Take-Two Reports Decline in Mobile Business Revenue

However, shareholders have no cause for concern.

Take-Two Interactive has released its financial report for the first quarter of fiscal year 2027, indicating a decline in its mobile division's performance. Despite a successful 2026, the company's mobile business revenue has decreased by 7% over the past 12 months.

Meanwhile, overall user spending on Take-Two products decreased by only 1%, which was better than the company's own forecast of a 3% drop. The main growth drivers were the Grand Theft Auto and NBA 2K series.

During the quarterly report, Take-Two CEO Strauss Zelnick emphasized that the company does not consider the decline in mobile metrics as a sign of a weakening mobile gaming market.

We've had really good results in the mobile segment. Certainly, there's some pressure on user acquisition right now, but that's cyclical. We absolutely do not believe that consumers are losing interest in mobile games.
Strauss Zelnick, Take-Two Interactive.

According to the executive, the comparison was challenging due to the exceptionally successful year 2026. At that time, the release of Color Block Jam helped increase mobile division revenues to $391 million, creating a high base for subsequent periods.

Despite the decline, Take-Two notes Zynga's stable performance, with results meeting company expectations. The largest contribution to future performance, according to the publisher's forecasts, will continue to come from so-called "evergreen" projects — Toon Blast, Match Factory, and Zynga Poker.

In addition, Words with Friends and Top Eleven exceeded Take-Two's internal forecasts for the quarter. The company also highlighted the success of 2K's mobile games — NBA 2K All-Star has attracted over 10 million users since its launch in 2026.

Take-Two President Karl Slatoff announced that Zynga will continue to develop existing projects through major updates and content, and will also release new games, including the football project Top Goal.

However, the company expects the mobile sector to continue to experience pressure throughout the current fiscal year. The reasons cited are the inability to replicate the success of Color Block Jam, as well as the gradual slowdown in the performance of a number of mature Zynga mobile games.