Pixel P&L: Take-Two's Widening Loss, Tencent's Gaming Surge, and Fortnite's iOS Battle

In partnership with

Welcome to another Pixel P&L edition. This issue takes 5 minutes to read. If you only have one, here are the 5 most important things:

• Take-Two reports revenue growth but deeper losses, shares drop 2.99% — full financial breakdown below.

• Tencent posts strong Q1 with 13% revenue growth, gaming division up 24%.

• Epic Games claims Apple blocked Fortnite's return to iOS despite legal victory.

• Activision announces the end of updates for Call of Duty: Warzone Mobile

• The Witcher 3 celebrates its 10th anniversary today — more facts below. 

Let's get into it.

Take-Two Reports Wider Loss Despite Revenue Growth, Shares Slip

Take-Two Interactive Software Inc. reported fourth-quarter fiscal 2025 results showing mixed performance, with revenue growth offset by deepening losses. The video game publisher's shares fell 2.99% in aftermarket trading to $225.40, despite the stock's impressive 55% gain over the past year.

Net revenue increased 13% year-over-year to $1.58 billion, while net bookings grew 17% to $1.58 billion, driven by strong sales of NBA 2K25 and WWE 2K25. However, the company reported a substantial net loss of $3.73 billion, or $21.08 per share, compared to $2.90 billion, or $17.02 per share, in the same period last year.

For the first quarter of fiscal 2026, Take-Two expects net revenue between $1.35-1.40 billion and a net loss ranging from $139-115 million, translating to a loss per share of $0.78-0.65.

The company's full-year outlook projects net revenue of $5.95-6.05 billion with net bookings between $5.90-6.00 billion. However, Take-Two anticipates a continued net loss of $499-439 million for fiscal 2026.

Take-Two plans to release 13 titles in the coming fiscal year, including highly anticipated games like Mafia: The Old Country and Borderlands 4.

Tencent Posts Strong Q1 Growth Fueled by Gaming, AI Investments

Tencent Holdings reported robust first-quarter results, with revenue climbing 13% year-over-year to ¥180 billion ($25 billion), driven largely by its gaming division.

The Chinese tech giant's gross profit surged 20% to ¥100.5 billion ($13.9 billion), while operating profit rose 18% to ¥69.3 billion ($9.6 billion).

Gaming remained Tencent's powerhouse, generating ¥42.9 billion ($6 billion) in sales, a 24% increase from the previous year and accounting for nearly a quarter of total revenue. Evergreen titles like Honor of Kings performed strongly alongside newer releases such as Delta Force, which reached 12 million daily active users post-launch.

International gaming revenue increased 23% to ¥16.6 billion ($2.3 billion), bolstered by PUBG Mobile and Supercell titles.

The company also expanded AI capabilities across its platforms, including WeChat.

"AI capabilities already contributed tangibly to businesses," said CEO Ma Huateng. "We expect these strategic AI investments will create substantial incremental returns over the longer term."

⚡Quick Bytes

OnePlus Partners with Indian Esports Teams for Product Development

OnePlus has partnered with three Indian esports teams: Gods Reign, K9 and Cincinnati Kids to strengthen its position in the competitive gaming market. Players will provide real-time feedback on OnePlus devices during tournaments, helping refine future products. 

Epic Games Claims Apple Blocked Fortnite App Store Return

Epic Games alleges Apple has blocked Fortnite's return to iOS after the developer attempted to resubmit the game following its legal victory over app store payment rules. Epic CEO Tim Sweeney says Apple failed to process submissions, leaving Fortnite "offline worldwide." Apple disputes this characterization, claiming it only asked Epic to resubmit without including the U.S. storefront.

Activision Ends Updates for Call of Duty: Warzone Mobile

Activision announced it will stop delivering updates for Call of Duty: Warzone Mobile, citing failure to meet expectations with mobile-first players. The game will be removed from app stores after May 18, though existing users can continue playing. The title's struggles contrast with Call of Duty: Mobile's success, which has generated over 500 million downloads.

⚔️Side Quest

📺 Watch: Digital Foundry's deep dive with id Software reveals how id Tech 8's breakthrough ray tracing and physics innovations deliver Doom: The Dark Ages' seamless destruction and performance.

🎮 Play: DOOM: The Dark Ages delivers stunning visuals, pulse-pounding combat and a return to 2016's gameplay flow, though its new mech sequences and melee focus may divide series veterans.

📚 Read: Giant Bomb’s new owners discuss how they successfully executed a rare media management buyout, pivoting from corporate ownership to creator-controlled business model with renewed content strategy.

💡Did You Know

Did you know that The Witcher 3: Wild Hunt, released on May 19, 2015, celebrates its 10th anniversary today? Here are some fascinating facts about this landmark game:

• The Witcher 3 has sold over 50 million copies worldwide as of March 2023, making it one of the best-selling video games of all time.

• The game's massive open world contains over 100 hours of core gameplay and an additional 50+ hours of side quests.

• Despite its massive commercial success, fans have waited a full decade for a direct sequel. The Witcher 4 is finally in development and will feature Ciri as the main protagonist.

• The game's Blood and Wine expansion was so substantial that it won "Best RPG" at The Game Awards 2016, beating out full-price titles.

• CD Projekt RED's dedication to the game continued long after release, with the last-gen to next-gen update arriving in December 2022, over 7 years after the initial launch.

• The game's iconic "Gwent" card mini-game became so popular it spawned its own standalone title and mobile game.

📜 Quote of the Day

Was this forwarded to you? Sign up for free here. 

We read every email! Share your feedback by hitting reply.

Looking for unbiased, fact-based news? Join 1440 today.

Join over 4 million Americans who start their day with 1440 – your daily digest for unbiased, fact-centric news. From politics to sports, we cover it all by analyzing over 100 sources. Our concise, 5-minute read lands in your inbox each morning at no cost. Experience news without the noise; let 1440 help you make up your own mind. Sign up now and invite your friends and family to be part of the informed.

Subscribe to 1440 today.