And we are the number two player in the space, so – and we would like to go from here. So, I see it as a net positive for the business, and we will see how they do with it. But I am certainly not betting against them.
Brian Fitzgerald: Thank you. Appreciate it.
Operator: Our next question is from Omar Dessouky with Bank of America. Please proceed.
Omar Dessouky: Hi. Thanks for taking the question. Back in May, on your fourth quarter call, you gave a $1 billion operating cash flow guide. And since you have updated us on the fiscal ‘25 top line outlook, I was wondering if you could also update us on the fiscal ‘25 operating cash flow outlook and any puts and takes around that? And then I have a quick follow-up.
Strauss Zelnick: Great. That’s Lainie.
Lainie Goldstein: So, Omar, we haven’t updated that number. We are still working on our budget right now. We would expect that number to change along with the release schedule changes, and it will depend on when the titles are released during the year of when the – a UFCF will be collected.
Omar Dessouky: Okay. So, maybe riffing off of Brian’s question about kind of Epic and Disney, thinking about Grand Theft Auto online, do you see any potential for Grand Theft Auto to be a trans-media property, which maybe involves brands and IP from franchises outside of Take-Two? Yes, that’s the question.
Strauss Zelnick: Yes. Look, we really do prefer that our labels talk about what’s going to go on in the title creatively. And I could riff endlessly and share my opinions, but I prefer to hear from Rockstar. And they will talk about what’s coming in due time.
Omar Dessouky: Appreciate it. Thank you.
Operator: Our next question is from Chris Shaw with UBS. Please proceed.
Chris Shaw: Great. Thank you for taking the questions. Just going back to the Zynga deal, at the time, you had talked about revenue synergies that would come through in time. Can you just remind us where those initiatives stand today and how your thoughts might have evolved since you closed the deal? And then second question, just any early learnings you can give us on the iOS fee changes in Europe and how this might inform your mobile strategy going forward? Thanks.
Strauss Zelnick: Yes. I mean we have made great progress across the-board, including on the revenue side. The biggest area of synergy so far has been our direct-to-consumer initiative, which is a collective initiative to offer the consumer the ability to purchase in-app currency for mobile games directly. And that’s been exceedingly successful, rolled out very quickly and quite profitable, and there is a lot more upside to come. There are numerous other areas on which we are making progress. We are kind of ticking the box with that one by itself. And in terms of game store changes, this will – there is a lot of moving parts here. And some of the decisions you mentioned in Europe and some of the decisions in the U.S. are contradictory. So there is a lot of dust left to shake out. But on balance, I remain of the view that I have stated years ago that distribution costs will come down meaningfully. They already are.
Chris Shaw: Great. Thank you.
Operator: Our next question is from Clay Griffin with MoffettNathanson. Please proceed.
Clay Griffin: Great. Thanks. Good afternoon. Curious if you guys have a reaction to speculation. I suppose that Microsoft maybe looking to take some of the titles that were formerly exclusive to the Xbox platform and making those more widely available. It seems at least part of that rationale, if it’s true, maybe around just the cost to develop big titles. And Strauss, love to get your thoughts on particular areas of development that are particularly sticky as it relates to cost? Thanks.
Strauss Zelnick: Well, the big console titles are expensive and time-considering to create. And if you want to make the very, very best, it takes a long time and it costs a lot of money. I really don’t want to speak for Microsoft and their strategy. There has been a lot of noise around that lately. I have no doubt that they will express where they’re heading. I would just say that if you take a look at their market cap now compared to a few years ago, you don’t want to bet against that management team.
Clay Griffin: Great. Thanks.
Operator: We have reached the end of our question-and-answer session. I will now turn the call back over to Strauss for closing remarks.
Strauss Zelnick: First, as always, I want to thank our teams for delivering such great work, with such extraordinary commitment. Everything that goes on here is a team effort and we are all aligned, all in this together and all working to do our level best to create the best entertainment for our consumers and to do it within the four walls of superb company with a great culture. I also want to thank our shareholders for their continued support. We are really excited about what is to come. Thanks for joining us today.
Operator: Thank you. That will conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.
