TAKE-TWO INTERACTIVE SOFTWARE, INC. 2020 ANNUAL REPORT 3 Generated significant cash flow and ended the year with $2.00 BILLION in cash and short-term investments Delivered record Net Bookings of Net Bookings from recurrent $2.99 BILLION consumer spending grew exceeded original FY20 outlook by nearly 20% 34% to a new record and accounted for units sold-in 51% 10 MILLION to date of total Net Bookings Up over 50% over Borderlands 2 in the same period One of the most critically-acclaimed and commercially successful video games of all time with over units sold-in 130 MILLION to date Digitally-delivered Net Bookings grew Developers working in game development and 35% 4,300 23 studios around the world to a new record and accounted for Sold-in over 12 million units and expect lifetime units, recurrent consumer spending and Net Bookings to be 82% the highest ever for a 2K sports title of total Net Bookings TAKE-TWO INTERACTIVE SOFTWARE, INC. 2020 ANNUAL REPORT DEAR SHAREHOLDERS, Fiscal 2020 was another extraordinary year for Take-Two, during which we achieved numerous milestones, including record Net Bookings of nearly $3 billion, as well as record digitally-delivered Net Bookings, Net Bookings from recurrent consumer spending and earnings. Our stellar results were driven by the outstanding performance of NBA 2K20 and NBA 2K19, Grand Theft Auto Online and Grand Theft Auto V, Borderlands 3, Red Dead Redemption 2 and Red Dead Online, The Outer Worlds, WWE 2K20, WWE SuperCard and WWE 2K19, Social Point’s mobile games and Sid Meier’s Civilization VI. Net revenue grew 16% to $3.09 billion and Net Bookings grew to $2.99 billion. As of March 31, 2020, we had $2.00 billion in cash and short-term investments. OUR KEY ACHIEVEMENTS Q We delivered record digitally-delivered net revenue and Net Bookings. Digitally-delivered net revenue grew 41% to $2.38 billion and digitally-delivered Net Bookings grew 35% to $2.44 billion. Q We generated record net revenue and Net Bookings from recurrent consumer spending. Recurrent consumer spending accounted for 45% of total net revenue and 51% of total Net Bookings. Q We released NBA 2K20, which we expect to generate the highest lifetime units, recurrent consumer spending and Net Bookings ever for a 2K sports title. Our industry-leading basketball series continues to expand its audience and underscores that NBA 2K remains the perennial favorite among both basketball and pop-culture fans. In addition, The NPD Group noted that NBA 2K20’s launch month sales were the highest for any sports game in history, and the NBA 2KK series is now the 6th largest video game franchise based on tracked full-game dollar sales. To date, NBA 2K20 has sold-in over 12 million units, up 33% over NBA 2K19 in the same period. For the full year, recurrent consumer spending on the NBA 2KK franchise grew nearly 30% to a new record and remained the largest contributor to that part of our business. Consumer engagement with NBA 2K was at record levels throughout fiscal 2020 with Daily Active Users growing 13% and MyTEAM users increasing nearly 50%. Q Nearly seven years after their launch, Grand Theft Auto V and Grand Theft Auto Online continued to be significant contributors to our results. Grand Theft Auto V has sold-in over 130 million units, cementing further its standing as the “must-have” title of the current console generation. The positive momentum for Grand Theft Auto Online continues, with superlative performance in both players and Net Bookings. Since the July 2019 launch of The Diamond Casino & Resortt update, Grand Theft Auto Online achieved its best ever Monthly Active Users in both July and August 2019, and then grew sequentially each month from December 2019 through March 2020. This exceptional engagement helped to drive record recurrent consumer spending, which grew 40% for the full fiscal year. Q We released Borderlands 3, the latest installment in our genre-defining shooter-looter series. The title has sold-in over 10 million units, up 50% over Borderlands 2 in the same period. The Season Pass attach rate for Borderlands 3 is the highest in 2K’s history and there is more content coming. Borderlands 3’s Monthly Active Users steadily climbed in each month during the fourth quarter 1 of fiscal 2020 and, in March, had the largest influx of new players since launch due to its release on Steam. We attribute this success in part to 2K’s and Gearbox Software’s continued efforts to support Borderlands 3 as a live service game, with weekly events, free content drops, and consistent communication with fans that should continue to benefit the title and series over the long-term. QTo date, Red Dead Redemption 2 has sold-in more than 31 million units worldwide. The title remains tied with Grand Theft Auto V as the highest-rated game on PlayStation 4 and Xbox One, with a 97 Metacritic score. Red Dead Online exited the Beta period on May 14, 2019 and was supported with an array of additional content throughout