What changed in this filing

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Item 1. Business

2026-05-22 compared with 2025-05-20 · 41 added, 50 removed, 166 unchanged (35% of the section changed)

1 unchanged sentence

We develop, operate, and publish products principally through Rockstar Games, 2K, and Zynga.

In October 2024, we sold our Private Division label, including our rights to substantially all of the label's titles.

Our products are designed for console gaming systems, including, but not limited to, the Sony Computer Entertainment, Inc.

("Sony") PlayStation®4 ("PS4") and PlayStation5 ("PS5"), the Microsoft Corporation ("Microsoft") Xbox One® ("Xbox One") and Xbox Series X|S ("Xbox Series X|S"), and the Nintendo Switch TM ("Switch"), as well as mobile, including smartphones and tablets, and personal computers ("PC").

Our products are currently designed for console gaming systems, mobile, including smartphones and tablets, and personal computer ("PC").

We deliver our products through physical retail, digital download, online platforms, and cloud streaming services.

Our website address is www.take2games.com.

We make all of our filings with the Securities and Exchange Commission ("SEC") available free of charge on our website under the caption "Financial Information—SEC Filings." Included in these filings are our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, which are available as soon as reasonably practicable after we electronically file or furnish such materials with the SEC pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act").

We make all of our filings with the Securities and Exchange Commission ("SEC") available free of charge on our website under the caption "Investors—Financial Information—SEC Filings." Included in these filings are our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, which are available as soon as reasonably practicable after we electronically file or furnish such materials with the SEC pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act").

Our website and the information contained therein or connected thereto are not intended to be incorporated into this Annual Report on Form 10-K.

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Our pillars - creativity, innovation, and efficiency - guide us as we strive to create the highest quality, most captivating experiences for our consumers.

We believe that our player-first approach and commitment to creativity and innovation are distinguishing strengths, enabling us to differentiate our products in the marketplace by combining advanced technology with compelling storylines and characters that provide unique, deeply engaging gameplay experiences.

We believe that our player-first approach and commitment to creativity and innovation are distinguishing strengths, enabling us to differentiate our products in the marketplace by combining advanced technology with compelling gameplay that provide unique, deeply engaging experiences.

Our teams have established a portfolio of proprietary software content for the major hardware and mobile platforms, and we aim to be at the forefront of technological innovation.

We have a diverse portfolio that spans all key platforms and numerous genres, including action, adventure, family, casual, hyper-casual, role-playing, shooter, social casino, sports, and strategy.

This enables us to appeal to a wide array of consumers and demographic groups worldwide, ranging from game

enthusiasts to casual gamers.

This enables us to appeal to a wide array of consumers worldwide, ranging from game enthusiasts to casual gamers.

Most of our intellectual property is internally owned and developed, which we believe best positions us financially and competitively.

In addition, we license selectively some highly recognizable renowned brands, especially in sports entertainment.

We support our products with innovative marketing programs created by our internal global marketing teams.

In addition, we license selectively some highly recognizable renowned brands, particularly in sports entertainment.

We support our products with innovative marketing programs created by our global teams.

Attract and Retain the Best Talent in the Business.

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In particular, we believe that there are meaningful opportunities to expand our presence in Asia, the Middle East, and Latin America.

Within these regions, China is our most established market, where we offer NBA 2K Online and Civilization:

Eras and Allies through our partnership with Tencent.

Within these regions, China is our most established market, where we offer NBA 2K Online through our partnership with Tencent.

Our NBA 2K Online business is the top online PC sports game in China.

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Our Businesses

We derive substantially all of our revenue from the sale of our interactive entertainment content, which includes the sale of internally developed software titles and software titles developed by third parties, the sale of in-game virtual items and advertising, and live services on console, PC, and mobile.

We derive substantially all of our revenue from the sale of our interactive entertainment content, which includes internally developed software titles and software titles developed by third parties, in-game virtual items and advertising, and live services on console, mobile, and PC.

Operating margins are dependent in part upon our ability to release new, commercially successful software products and to manage effectively their development and marketing costs.

We have internal development studios located in Australia, Canada, China, Czech Republic, Finland, Germany, Hungary, India, Serbia, South Korea, Spain, Turkey, the United Kingdom ("U.K."), and the United States ("U.S.").

As of March 31, 2025, we had a

research and development staff of 10,096 full-time employees with the technical capabilities to develop software titles for all major consoles, PCs, and mobile platforms in multiple languages and territories.

