Strauss Zelnick: Marketing is really driven by our labels and our studios, and we don’t have a fixed march to a release from particular marketing needs.
Martin Yang: Thank you.
Operator: Our next question is from Timothy O’Shea with BMO Capital Markets. Please proceed.
Timothy O’Shea: Yes. Thank you for taking my question. Back on Grand Theft Auto. We’ve spoken about the Grand Theft Auto trailer. My question is really, is there a way to quantify or maybe compare what you saw in terms of all this anticipation for GTA VI compared with how the level of anticipation that you saw for GTA V ahead of that games announcement? And then I had a follow-up.
Strauss Zelnick: It is possible to do research around that. And our sense is that the anticipation is much higher, much, much higher. On the other hand, 195 million units to date is nothing to sneeze at. So we stopped well short of making predictions about how the title will do, but clearly, anticipation is running very, very high.
Timothy O’Shea: Yes. Thank you. That’s very helpful. And then just quickly, can we talk about how you make the decision about when to launch a game like Grand Theft Auto VI, like who makes the call, what motivates them? Assuming this is game quality, game finish polish, maybe there’s a desire to hit a specific launch window or really anything else that might influence Rockstar’s decision about the timing of when to launch this game. Thank you.
Strauss Zelnick: We’re seeking perfection. And when we feel we’ve optimized creatively, that’s the time to release. So – and we’re all in this together. In terms of motivations and incentives, the financial incentives of everyone who works at this company are aligned with those of the shareholders. So we essentially have – call it what you will, we have profit sharing plans throughout the company at the operating level. And at the senior level, compensation is driven largely by TSR. So our goal is to align the interest of everyone who works there with the interest of the shareholders. That keeps us all pointing in the same direction. So you are right, there is inherent tension potentially between getting something to market and creating perfection, but this company errs on the side of perfection.
Timothy O’Shea: Thanks, Strauss. Yes, anticipation is pretty high around here too. So we look forward to seeing again.
Operator: Our next question is from Mike Hickey with Benchmark Company. Please proceed.
Mike Hickey: Hey Strauss, Karl, Lainie and Nicole. Thanks for taking our questions. Lainie, just curious on your updated ‘25 view, I think this is two quarters it’s come down a bit, maybe now more than the last quarter. And I think I heard you said that maybe ‘25 and ‘26 is sort of the same. So, any color you can give us in terms of sort of bridging where you were for ‘25 versus what you are thinking now? And if in fact you are still thinking ‘25 and ‘26 together is kind of where your original guidance was. And then on the cost cutting, obviously, we are seeing a lot of that in the industry. I don’t know if it’s unprecedented trials or not, but no doubt, it’s significant. And you have already gone through one round.
Just sort of curious your motivation here to take another sort of big cost reduction, especially given what it look like, the next 2 years, you are going to have pretty significant growth given your pipeline coming to fruition. Thanks guys.
Strauss Zelnick: Lainie?
Lainie Goldstein: Hi Mike. So, for fiscal year ‘25, as I mentioned, it’s really driven by changes in the release schedule. And obviously, that will move some of the titles out into years going forward because the lifetime value of our portfolio hasn’t changed. So, we should – we do expect to see growth in fiscal year ‘26 over ‘25, so that hasn’t changed. So, it’s just a regular process of re-forecasting and updating the business. And this time, we are working on our budget. So, that’s where the numbers are falling out.
Strauss Zelnick: And Mike, in terms of cost reduction, as I have said and as you know, we have a three-part strategy that’s supported us well through thick and thin. And that is, first and foremost, to be the most creative company, also to be the most innovative and, finally, always to be the most efficient company in the entertainment business. And that’s a big challenge. And we mean it, and everyone here means it. And I think that it’s time to take another look at efficiency and make sure that everyone is focused on the things that really matter and only the things that really matter and put ourselves in a position where we have the opportunity for great operating leverage as these titles come to market and as the revenues flow through the system.
Mike Hickey: Thanks guys.
Operator: Our next question is from Brian Fitzgerald with Wells Fargo. Please proceed.
Brian Fitzgerald: Thanks. Strauss, I just wanted your opinion on this recent Disney and Epic deal. Obviously, you have your own strong IP, but we are just curious how you think that might impact access to license IP maybe for the industry at large, if we continue to see this type of tie-ups? Thanks.
Strauss Zelnick: It’s a good question. I only know what I read in the release and what you also read. What I read was that they are making an investment in a leading company, Epic, which is – obviously has a spectacular franchise in Fortnite. And then there was some talk around sort of creating a Fortnite/Disney ecosystem. And I don’t know exactly what that means, but I am not betting against my friends at Epic or Disney. And I wish them well. So, I guess it remains to be seen, but they are two fine companies. I think anything that’s good for consumers and it creates excitement in our industry is good for Take-Two because it keeps people engaged with the properties that we bring to market, and we have the best collection of owned intellectual property in the business, bar none.
