NEW YORK, Jan 31, 2026, 05:28 EST — Market closed.
- Take-Two Interactive shares dropped 7.9% on Friday, joining the broader slide in videogame stocks.
- The decline came after Google unveiled “Project Genie,” an AI tool designed to create interactive worlds from simple prompts.
- Investors are eyeing Take-Two’s fiscal third-quarter results, set to drop after the close on Feb. 3.
Take-Two Interactive Software shares dropped 7.9% to close at $220.30 on Friday, tumbling alongside other videogame stocks after Google revealed an AI model capable of generating interactive digital worlds from basic prompts.
The selloff hit just days ahead of Take-Two’s upcoming earnings report. The game publisher plans to release its fiscal third-quarter results after markets close on Tuesday, Feb. 3, with a conference call scheduled for 4:30 p.m. Eastern.
On Thursday, Google unveiled “Project Genie,” an experimental prototype enabling users to create and explore worlds through text or images. Investors see it as a potential game-changer for how games are developed and who ultimately profits in the value chain. blog.google
The move sent several gaming stocks tumbling simultaneously. Take-Two dropped nearly 10% in afternoon trading. Roblox and Unity Software also took a sharp hit, highlighting just how widely the market was spooked.
“A true transformation will happen when AI-driven design begins crafting experiences that are genuinely original,” said Joost van Dreunen, a games professor at NYU Stern School of Business. Reuters
Friday’s slide happened amid heavy volume, with roughly 6.9 million shares traded—far exceeding Take-Two’s usual daily activity.
Take-Two had forecast operational “net bookings” between $1.55 billion and $1.60 billion for the quarter ending Dec. 31, which it will report next week. The company also expected GAAP net revenue of $1.57 billion to $1.62 billion and a loss per share ranging from 49 cents to 35 cents. ir.take2games.com
Net bookings measure the company’s sales across both digital and physical channels, covering in-game items and ads. This metric is closely monitored since it can differ from reported revenue because of timing differences.
In its November quarterly update, Take-Two lifted its fiscal 2026 net bookings forecast to $6.4 billion-$6.5 billion, confirming Grand Theft Auto VI’s release date as Nov. 19, 2026. CEO Strauss Zelnick described this as the company’s “most robust pipeline” ever. ir.take2games.com
A major risk remains that AI-driven worries might be either overblown or stubbornly persistent: if investors start to see new tools as a threat to long-cycle, big-budget game economics, valuation pressure could linger even if Take-Two’s near-term numbers stay steady. Execution is another wild card—any fresh doubts about the timing of key releases could quickly take center stage in the earnings story.
U.S. markets remain closed over the weekend, reopening Monday, Feb. 2. All eyes now turn to TTWO’s earnings report and conference call Tuesday. Investors will be digging for fresh details on bookings, live services spending, and management’s outlook on how quickly AI might shake up the competition.