As of March 31, 2026, we had a research and development staff of 9,998 full-time employees with the technical capabilities to develop software titles for all major consoles, PCs, and mobile platforms in multiple languages and territories.

We engage in evolving business models such as online gaming, virtual currency, add-on content, and in-game purchases, and we expect to continue to generate incremental revenue from these opportunities.

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Rockstar Games.

Rockstar Games' strategy is to develop a limited number of titles that are known for their quality and longevity in the market for which they can create sequels and incremental revenue opportunities through virtual currency, add-on content, and in-game purchases.

Software titles published by our Rockstar Games label are primarily internally developed.

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Rockstar Games offers its GTA+ membership program, which engages its player community with an array of rotating benefits, including access to classic Rockstar Games titles.

Rockstar Games continues to invest in the franchise and announced that Grand Theft Auto VI , which was expected to launch in Fall of Calendar 2025, is now planned for release on May 26, 2026, during our fiscal year 2027.

The label released its first trailer for the title in December 2023 and the second in May 2025 and will share more details in the future.

Red Dead Redemption 2 , which has been a critical and commercial success that set numerous entertainment industry records, has sold-in more than 70 million units worldwide to date.

Rockstar Games continues to invest in the franchise and announced that Grand Theft Auto VI is planned for release on November 19, 2026, during our fiscal year 2027.

The label released its first trailer for the title in December 2023 and the second in May 2025, and will share more details this summer.

Red Dead Redemption 2 , which has been a critical and commercial success that set numerous entertainment industry records, has sold-in more than 80 million units worldwide.

Rockstar Games continues to expand on its established series by developing sequels, offering downloadable episodes, and providing additional content.

Rockstar Games' titles are published across all key platforms, including mobile.

Our 2K label has published a variety of popular entertainment properties across all key platforms and across a range of genres including shooter, action, role-playing, strategy, sports, and family/casual entertainment.

Our 2K label publishes a variety of popular entertainment properties across all key platforms and across a range of genres including shooter, action, role-playing, strategy, sports, and family/casual entertainment.

In recent years, 2K has expanded its offerings to include several new franchises that are expected to enhance and diversify its slate of games and provide opportunities for sequels and additional content.

We expect 2K to continue to develop new, successful franchises in the future.

2K's internally owned and developed franchises include the critically acclaimed, multi-million unit selling BioShock , Mafia , Sid Meier's Civilization , and XCOM franchises, as well as the Borderlands and Tiny Tina's Wonderlands franchises, which we now own following our June 2024 acquisition of Gearbox Entertainment.

2K's realistic sports simulation titles include our flagship NBA 2K series, which continues to be the top-ranked NBA basketball video game, the WWE 2K professional wrestling series, PGA TOUR 2K , and TopSpin 2K .

2K also publishes mobile titles, including WWE SuperCard .

In 2018, we expanded our relationship with the NBA through the NBA 2K League.

Our Zynga label publishes popular free-to-play mobile games that deliver high quality, deeply engaging entertainment experiences and generates revenue from in-game sales and in-game advertising.

Zynga's strategy is to have numerous games in concept development and to determine which titles are best suited for soft launch and worldwide launch based on the achievement of various milestones and key performance indicator (KPI) thresholds.

Zynga's diverse portfolio of popular game franchises has been downloaded more than six billion times, including CSR Racing , Dragon City , Empires & Puzzles , FarmVille , Game of Thrones:

Legends, Golf Rival , Harry Potter:

Puzzles & Spells , Match Factory!

2K's internally owned and developed franchises include the critically acclaimed, multi-million unit selling BioShock , Borderlands , Mafia , Sid Meier's Civilization , Tiny Tina's Wonderlands , and XCOM franchises.

2K's sports simulation titles include our flagship NBA 2K series, which continues to be the top-ranked NBA basketball video game, the WWE 2K professional wrestling series, PGA TOUR 2K , and TopSpin 2K .

2K also publishes mobile titles, including WWE SuperCard and NBA 2K All-Stars .

Our Zynga label publishes popular free-to-play mobile games that deliver high quality, deeply engaging entertainment experiences and generates revenue from in-game sales and advertising.

Zynga's strategy is to have numerous games in concept development and to determine which titles are best suited for soft and worldwide launch based on the achievement of various milestones and key performance indicator (KPI) thresholds.

