"Grand Theft Auto 6" is gearing up for release, and Take-Two's (TTWO.US) earnings report shows mixed results: pre-orders exceed expectations, but losses are widening.

Video game publisher Take-Two Interactive Software (TTWO.US) reaffirmed its annual booking expectations on Friday and confirmed that the highly anticipated Grand Theft Auto VI will officially launch on November 19, bringing this year's most significant game one step closer to players. For the first fiscal quarter ending June 30 (the quarter in which pre-orders for Grand Theft Auto VI opened), the company achieved net bookings of $1.39 billion, slightly above market expectations of $1.38 billion, but the company's losses expanded further. According to a consensus of analysts compiled by the market, Wall Street had previously estimated the company would report a Generally Accepted Accounting Principles (GAAP) loss of $0.21 per share and revenue of $1.36 billion. Take-Two actually reported a GAAP loss of $0.18 per share and net bookings of $1.39 billion, both exceeding expectations. As a result of the earnings report, Take-Two's stock rose slightly in pre-market trading, up 1.26% as of the time of publication. Take-Two CEO Strauss Zelnick stated during Friday's analyst conference call that pre-orders for GTA VI had "started exceptionally well" with pre-orders open for only five days during the quarter but he did not disclose specific sales figures. The total net bookings of $1.39 billion were not broken down by specific game in the earnings report, but Take-Two noted that this figure mainly reflects the better-than-expected performance of the NBA 2K and GTA series, with NBA 2K's net bookings increasing by 7% year-on-year and the GTA series up by 3%. It is worth noting that net bookings are a commonly used performance metric in the gaming industry, recognized at the time of order; however, Take-Two only recognizes revenue based on actual earnings. The final revenue recognized this quarter was $1.53 billion. Overall, net bookings decreased by 3% compared to $1.42 billion in the same period last year. The quarterly loss was $34.1 million, while the loss in the same period last year was $11.9 million, indicating an expansion of the loss. In terms of financial guidance, Take-Two forecasts net bookings between $8 billion and $8.2 billion for fiscal year 2027 (ending March 31, 2027). According to data compiled by LSEG, the average analyst expectation is $8.86 billion, a year-on-year increase of 31.9%. The companys guidance for bookings in the current quarter is below Wall Street expectations, reflecting a business slowdown due to the lack of new game support ahead of GTA VI's launch. The company anticipates net bookings for the second fiscal quarter (ending September 30) to be between $1.62 billion and $1.67 billion, below the average analyst expectation of $1.85 billion. Take-Two opened pre-orders for GTA VI on June 25, but did not disclose any data related to demand trends in this earnings report. The day before, Take-Twos subsidiary Rockstar Games announced the game's pricing: the standard edition is priced at $79.99 (available in both digital and physical formats, with the physical edition containing a redemption code instead of a disc), and the "Ultimate Edition" is priced at $99.99, including "exclusive high-end vehicles, weapons, clothing, and action sets" within the game. The market generally expects that, with the series' strong fan base, the launch of GTA VI will bring Take-Two billions of dollars in revenue within a few days. Its predecessor, GTA V, has sold nearly 230 million copies since its release in 2013, making it one of the best-selling games of all time. Another focus for investors is the online multiplayer mode of GTA VI. The market generally expects Take-Two to replicate the success of GTA V Online this online mode has continuously contributed stable revenue to the company and effectively extended the games lifecycle by generating incremental revenue through player purchases of virtual currency and other means.