What’s on the horizon for Take Two Interactive?
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What’s on the horizon for Take Two Interactive?

Video games are worth $82 billion worldwide, and the market is still growing at an incredible pace. Recently, the industry hosted its biggest annual trade show in Los Angeles, the Electronic Entertainment Expo (E3), and all the big names were in attendance. One of those names was Strauss Zelnick, the CEO of Take Two Interactive. Take Two is a major player in the space, responsible for blockbuster franchises like Grand Theft Auto and Red Dead Redemption. Here’s what Zelnick had to say about the company’s future.

Take Two’s share price has edged up over the past 30 days

graph 2006 taketwo

SOURCE: Yahoo Finance

The biggest news coming out of the company by far was the update on Red Dead Redemption 2. This game, a sequel to the massively successful 2010 title Red Dead Redemption, which shipped more than 15 million copies and was met with broad acclaim from critics and fans alike, is due to hit stands in October of this year. Zelnick says “it’s looking good” and was keen to dismiss some of the myths around modern game development, saying that there were people “saying that it won’t work if it’s not a free-to-play battle royale.” He noted, a tad incredulously, that “people are really saying that, and not even tongue-in-cheek.”

According to Zelnick, this view is both lazy and shortsighted. He countered: “Single-player, in my opinion, is not dead, not even close. Companies that feel like they’ll just avoid the hard work of building a story and characters and go right to where the money is in multiplayer, I don’t think that’s going to work. I’d be surprised.” He added that Take Two was under no illusion that online play was all gamers wanted “because they’re still playing Grand Theft Auto V.”

Zelnick also said that the company was looking to expand into social and mobile gaming – although as of yet, the exact manner in which it would do so was up for debate. Speaking to the wider issues of innovation and keeping games fresh, he said:

“We say that our strategy is to be the most creative, the most innovative, and the most efficient. We really encourage our creative teams to follow what they’re passionate about. We give them a lot of resources to do that. We don’t tend to be focused on what used to work – “Let’s replicate what used to work.” We’re very focused on what’s on the cutting edge, what’s going to engage and entertain consumers in the future. We’re willing to take measured risk. When we get it wrong, we’re collaborative with the studios. We don’t point fingers. That’s a recipe for encouraging people to do their best work.”

Disclosure

Dominion holds Take Two Interactive, as well as a number of other video game makers and publishers, in its Global Trends Ecommerce Fund.


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The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.