Zynga's diverse portfolio of popular game franchises has been downloaded more than 10 billion times, including Color Block Jam , CSR2 , Empires & Puzzles , Game of Thrones:

Legends , Game of Thrones Slots Casino , Golf Rival , Harry Potter:

Puzzles & Spells , Hit it Rich!

Casino , Match Factory!

, Merge Dragons!

, Merge Magic!

, Monster Legends , Toon Blast , Top Eleven , Toy Blast , Two Dots , Words With Friends , Zynga Poker , and a high volume of hyper-casual mobile titles, including Color Block Jam, Fill the Fridge!, Parking Jam 3D , Power Slap , Pull the Pin, Screw Jam , Twisted Tangle, and Tangled Snakes .

Private Division.

In October 2024, we sold our Private Division label, including our rights to substantially all of the label's titles.

The label was dedicated to bringing titles from the industry's leading creative talent to market and was the publisher, developer, and owner of Kerbal Space Program .

, Toon Blast , Toy Blast , Wizard of Oz Slots Casino , Words With Friends , and Zynga Poker .

Intellectual Property

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These licenses are typically limited to the use of the licensed rights in products for specific time periods.

In addition, we license and include console

manufacturer technology in our products on a non-exclusive basis, which allows our games to be played on their respective hardware systems.

In addition, we license and include console manufacturer technology in our products on a non-exclusive basis, which allows our games to be played on their respective hardware systems.

Manufacturing

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Effective as of November 17, 2005, we entered into an Xbox 360 Publisher License Agreement with Microsoft for the Xbox 360 console (the “Xbox 360 Agreement”).

Effective as of July 1, 2020, we entered into an Xbox Console Publisher License Agreement with Microsoft for the Xbox Series X|S and Xbox One consoles (the “Xbox Next Gen Agreement” and, together with Xbox 360 Agreement, the “Xbox Agreements”).

The terms of both Xbox Agreements expire on March 31, 2027, each with automatic one-year renewal terms thereafter (unless one party gives the other advance notice of non-renewal).

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We sell software titles both digitally and physically through direct relationships with digital storefronts and platform partners, large retail customers, and third-party distributors.

We sell our products globally and have sales operations in Australia, Canada, France, Germany, Japan, Singapore, South Korea, Taiwan, the U.K., and the U.S.

We sell our products globally and have sales operations in Australia, Canada, Chili, France, Germany, Japan, Singapore, South Korea, Taiwan, United Arab Emirates, the U.K., and the U.S.

We manage a direct-to-consumer platform, primarily for our mobile business, to drive purchases directly with our consumer base.

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Our advertising offerings provide creative ways for marketers and advertisers to reach and engage with our players and are generally essential for our free-to-play titles.

Our advertising offerings include banner and interstitial advertisements, engagement advertisements and offers in which players can participate in watch-to-earn engagements or other offer engagements, branded virtual items, and sponsorships that integrate relevant advertising and messaging within game play.

Our advertising offerings include banner and interstitial advertisements, engagement advertisements and offers in which players

can participate in watch-to-earn engagements or other offer engagements, branded virtual items, and sponsorships that integrate relevant advertising and messaging within game play.

Our marketing and promotional efforts are intended to acquire new users, maximize consumer interest in our titles, promote brand name recognition of our franchises, assist retailers and to properly position, package and merchandise our titles.

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• Employing various other marketing methods designed to promote consumer awareness, including social media, in-store promotions and point-of-purchase displays, direct mail, cooperative advertising, attendance at trade shows as well as product sampling through demonstration software distributed via the Internet or the digital online services.

• We have been able to build a large community of players, particularly for mobile titles, through players discovering of our games in platform storefronts, the viral and social features built into the network effects of our games, as well as the cross-promotion of our games to our existing audience.

• We have been able to build a large community of players, particularly for mobile titles, through players discovering our games in platform storefronts, the viral and social features built into the network effects of our games, as well as the cross-promotion of our games to our existing audience.

However, we also acquire our players through paid advertising channels.

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• Other interactive entertainment companies that range in size and cost structure from very small with limited resources to very large with greater financial, marketing, technical, and other resources than ours.

Examples of our competitors include Electronic Arts Inc., Embracer Group AB, Playrix, Playtika, Roblox, Savvy Games, Tencent, and Ubisoft Entertainment S.A.

