In an era where Microsoft has devoured Activision Blizzard and placed Call of Duty in Game Pass, while EA has had their EA Play subscription service for many years, one major gaming company that remains uninvolved in the subscription service trend is Take-Two Interactive. Recently, CEO Strauss Zelnick confirmed in an interview with GamesIndustry that they will not be joining the bandwagon.
Zelnick discussed the integration of Call of Duty into Game Pass, acknowledging that bringing a game of such magnitude into a subscription service would undoubtedly boost Game Pass membership numbers. However, Take-Two has opted not to follow suit as it does not align with any of their current business strategies.
He also addressed Take-Two’s direction following a recent round of layoffs, emphasizing the need to enhance business efficiency. The division most affected by the layoffs was Private Division, responsible for distributing indie games developed externally. Zelnick stated that while they continue to engage in game distribution, they are selective in choosing titles that are likely to succeed.
Another point of discussion was the transition to the next generation of console gaming. Zelnick acknowledged that a considerable number of players still remain on older consoles such as the PS4, resulting in a slower transition compared to previous generations. However, the eventual shift to newer consoles is inevitable, with blockbuster titles like GTA 6 exclusively supporting the latest consoles.
Zelnick also touched upon the prolonged development cycles of modern games, citing the example of GTA 6, which will have a 12-year gap from its predecessor GTA 5. During this period, Rockstar only released one game, Red Dead Redemption 2 in 2018. To compensate for the extended development time, Zelnick mentioned other businesses within the group, such as the annual release of sports title sequels by 2K or shorter development cycles for mobile games by Zynga.
Source: GamesIndustry
TLDR: Take-Two Interactive bucks the trend of gaming subscription services, prioritizing business strategies over mainstream movements, as CEO Strauss Zelnick emphasizes efficiency and selective game distribution while navigating the transition to the next generation of consoles and adapting to longer development cycles in the gaming industry.
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