Take-Two forecasts annual adjusted sales below estimates on waning demand

Aug 8 (Reuters) – Take-Two Interactive Software Inc (TTWO.O) forecast its annual adjusted sales below expectations on Monday, crippled by waning demand for many of its titles as easing of COVID-19 constraints dampens stay-at-home gaming.

Shares of the New York-based company, which fell nearly 30% this year, dropped 7% in extended trading.

The surging sales in videogames fueled by lockdown-weary gamers has started to fade as people began venturing outside, with consumer spending on video games in the United States falling 11% in June, according to research firm NPD.

The gaming industry, considered by some analysts as "recession proof", has started to see some weakness as people worried about high inflation have started spending less on hardware and accessories.

Last week, rival Electronic Arts Inc (EA.O) forecast quarterly adjusted sales below estimates, while Activision Blizzard (ATVI.O) had also delivered a disappointing second quarter.

The "Grand Theft Auto" publisher said it expects full-year adjusted sales between $5.8 billion and $5.9 billion. Analysts expected $6.32 billion, according to Refinitiv data.

For the quarter ended June 30, the company said adjusted sales stood at $1.0 billion, compared to Street's estimate of $1.09 billion, according to Refinitiv data.

Reporting by Tiyashi Datta in Bengaluru; Editing by Krishna Chandra Eluri

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Source:www.reuters.com