Q2 2022 Prepared Remarks

Take-Two Interactive Software

2Q22 Quarterly Results - Management Prepared Remarks

November 3, 2021

SAFE HARBOR - Nicole Shevins

• Good afternoon. Thank you for joining our conference call to discuss our results for the second quarter of Fiscal year 2022, ended September 30, 2021. Today's call will be led by Strauss Zelnick, Take-Two's Chairman and Chief Executive Officer, Karl Slatoff, our President, and Lainie Goldstein, our Chief Financial Officer. We will be available to answer your questions during the Q&A session following our prepared remarks.
• Before we begin, I'd like to remind everyone that statements made during this call that are not historical facts are considered forward-looking statements under federal securities laws. These forward-looking statements are based on the beliefs of our management, as well as assumptions made by and information currently available to us. We have no obligation to update these forward-looking statements. Actual operating results may vary significantly from these forward-looking statements based on a variety of factors. These important factors are described in our filings with the SEC, including the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, including the risks summarized in the section entitled "Risk Factors." I'd also like to note that, unless otherwise stated, all numbers we will be discussing today are GAAP and all comparisons are year-over- year. Additional details regarding our actual results and outlook are contained in our press release, including the items that our management uses internally to adjust our GAAP financial results in order to evaluate our operating performance. Our press release also contains a reconciliation of any Non-GAAP financial measure to the most comparable GAAP measure. In addition, we have posted to our website a slide deck that visually presents our results and financial outlook. Our press release and filings with the SEC may be obtained from our website at take2games.com.
• And now, I'll turn the call over to Strauss.

Strauss Zelnick

• Thanks, Nicole. Good afternoon and thank you for joining us today.
• I'm pleased to report that we delivered another outstanding quarter, highlighted by Net Bookings of $985 million, which greatly exceeded our expectations and increased 3% over last year. We experienced consistently strong engagement trends across our key franchises, underscoring the durability of our offerings and the deep relationships that we have established with new, existing, and returning players. We believe that we can maintain these favorable engagement patterns as we continue to deliver the highest quality entertainment experiences that are driven by our teams' passion and commitment to creativity and innovation.
• We have been taking key actions to execute on our long-term strategic vision.
  o We continue to enhance and diversify our pipeline across an array of platforms, business models, and genres.

Take-Two Interactive Software

2Q22 Quarterly Results - Management Prepared Remarks

November 3, 2021

1. To support this, we are investing in our infrastructure and making key hires,

ranging from senior talent at our labels to the addition of more than 350 new developers during the second quarter.

1. We are pleased with the progress of T2 Mobile Games, which is helping us leverage our teams' expertise across our enterprise. Additionally, Nordeus has already reached key integration milestones.

• 1. We continue to build upon our ESG efforts, and we hope to share more in the coming months.
• Given our strong confidence in our Company, we opportunistically repurchased 1.26 million shares of our stock during the second quarter for approximately $200 million, with an average share price of $158.67. This marks the first time in over two years that we repurchased our stock, underscoring the deep value that we observed in our share price. In November, our Board of Directors authorized an additional 7.4 million shares that the Company is permitted to repurchase, resulting in 10 million shares remaining available for repurchase as of the date of the additional authorization.
• Turning to our second quarter results, our better-than-expected performance was driven primarily by Borderlands 3, NBA 2K, and Grand Theft Auto V and Grand Theft Auto Online.
• On September 10th, 2K and Visual Concepts successfully launched NBA 2K22, with more players hitting the digital hardcourt in its first month than any prior release of the game. The title enjoyed outstanding initial success, with over 5 million units sold-into-date. Players are deeply engaged, and we are experiencing growth in Daily Active Users and Daily Games Played Per User compared to NBA 2K21 in the same period.
• For the quarter, the NBA 2K series delivered exceptional results that were significantly above our expectations. NBA 2K22 experienced growth in recurrent consumer spending, as well as a 4% increase in total in-game purchasers, and a 58% increase in new user spending. I'd like to congratulate the teams at 2K and Visual Concepts for once again delivering such a stellar basketball experience. We see a meaningful opportunity to grow the franchise further over the next few years as we provide engaging and frequent content updates throughout the game.
• Sales of Grand Theft Auto V continued to exceed our expectations, and to date, the title has sold-in more than 155 million units worldwide.
• During the period, Rockstar Games launched another major update for Grand Theft Auto Online's evolving world. The Los Santos Tuners update brought a renewed focus to the underground street racing scene and introduced a host of innovative and highly requested features, including the LS Car Meet - a shared social space where players can get together to modify, test and race their cars, get tattoos, and more. Los Santos Tuners also added 17 highly customizable vehicles; a

