Take-Two Lowers Annual Adjusted Sales Forecast

(Reuters) -Take-Two Interactive Software Inc lowered the annual bookings forecast Monday. This is a sign that it’s struggling to keep gamers glued, despite a weakening economy.

The shares of the New York-based firm fell almost 2% during extended trading.

The forecast is coming after Microsoft Corp and rival Electronic Arts Inc disappointed Wall Street. It suggests that the gaming market slump could be sustained.

Strauss Zelnick of Take-Two stated that net bookings fell as holiday shoppers shifted to established blockbuster franchises, and titles that were available with pricing promotions due to macroeconomic conditions.

He said that the trend had an impact on the performance of certain new releases.

Despite being released to positive reviews Dec. 2, Take-Two was the 14th most downloaded PlayStation 5 title in December. This was behind even the two-year-old “Spider-Man Miles Morales”.

Refinitiv IBES data shows that third quarter adjusted sales reached $1.38 Billion, which is lower than analysts’ estimate of $1.46 Billion.

Take-Two stated that it now anticipates adjusted full-year sales of $5.2 billion to $5.25 billion. This is in contrast with the $5.4 billion-$5.5 billion forecasted previously. According to data from Refinitiv, analysts had expected $5.39 trillion.

(Reporting done by Tiyashi in Bengaluru; Editing done by Shailesh Kuber)