Take-Two games will appear on streaming platforms – but boss thinks they’re overhyped
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Take-Two games will appear on streaming platforms – but boss thinks they’re overhyped

Take-Two Interactive CEO, Strauss Zelnick, has recently spoken out about one of the major shifts imminent in gaming’s future: the creation of massive streaming services, often billed as ‘Netflix for video games.’ With Google, Apple, Amazon and others looking to create these platforms, which will let users stream a huge selection of games through their devices for a subscription, Zelnick has confirmed that Take-Two’s titles will be present on such platforms. That said, he has doubts they’ll live up to the hype – at least in the near term.

Take-Two Interactive’s share price has appreciated by 24% in the last three months

Take Two July 8

Source: Yahoo Finance

Last year, Xbox chief Phil Spencer highlighted the potential these services have to drive growth in the video game industry. He told Business Insider: “There are 2 billion people who play video games on the planet today. We're not going to sell 2 billion consoles. Many of those people don't own a television; many have never owned a PC. For many people on the planet, the phone is their computing device.”

Zelnick says he sees the logic in this, but has his doubts nonetheless. He told reporters recently: “There may be some disappointment that the market increase won't be as large as some people think. I don't think it's as simple as there are a couple billion phones out there, and only a couple hundred million consoles out there, so the market will grow by 10 or 20x. I think that's facile. If the market doubled that would be a great thing, if we maintained our market share. And even if the market went up by 20%, we'd take that.”

Why the scepticism? In short – history: “Typically equations like that don't work out — you read those in like startup venture capital fundraisers. 'Our total addressable market' — if only 5% of the people who currently buy coathangers buy our coathanger, our company will have $20 billion dollars in revenue. And the answer is, well, you didn't get 5%. You didn't get .5%. You didn't get. 0005%. In fact no one bought your damn coathangers. So you just don't know until it occurs.”

That said, Zelnick did say that Take-Two’s games, including world-leading franchises like Grand Theft Auto and Red Dead Redemption won’t ignore these platforms – if there’s growth to be had, then the gaming giant wants its share.

Disclosure

Dominion holds Take-Two Interactive in its Global Trends Ecommerce Fund.


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