Take-Two CEO Strauss Zelnick recently discussed the impact of putting a game like Call of Duty into Game Pass, stating that it could potentially drive consumers towards subscribing to the service. While Take-Two does support subscription services through its legacy titles, the company has been hesitant to release brand new AAA games into the service on the day they come out. Zelnick emphasized the importance of making economically sound decisions for the business.
With Xbox including Call of Duty: Black Ops 6 in Game Pass this October, Zelnick acknowledged that offering a frontline title with a premium price in a subscription service could attract consumers for a period of time. However, he maintained that this move by Microsoft would not influence Take-Two’s decisions regarding subscription services, as the company prioritizes rational decision-making.
Despite some modest growth in Q1, Take-Two has faced challenges with core properties like GTA Online and NBA 2K not delivering the expected growth. The company has implemented cost-cutting measures to adapt to the changing landscape of the games industry post-pandemic. Zelnick expressed confidence in Take-Two’s current size and efficiency, emphasizing the company’s focus on creativity and innovation.
One area that has seen changes within Take-Two is its Private Division label, which has undergone restructuring and layoffs. However, the company continues to support independent releases and has narrowed down its pipeline to focus on titles with the most potential for success.
The highly anticipated Grand Theft Auto 6 is expected to be the biggest entertainment launch in history, with a release window set for the end of 2025. Zelnick addressed concerns about gamers still using previous generation consoles, stating that the company’s strong catalogue of legacy titles continues to generate revenue. He remains optimistic that players will eventually transition to new hardware.
While some games in Take-Two’s lineup have experienced long development cycles, Zelnick noted that the company has seen quicker market entry for mobile games. The firm has announced plans to release several immersive core games, mobile titles, and remasters over the next few years, with a focus on delivering big hits to outperform the industry.
In conclusion, Zelnick remains confident in Take-Two’s ability to navigate the challenges of the games industry and deliver successful titles. Despite the evolving landscape of gaming, the company is committed to innovation, efficiency, and generating growth through compelling game experiences.