Take-Two Interactive Software

2Q22 Quarterly Results - Management Prepared Remarks

November 3, 2021

purchasable auto workshop; new robbery Contracts and street races; and the ability to add music in a new way through collectible media sticks.

• Recurrent consumer spending increased 33% and active player audience increased 11%, representing the strongest second quarter on record for both metrics. The success of Los Santos Tuners demonstrates Rockstar's ability both to anticipate the needs of its players and to respond to player feedback with an ongoing stream of high-quality and engaging content.
• During the quarter, Red Dead Redemption 2 also significantly outperformed our expectations, and to date, has sold-in more than 39 million units worldwide.
• Momentum continued in Red Dead Online with the introduction of the Blood Money update in July, which introduced a series of new criminal-themed opportunities; complex new missions, including the game's first train robbery; and The Quick Draw Club - a series of four distinct, rapid-fire passes featuring criminal-themed unlockable rewards, bonuses, and more. As a result of the Blood Money update, as well as the influx of new players attributable to the standalone version of Red Dead Online, we experienced a 26% increase in active players and a 29% increase in new online player acquisition. Recurrent consumer spending for the series was also notably above expectations.
• In August, Private Division expanded their portfolio with the physical release of Hades for PlayStation and Xbox platforms. The title continues to earn positive praise from the gaming community and is currently Metacritic's highest-rated game for the PlayStation 5 and Xbox Series X. In September, the label released Murder on Eridanos, the final expansion for The Outer Worlds, for the Nintendo Switch. We are pleased that The Outer Worlds continues to grow its audience and to date, the title has sold-in over 4 million units. Also in September, Private Division launched Kerbal Space Program Enhanced Edition for Gen 9 consoles, taking advantage of the latest performance and visual enhancements to provide players an exciting new way to experience this beloved space flight simulation game.
• During the quarter, recurrent consumer spending rose 7%, which was significantly ahead of our expectations of an 11% decline and accounted for 69% of Net Bookings. As I mentioned earlier, our consumer engagement trends were consistently strong, even as people resumed more normal socialization patterns and as schools and workplaces began to reopen. We are very optimistic about our continued ability to keep players engaged and to capitalize further on our massive audience size. For the period, NBA 2K and Grand Theft Auto Online were the largest contributors to recurrent consumer spending. Many of our free-to-play offerings were also notable drivers:
  o Top Eleven exceeded our expectations, driven by strong seasonal LiveOps and features, optimized marketing activities and enhanced user quality;
  o Dragon City and Monster Legends performed well, thanks to strong LiveOps,
  new updates and feature releases, and increased marketing investments;

Take-Two Interactive Software

2Q22 Quarterly Results - Management Prepared Remarks

November 3, 2021

1. Two Dots achieved its highest-ever Net Bookings since our acquisition, which we

attribute to new in-game events, such as scavenger hunts and curated seasonal content;

