Why did Take-Two's operating expenses surge in 2023?

Take-Two's operating expenses surged in 2023 due to several factors: 1. **Acquisition-Related Costs**: The acquisition of Zynga in 2022 has significantly impacted operating expenses. The deal unified Take-Two's portfolio with Zynga's mobile franchises, benefiting top-line growth but increasing operating costs. 2. **Investment in Product Development and Advertising**: Take-Two has been investing heavily in product development and advertising to win market share, which has kept margins under pressure. This investment is likely to have increased operating expenses, especially in the fourth quarter, as evidenced by the surge in operating expenses in Q4 2023. 3. **Rising Costs tied to Mobile Game Development**: The cost of developing native video game titles for mobile games has been a concern for the company. This suggests that the costs associated with mobile game development have contributed to the overall increase in operating expenses. In summary, the surge in operating expenses for Take-Two in 2023 can be attributed to the acquisition of Zynga, investment in product development and advertising, and the rising costs tied to mobile game development.