Take-Two’s financial report was the hot topic today, wasn’t it? It revealed the latest sales figures of one of the most beloved franchises Grand Theft Auto and the franchise’s biggest game to date, GTA 5, which has sold over 170 Million copies worldwide as of the latest report.
But that was not it; the conference call afterward with Take-Two’s CEO, Strauss Zelnick, CFO Lainie Goldstein, President Karl Slatoff, and Nicole Stevens-Senior Vice President of Investor Relations and Corporate, revealed many interesting insights about the company’s financials and IP’s. There was also extensive discussion on the company’s recently acquired studio Zynga and its performance in the mobile gaming division.
Well, even that wasn’t the most exciting part; the real deal started when the questions and answers session began with the company’s CEO and other officials. And as reported by Tech4Gamers, when Strauss Zelnick was asked about releasing their future games with subscription services like Xbox Game Pass and PlayStation Plus, he clearly said that the company has no plans yet to implement a subscription model for their games.
However, Strauss answered this question very thoroughly, and first, he explained their relationship with companies like Microsoft and Sony, who are behind significant subscription services, Xbox Game Pass and PlayStation Plus.
On the subscription side, look, we’ve been very cooperative with both Sony and Microsoft on their subscription offerings when it makes sense for us. And my own views have not changed at all since I first started talking about subscription, which is now, I want to say, probably four years ago.”
This statement could be referring to the time when the majority of the Grand Theft Auto games, if not all, were available on Xbox Game Pass, and even the Red Dead Redemption series was there. Not only that, you can still find the GTA Vice City Definitive Edition on PlayStation Plus.
Further, he explained why the subscription model will not work best with their games as, according to him, their games are in the interactive genre of entertainment and how interactive games distinguish themselves from linear entertainment.
The interactive entertainment business is very different than the linear entertainment business. People consume far fewer hours of interactive entertainment in a given month than they do of linear entertainment.
And within that consumption, there are far fewer titles consumed in interactive entertainment than there are with linear entertainment.
I think the answer is no, to offer frontline titles day and day with titles on a subscription service. I don’t think that ever made sense.”
After giving a clear answer ‘no’ plans as of yet to bring their future games day one on subscription services, Strauss Zelnick explained what type of games works for the subscription services and what audience these services target.
There probably is a subscription business. It’s a catalog business. It’s probably best aimed at very avid consumers because those are the consumers who are interested in playing catalog titles, implying a whole bunch of different titles in a given month. But I don’t think it’s a mass market service that supplants the interactive entertainment business as we know it at all.”
So, Strauss pretty much made it crystal clear that no future Take Two games will be on the subscription services. He made his point very clear and presented a solid argument regarding why they can’t implement a subscription model in their distribution methods.
What are your thoughts about Take-Two’s stance regarding subscription services? Are you comfortable with this decision and happy to buy full games separately? Let us know in the comment section below.