Navigating the Future: Strauss Zelnick Discusses Tariffs, AI, and the Anticipation of GTA 6

As Take-Two Interactive announced impressive results for Q3 FY 2025 and prepared stakeholders for an extraordinary year ahead, which includes the launch of Rockstar’s highly awaited Grand Theft Auto 6, Take-Two’s CEO and Chairman Strauss Zelnick discussed the outcomes and significant challenges facing the industry in 2025 with GamesIndustry.biz.

The following interview has been condensed for conciseness and clarity.

Take-Two has an extensive portfolio this year; could you elaborate on the balance between more annualized franchises and the space you provide creative teams for longer-term projects?

This is a strategy we began discussing as soon as we acquired the company in 2007. It has taken a considerable amount of time to develop, and we have experienced years where we could execute it effectively, along with other years where we simply could not. However, our perspective has always been that only a select group of sports entertainment titles truly merit annualization, while most other titles should not be annualized for two reasons.

First, to ensure that you deliver the best possible product to satisfy your audience and to cultivate a franchise rather than dilute it over time.

Secondly, to build anticipation and desire. If something is released like clockwork every year, I believe it becomes more challenging to generate that excitement and demand. We are currently witnessing significant anticipation for GTA 6, for example, but I believe you will also observe excitement surrounding Mafia. Right now, in Early Access, we have seen substantial enthusiasm for Civilization 7.

Once we get it right, we are gearing up for a year like the upcoming calendar year, which is shaping up to be remarkable, where we have beloved franchises returning with iterations that take years, often decades, to develop. Additionally, having our annualized portfolio, and layering on top of that our live services and mobile sector, we feel we are in a pretty good position.

Could you elaborate on the mobile sector, as it seems that many people tend to overlook the significant role Zynga plays behind the scenes? How have you seen this mobile market evolving?

Well, the good news is that we are back in growth mode. Mid-2022 saw a downturn in the mobile industry for the first time in its history, but now the sector is experiencing modest growth again. In our case, our most recent user spending increased by 6% in the quarter, year-over-year, driven primarily by the success of Match Factory, which our studio Top has developed and continues to expand. However, we’ve also seen some moderation in our legacy titles, so the industry does face its challenges.

That said, with the acquisition of Zynga, we are a company on track to achieve around $5.5 billion in net bookings this year. We are a profitable business. We expect to be highly successful and to set records for net bookings in fiscal 2026 and 2027, and without the mobile portfolio, that wouldn’t have been feasible.

Additionally, we must be where the user is, and our mobile business caters to a slightly different demographic compared to our console and PC sectors; the mobile audience tends to skew more female and tends to be older. Therefore, we are engaging every interactive entertainment user on the planet in one way or another.

How is Take-Two as a company perceiving the introduction of tariffs and the implications that come with it?

Well, our industry association, the ESA, has been active on this matter, and generally speaking, I think most economists would concur that a world without tariffs is preferable.

That said, tariffs play a role when they are deemed necessary, such as when a country engages in dumping on other economies. However, aside from that scenario, I generally align with free trade. Like everyone else in the industry, I have some concerns about the potential for trade wars. Nevertheless, I am encouraged that we seem to be avoiding these with Mexico and Canada through conversation and negotiation, and I am cautiously optimistic that this will lead to favorable outcomes.

Regarding some of Take-Two’s older titles, there is still a vibrant community around games like GTA 5 and Red Dead Redemption 2. Is that merely the unique Rockstar formula, or is it a direct result of Take-Two’s approach to managing those teams and the overall ecosystem?

Well, I believe Rockstar does possess a unique…