Take-Two increases cost reduction plans, net bookings down 3%
pcgamesinsider.bizUS publishing giant Take-Two has said that it is upping its cost-cutting plans in an effort to reduce its margins.
In its financials for the quarter ending December 31st, 2023, CEO Strauss Zelnick (pictured) wrote that this current cost-reduction program was "significant" as well as "more robust" than its previous efforts to reduce its overheads.
For the Q3 period, Take-Two saw net bookings of $1.3 billion, a three per cent decline year-on-year. Zelnick said that the usual top-sellers – Grand Theft Auto, Red Dead Redemption and mobile business Zynga – exceeded expectations. However, the exec said that NBA 2K24 sales and mobile advertising were soft, which offset the aforementioned solid performance.
"Our strategy is anchored in creativity, innovation, and efficiency," Zelnick said.
"We are currently working on a significant cost reduction program across our entire business to maximise our margins, while still investing for growth. These measures are incremental to, and more robust than, our prior cost reduction program, and we aim to achieve greater operating leverage as we roll out our outstanding release schedule.
"We have always managed Take-Two for the long-term. Our Company's potential is vast and unique, driven by our creative talent, our owned and controlled IP, and our groundbreaking pipeline for fiscal 2025 and beyond. As we focus on our strategic priorities, we are confident that we will grow our Net Bookings, enhance our profitability, and continue to deliver value for our shareholders.”
Speaking to GamesIndustry.biz, Zelnick defended the company's plan to reduce costs.
"After ten years of unbridled industry growth and plenty of company growth, we think it's time to become really efficient at everything we do, especially in advance of this extraordinary pipeline," he said.
"We want to make sure we can avail ourselves of the maximum operating leverage possible. And remember, our cost profile isn't just about headcount. Our biggest line-item expense is
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