1. WWE SuperCard has now been downloaded more than 24 million times and remains 2K's highest grossing mobile game;

• 1. NBA 2K Online in China outperformed our expectations and remains the #1 online PC sports game in the region with nearly 55 million registered users. We continue to monitor the regulatory environment. It bears noting that China represented 3% of our Net Bookings in Fiscal Year 2021. While we remain optimistic about China and will pursue further opportunities there, we believe that our exposure to the region will remain limited in the context of our growing Net Bookings.
• Turning to our guidance, as a result of our second quarter outperformance, along with our updated forecast for the balance of the year, we are raising our outlook for Fiscal Year 2022, and we now expect to achieve Net Bookings of $3.3 to $3.4 billion. Lainie will provide more details shortly.
• With the strongest multi-year pipeline in our Company's history, we continue to believe that we will achieve sequential growth in Net Bookings in Fiscal 2023 and establish new record levels of operating results over the next few years.
• Our focus on bringing new intellectual properties to market will help us diversify our portfolio further and build lasting franchises that we believe will enhance our financial profile for years to come. At the same time, our teams are hard at work developing sequels to many of our beloved franchises that we know our consumers will be eager to play.
• As we execute on our strategic vision and maintain our commitment to an outstanding and collaborative culture, we believe that we will significantly grow our operations and drive long-term shareholder value.
• I will now turn the call over to Karl.

Karl Slatoff

• Thanks, Strauss.
• I'd like to thank our teams for all their contributions, as well as their continued passion and dedication to our business. Our unique and collaborative culture continues to be a key driver of our success.
• I'll now discuss our recent releases:

Take-Two Interactive Software

2Q22 Quarterly Results - Management Prepared Remarks

November 3, 2021

1. On October 1st, 2K and Hangar 13 launched the Mafia III: Definitive Edition for Stadia. Previously released on other platforms, the Definitive Edition offers many additional features and post-launch content that has since been incorporated into the game. We're pleased to continue our support for Stadia and expand the Mafia franchise to new audiences.

1. On October 11th, Nordeus released Top Eleven 2022 on iOS and Android, the latest installment of the world's most successful soccer management game. Top Eleven 2022 delivers significant updates to the gameplay and soccer management experience, pitting aspiring soccer managers against one another in League, Cup, and Friendly Matches. Top Eleven 2022 also provides a significant new layer of depth to player development via the Playstyles feature, which helps to enhance the soccer fantasy that Top Eleven has been providing to fans for more than a decade.

1. On October 14th, 2K and HB Studios launched the PGA TOUR 2K21 Baller Edition, which includes the base game, all previously released DLC courses and game modes, an assortment of Adidas apparel and gear, and the Golden Touch Pack that features a gold putter and driver. In addition, PGA TOUR 2K21 offers new multiplayer courses each month, designed by a group of international content creators. We're thrilled that the community continues to grow, with the title selling-in over 2.5 million units to-date.

1. On October 19th, 2K launched NBA 2K22 Arcade Edition for Apple Arcade, building on the success of its predecessor, which continues to be listed as one of the platform's top games with an average of 4.6 out of 5 stars across more than 85,000 ratings. NBA 2K22 Arcade Edition expands the franchise's addressable market with new modes and features, including The Association, MyCOURT, and more.

• 1. Rockstar Games continued to provide an array of free content for their vast and growing online communities. To celebrate Halloween, Grand Theft Auto Online added a series of random events to shock and surprise players, including driverless phantom killer cars, superhuman Slashers, UFO's, and more, including bonuses on Alien Survival modes, and a new Arcade game. Players will also be able to experience an all-new adventure in Grand Theft Auto Online later this year as they help some well-known contacts and familiar faces, with many more surprises yet to be revealed.
• I'll now discuss details on our upcoming announced offerings for this year:
• 1. Rockstar Games will digitally launch Grand Theft Auto: The Trilogy - The Definitive Edition this November 11th for PlayStation 5, PlayStation 4, Xbox Series X/S, Xbox One, Nintendo Switch, and the Rockstar Games Launcher for PC. The Definitive Edition will feature across-the-board upgrades for all three games, including graphical improvements and modern controls, while still