Take-Two's Silent Mobile Launch and AI Retreat Signal a Pivotal Year

Take-Two quietly launches Borderlands Mobile while closing its AI division, contradicting CEO statements. Analysts remain focused on GTA VI's 2026 release as the stock struggles.

Take-Two Interactive is navigating a period of stark contrasts. While the company quietly tests a key mobile expansion for one of its major franchises, it has simultaneously dismantled its entire internal artificial intelligence division, creating a jarring disconnect between its public statements and corporate actions.

The stealth release of Borderlands Mobile in the U.S. iOS App Store, developed by Zynga's NaturalMotion studio, marks a concrete step in a strategy outlined years ago. Following its $12.7 billion acquisition of Zynga, CEO Strauss Zelnick pledged to bring core franchises like Grand Theft Auto, Red Dead Redemption, and Borderlands to mobile platforms. This standalone title, featuring the series' signature cel-shading and mascot Claptrap with creative input from Gearbox, represents that plan in action. Its soft launch, devoid of any official marketing from 2K or Gearbox, comes as the mainline Borderlands 4 underperformed in 2025 and a planned Switch 2 port was paused.

Early player feedback has been largely positive, with smooth performance on iOS 18 and the immediate availability of a raid boss—a feature missing at the launch of recent mainline entries. The free-to-play game is expected to be monetized through microtransactions, though its final business model remains unclear during this "time-limited test." Progress may be reset for a global rollout, which has not yet been announced for Android or international markets.

Concurrently, Take-Two has sent a conflicting signal by shutting down its AI department. Former Head of AI Luke Dicken announced his layoff via LinkedIn on April 2, with no official comment from the company. This move directly contradicts Zelnick's recent assurances to investors. On the latest earnings call, he stated Take-Two was "actively deploying generative AI" across "hundreds of pilot projects and implementations" and insisted the technology would not be used as a lever for job cuts.

This decision fits a broader pattern of cost-cutting, including a five percent reduction in its workforce and a studio closure in 2024 aimed at saving approximately $165 million. Analysts are weighing these conflicting developments. Wells Fargo slightly trimmed its price target from $295 to $293 but maintains an Overweight rating. Of 28 analysts covering the stock, 26 recommend buying, with an average price target of $276.81.

The equity has struggled this year, trading roughly 20 percent below its January level and beneath its 200-day moving average. Investor focus remains overwhelmingly fixed on a single date: November 19, 2026, the confirmed launch for Grand Theft Auto VI. This title is the unequivocal catalyst, a fact underscored when the stock plunged 18 percent following a previous delay announcement. For now, the company continues to generate solid fundamentals, reporting net bookings of $1.76 billion in its last fiscal quarter.

Whether the AI department's dissolution is a strategic shift or simply pre-launch fiscal discipline ahead of its most expensive product launch ever is unclear. What is evident is that the gap between corporate rhetoric and reality does little to bolster investor confidence as the countdown to November continues.