Take-two completed its acquisition of Zynga in May in a deal valued at about $12.7 billion. According to IGN, Take-Two expects almost half of its sales this year to come from Zynga's mobile games, according to the company's just-released earnings report.
This quarter, Take-Two reported a 41% year-over-year increase in net sales, thanks in large part to Zynga. Recurring spending grew 48% to 73% of the total, thanks largely to Zynga, but also to NBA 2K22 and Teeny Tina's Land.
What's more, T2 expects Zynga to account for 45% of total annual net sales by the end of this fiscal year (March 2023), 2K for 37%, R-Star for 17%, and Private Division for 1%. Mobile games accounted for just 12 percent of Take-Two's net sales in its last fiscal year. So that's a pretty big jump.
In a call with IGN ahead of today's earnings release, CEO Straus-Zelnick affirmed the company's strategy to use its new mobile flexibility to create more mobile spin-offs for its existing IP, given the right conditions.
When asked if Take-Two was looking at mobile ports or spin-offs of existing game ips, he said: "Take-Two has a long history of bringing many of its games to tablets and smartphones, and we have a very professional and passionate team, and we're going to look at the status of these ips in the hearts of gamers to make sure they work." "What's more important than existing IP is the new games we're making for mobile," he added.
Shortly after the Zynga acquisition was announced earlier this year, T2's CEO said Zynga would help bring Take-Two's most popular core IP to mobile devices. The Borderlands series, the NBA 2K series, the Grand Theft Auto series, the Red Dead Redemption series, the Bioshock series, etc.