Take-Two Interactive Software forecasts lower than expected

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Take-Two Interactive Software forecasts lower than expected

Take-Two Interactive Software Inc forecast its annual adjusted sales below expectations on Monday, weakened by waning demand for many of its titles, as the easing of COVID 19 constraints dampens stay-at- home gaming.

The shares of the company, which fell nearly 30 per cent this year, dropped 7 per cent in extended trading.

Consumer spending on video games in the United States fell 11 per cent in June, despite the fact that videogames are fueled by lock-down-weary gamers.

The gaming industry, considered by some analysts to be recession proof, has started to see weakness as people worried about high inflation have started spending less on hardware and accessories.

In the past week, Electronic Arts Inc predicted quarterly adjusted sales below estimates, while Activision Blizzard had also delivered a disappointing second quarter.

The Grand Theft Auto publisher said full-year adjusted sales will be between $5.8 billion and $5.9 billion. According to Refinitiv data, analysts predicted $6.32 billion.

The adjusted sales for the quarter ended June 30 were $1.0 billion, compared to Street's estimate of $1.09 billion, according to Refinitiv data.