Examples of our competitors include Electronic Arts, Embracer Group, Epic Games, Playrix, Playtika, Roblox, Savvy Games, Tencent, and Ubisoft.

We also expect new competitors to enter the market and existing competitors to allocate more resources to develop and market competing games and applications.

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Certain of our business models are subject to new laws or regulations or evolving interpretations and application of existing laws and regulations.

The growth and development of electronic commerce, virtual items, and virtual currency has prompted calls for new laws and regulations and resulted in the application of existing laws or regulations that have limited or restricted the sale of our products and services in certain territories.

The growth and development of electronic commerce, virtual items, and virtual currency have prompted calls for new laws and regulations and resulted in the application of existing laws or regulations that have limited or restricted the sale of our products and services in certain territories.

For more information on risks associated with complying with applicable laws, please see " Risk Factors " —Risks related to legal or regulatory compliance.

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We are constantly focused on our teams – their success, their structure, and how best to support them given their particular needs and projects.

49% of our full-time employees are located in North America, 34% in Europe, and 17% in the Asia-Pacific region;

48.3% of our full-time employees are located in North America, 29.8% in Europe, and 17.7% in the Asia-Pacific region, and 4.2% in the Middle East;

9,998 of our full-time employees are focused on product development.

While some of our teams are now working from the office full time, many of our colleagues are working in hybrid work environments, with some flexibility to work remotely on various days.

We believe this structure maintains strong productivity, and collaboration, cultivates a strong internal culture, and is also beneficial for talent retention.

Our approach to the workplace presents challenges, as well as opportunities, for managing teams and supporting employees.

We continue to support our workforce through ongoing and new initiatives, including enhanced manager training to strengthen team cohesion across various work models, encouragement of healthy work habits, active engagement with employee feedback, and a continued focus on mental health awareness.

We allow our creative teams to identify the work arrangements that are most effective, productive, and efficient for them.

We also continue to support our workforce through ongoing and new initiatives, including enhanced manager training to strengthen team cohesion across various work models, encouragement of healthy work habits, active engagement with employee feedback, and a continued focus on mental health awareness.

By empowering our teams to embrace an entrepreneurial mindset and to take calculated risks, we foster an environment where our people can thrive.

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We believe sustainability creates value for all stakeholders, including employees and customers, while also helping to mitigate risks, reduce costs, protect brand value, and identify market opportunities.

We have an organization-wide Sustainability Committee, overseen by the Board of Directors (the "Board"), to lead our sustainability efforts.

We have an organization-wide Sustainability Committee, overseen by our Board of Directors (the "Board"), to lead our sustainability efforts.

Through this committee, we developed a comprehensive, Sustainability Framework that reflects our top priority issues and stakeholder needs.

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We strive to provide an inclusive workplace in which everyone feels respected, heard, and safe.

Our culture, grounded in compassion, collaboration, and a commitment to excellence, supports an inclusive and welcoming environment for prospective employees and the broader community.

Our culture, grounded in compassion, collaboration, and a commitment to excellence, supports an inclusive and welcoming environment for our employees, prospective employees and the broader community.

Talent Assessment & Development and Employee Experience.

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Our global Learning & Development team curates a wide variety of training materials and programs targeting both hard skills development and career progression as well as programs in leadership development and employee round tables.

Our compliance training program seeks to ensure that our employees recognize and report any signs of harassment, discrimination, retaliation, or other inappropriate behaviors in the workplace and that they understand and abide by our Code of Business Conduct and other internal policies.

Our compliance training program seeks to ensure that our employees recognize and report any signs of harassment, discrimination,

retaliation, or other inappropriate behaviors in the workplace and that they understand and abide by our Code of Business Conduct and other internal policies.

Our learning and development programs are designed to be closely aligned with our performance management process and succession planning.

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The feedback generated through these tools helps to ensure we are providing a supportive, dynamic, and stimulating work environment for all of our employees.

These efforts and more contributed to Take-Two being named one of Forbes' Best Mid-Size Employers list for four of the last six years and certified as a Great Place to Work by Fortune every year from 2020 through 2025 (including in the U.K.

These efforts and more contributed to Take-Two being named one of Forbes' Best Mid-Size Employers list for five of the last six years and certified as a Great Place to Work by Fortune every year from 2020 through 2026 (including in the U.K.

in 2025 and 2026).

Compensation and Benefits.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business