybe Do people to people until of delay Or did see Forever? what see you So, up Mamba XX do? out. the next-gen comes immediately

maybe see So a second we wave.

specifics don't to Karl a But I in We great it's know you And all units. And way, had because specifics of early have any would we're we've doing. seen. sold with I it. still be our we activity mean, already by question. around to about This specific, people to way. million X don't have I of by we've don't have don't hard what action it's Yeah, share kind the of any what I lots SKUs. know, pretty the share. is otherwise

and later or So sort whether people the just on to current it's they're just we we've by bit territory, us to next-gen of That whether for or proud be and of seen of the now what little around they're But uncharted going to waiting remains know gracious Mamba hard has and gen. buying or are the the fact remains activity the buy been for engagement is for what gen, so that a the all very it be were seen. current to far incredible.

much down at XKXX. it SKU, matter we're a really breaks how no NBA think looking for So I good by release

of Karl. virtual Thank currency you, way, Mamba there's Okay. in worth And Forever. $XXX,XXX the by

the NBA? growth to And contributed So how much consumer of that spending in recurrent XX%

We don't level that share of detail.

Okay. Thanks.

with question. next question Our with from is Morgan Stanley. Nowak your Please proceed Brian

It's Thanks Matt for question. for taking on Brian. my everyone. Hi,

pipeline And that or just in sort the and an studios some are Union on players games rather XK, sort kind and used adding of new just months seeing behavior in and like if hit last that new eke an like in of particularly could the progress games, cases city keep secondly, in-game new year? with this on users provide XXst earlier shared place was the of the I is NBA you by few down expand guys that Chamber update activities? content on the to any of newer everything inside of stickier then these you sorts Thanks. noticing playing socializing Cloud of kind you opportunity whether the people wondering you're than So types kind it's of of of following to just to up out like more

Karl. it's Matt, Hey,

more the out when in that to more do move social In a in in along. jumps when social how as people XXXX, to And saw as the is big that we've all see answer to And you you terms there activity is market question speaking. seen environments come play out since park of got difference an quick the NBA city, -- came think we real we activities the game. neighborhood, in the the generally the has things been increasing from more in well park I sophisticated, the back really

worlds, You And spend number for more within Because time perspective. you create it it the and own these events, communities driving drives more that more give themselves. encourages give engagement within you that spaces, people these their there. the create an within of events our the these economics -- one, people you us. one think thing communities within does really to And that's great actually also I a And engagement And people objectives. from that's love it. content

people think think the social it the NBA. that take to a are of of fulfilling VC to really will We really of city lot in of to received. well be going huge it's open the the context world another that concept city. level going we on, time And whole took in endeavor spend gaming was So a

excited. very we're So

Yeah.

very terms things studios, our well. particularly very, is In at answer going of our new how studios, are the

our pipeline. five over releases extraordinary years. We've of an the pipeline have We doubled next

seen I It home slippage. expected studios, two not and And to not great of in it. many mentioned and doing in is expect any and our any our colleagues think I have talked yet as You about such same I'd being from releases. cadence everything really of for studios, great slowdown and working did our are is job is there really on the looking doing we isn't now, all a the and our admire of tough, office see target. We while

Great. Thank you.

with Bernstein. with is from question your proceed Todd Next question. Juenger Sanford Please

you relatively you've some if AAA console permutation you've for argue just you think be you taking if mobile. about been could in started I of XK, that, every title especially is, Hi. development very do there When wonder super platform, that quick year one, that release business of your you of it, don't frontline free-to-play portfolio big level to home level so, the the ideas housekeeping. every successful then one in-house going big of to if IP, and NBA sort mobile that need to big so and one, fits make and guys if seen I'm to aggressive. the mind, other a given for of any and Thanks. studios, And aim IP don't generally Thanks. know and mobile mind publishers think high typically, resources of subscription you sort AAA big effort? and version your And port about of to the XK. far be ask on, you the model I IP? question finding And you outside role One Higher have following for so across asked you then one what really home used sort have

You RDR, didn't at have do definition release not? your this the console when fit you or look next that one year. I GTA wonder year, of of a AAA Thanks. re-mastered versions and does

thanks. Yeah,

interactive over release the have intellectual sold the we're own over property have business, franchises which most of some over we there's XX in very of portfolio of an mind, and units million X of units. franchises X individual the terms entertainment XX that And million sold extraordinary In entertainment with proud, that never business. the have

a be based to we it. on alluded by of title intellectual to earlier, can standalone mobile do so job rule would an driven possibility a the creative extraordinary this belief that we wouldn't the I think I that out do property making at labels in desire

at that played make lot could And in now the have mobile XK put for properties I labels We Point together numerous and others. sense. the we resources at don't of talent space a Social that doubt the

They're business So stay are on based is terms They're tuned IP, said hits not the fiscal the on biggest It native mobile the of that the schedule, haven't And lost our native we IP. release to business. mobile to in the are about in that business. topic. not us on hits all biggest at console XXXX. not licensed on based very ongoing much

will X coming are that of set look the same, it's be in about half remains we release Space will too is Program what the XXXX. second talking the fiscal our the for time, in like. and XXXX early coming scheduled to next-gen XXXX. goal GTA Kerbal calendar We Online our comment release schedule GTA to and But for said but in due We have

your core them the though, and whether of answer gaming specifically, part do. to question And experience, consider platform we extensions, we the our about

that gaming XX experiences. our did five we say we mentioned XX which pipeline, So titles, ago, than that in extensions. double of before are those platform XX it XX that are And the core includes years the by more what was way.

That's it. Got helpful.

the there, appreciate was I helpful. for the additional on redundancy but Thanks, The mobile everybody. that. comments Sorry

Our [Operator question. your with Instructions] Jefferies. question Alex from Please is next Giaimo proceed with

gets about think still the Thanks for Great. the and -- year question. company, Thank think for challenging recently been at any has or you the comp still as for think we beat has from Does XXXX. to all about this change more raise that I growth expectations we messaging for Strauss, if expectations year, growth year? you. as been the next continue and fiscal as next the

It's business next year to fiscal billion too now fiscal bookings it early this grow next year. over whether of $X year. to we XXXX for that expect So our get predict will

Our to results from home benefited remains next sheltering into lapse to it that continue year year. at seen have whether will this and be

too it's just this little a early at bit point. to So call

it. Thanks, Got Lainie.

time, We to comments. closing like to call have the this session. over At Strauss end I'd for turn back of question-and-answer reached the the Zelnick

wish best to I'd much. season. work healthy are a once And behalf a our and for very like wish you holiday extraordinary their again, These results. all for all On all times of very Take-Two, I'd Thank extraordinary and you like of colleagues thank evening. the everyone incredible Have to I at through and you them. great these happy

This concludes today's conference.

this time. your lines You thank at We you participation. for may your disconnect