TAKE TWO INTERACTIVE SOFTWARE INC (TTWO) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that TAKE TWO INTERACTIVE SOFTWARE INC surfaced in its latest filing.

• Grand Theft Auto products contributed 12.4% of net revenue for fiscal year ended March 31, 2026March 31, 2026
• The five best-selling franchises in aggregate accounted for 54.3% of net revenue for fiscal year ended March 31, 2026March 31, 2026
• 39.0% of net revenue came from PlayStation and Xbox platforms in fiscal 2026
• 91.0% of mobile revenue came from Apple and Google platforms in fiscal 2026
• Sales to the five largest customers represented 80.6% of net revenue in fiscal 2026
• In September 2022, an unauthorized third party illegally accessed and downloaded confidential information from Rockstar Games' systems, including early development footage for the next Grand Theft AutoSeptember 2022
• In September 2022, an unauthorized third party illegally accessed credentials for a vendor platform that 2K Games uses for help desk support and sent a malicious link to certain playersSeptember 2022
• Acquired Zynga and Gearbox, which are prior acquisitions
• Goodwill impairment charge of approximately $3,500 recognized during fiscal year ended March 31, 2025March 31, 2025
• On February 20, 2026, U.S. Supreme Court ruled certain tariffs under International Economic Emergency Powers Act unconstitutionalFebruary 20, 2026
• On February 24, 2026, Executive Order implemented a global 10% tariff on all countries for 150 daysFebruary 24, 2026
• On May 7, 2026, Court of International Trade panel voted such 10% tariffs on most U.S. imports illegalMay 7, 2026
• In 2024, the FCC's efforts to reinstate net neutrality regulations in the U.S. were blocked by the Sixth Circuit Court of Appeals2024
• The FTC announced an enforcement action in January 2025 against a game developer for a game's virtual currency and loot box system deemed too confusing for vulnerable consumersJanuary 2025
• In March 2025, Spain's Council of Ministers introduced a minor protection bill proposing to limit loot boxes to consumers at least 18 years oldMarch 2025
• A similar bill was introduced in February 2026 by Portugal's ParliamentFebruary 2026
• As of March 31, 2026, we had $2,500.0 million aggregate principal amount of outstanding Senior NotesMarch 31, 2026
• We had a $1,000.0 million revolving credit facility under the Credit Agreement dated May 23, 2022, with no outstanding borrowingsMay 23, 2022
• The One Big Beautiful Bill Act (OBBB) was signed into law on July 4, 2025July 4, 2025
• The Inflation Reduction Act of 2022 includes a 15% corporate alternative minimum tax (CAMT)2022
• The American Rescue Plan Act of 2021 expands the limitation on compensation deductions for certain covered employees effective for us beginning April 1, 2027April 1, 2027
• On January 5, 2026, the OECD released new administrative guidance outlining a 'side-by-side' arrangement with safe harbors for U.S. multinational companiesJanuary 5, 2026
• Approximately $1.2 billion underwritten public offering of common stock completed in May 2025May 2025