the year that drove momentum in both engagement and recurrent consumer spending. Net Bookings more than tripled for the full fiscal year, excluding digital content bundled with the Red Dead Redemption 2 premium editions. Throughout the coming year, Rockstar Games will continue to support both Red Dead Online and Grand Theft Auto Online with more content updates to keep new and returning players excited and engaged. Q Our Private Division label launched their most successful release to date with The Outer Worlds. The title has significantly exceeded our expectations with more than 2.5 million units sold-in to date. The Outer Worlds is a perfect example of how Private Division can complement our core portfolio selectively and contribute meaningful results to our bottom line. Q We announced, together with The National Football League (NFL), a multi-year partnership encompassing multiple future video games. The partnership marks the return of football-themed games to 2K’s stable of notable sports titles and original IP, as well as an expansion of video game properties for the NFL. The games will be non-simulation football experiences, which will launch starting in calendar year 2021, during fiscal 2022. Q W e announced WWE 2K Battlegrounds, a completely new gaming experience that will feature arcade-style action and over-the-top Superstar designs, environments and moves. In conjunction with this announcement, we said that we are extending the production timeline and will not be releasing a WWE 2K simulation game in fiscal 2021. Q We announced that 2K Silicon Valley, the label’s wholly-owned development studio founded in February 2019 and led by video game industry veteran Michael Condrey, will officially be known as 31st Union. Condrey is best known for co-founding Sledgehammer Games and leading development for the renowned Call of Duty franchise. Condrey also served as Chief Operating Officer and Director at Visceral Games, which established the popular Dead Space franchise. The studio is currently working on an unnamed project and plans to expand its presence internationally, beginning with a new studio located in Spain. Q We announced the founding of Cloud Chamber, the newest wholly-owned game development studio under our 2K label. Cloud Chamber will build its team at two locations: 2K’s San Francisco Bay Area headquarters in Novato, California, as well as in Montréal, Québec, which marks the first- ever Canada-based 2K studio. Cloud Chamber has started work on the next iteration of our globally acclaimed BioShockk franchise, which will be in development for the next several years. Q We announced the formation of Intercept Games, the first wholly-owned game development studio under the Private Division publishing label. The Seattle-based studio is currently working on Kerbal Space Program 2, the next iteration of the popular space simulation franchise that is expected to launch in Fall 2021. Q Social Point remained a meaningful contributor to our results through its two biggest mobile titles, Dragon Cityy and Monster Legends, as well as Tasty Town and World Cheff. During fiscal 2020, our Barcelona-based studio launched Word Life, a new game within the popular crossword puzzle category. Social Point is hard at work on its exciting development pipeline, including more than 10 new games planned for launch in the coming years. 2 TAKE-TWO INTERACTIVE SOFTWARE, INC. 2020 ANNUAL REPORT OUR RESPONSES TO COVID-19 AND RACIAL INJUSTICE At Take-Two, our number one priority is the health and safety of our employees and their families. All of our offices moved largely to work-from-home environments by mid-March. We are continuing to find ways to support our employees and their families as we navigate through this unprecedented situation. The digital nature of our content means our creative talent can continue to work on game development from home. The shift to remote working adds complexity and challenges in some areas of the game development process; however, based on our work to date, we currently do not expect any delays other than what has been announced. There is no doubt that our recent results have benefited from people sheltering at home, as players have sought interactive entertainment to stay connected and engaged with friends and family. The connections and communities built will remain in place once people resume their normal activities and should continue to benefit our industry’s results. We are fortunate to work in an industry that can bring some positivity in a difficult time. For the months of April and May 2020, our labels came together to donate 5% of Net Bookings (after platform fees) from in-game purchases from Grand Theft Auto Online and Red Dead Online from Rockstar Games, NBA 2K20 and NBA 2K19 from 2K Games, Dragon Cityy from Social Point, as well as from full-game digital sales of The Outer Worlds from Private Division, to support an array of COVID-19 charities and local businesses in need.