Take-Two CEO Says Streaming Could Soon Make Expensive Consoles Matter Less
Overview & Key Takeaways
A base PS5 or Xbox Series X|S console costs far more today than it did almost six years ago, but despite that, GTA 6 publisher Take-Two Interactive doesn't believe that the more-expensive gaming hardware will slow down its business or sales of the upcoming game. Speaking to investors as part of a briefing on its recent financial quarter, Take-Two CEO Strauss Zelnick did mention that lower-priced gaming hardware would still be preferable, but the current state of the technology could have a surprise silver lining.
"The rising cost of hardware is not a good thing. I don't think it will slow us down any because, you know, we're delivering, we believe we're delivering experiences that people want," Zelnick said. "However, a lower price point for hardware would be a good thing because there'd be more hardware in people's hands. Probably the most relevant thing is the world continues to move to open systems, and that will continue."
Zelnick added that PC used to make up a fraction of sales 20 years ago--around 2%--but in the years since then, the platform accounts for up to 50% of sales. The CEO believes the gap will only continue to grow, and cloud-streaming could also play a big role in bringing more games to more people--and that future isn't too far away, Zelnick believes.
"If you believe in streaming, and to be clear, we really do, and I'm happy to put a timeline on it. I think we'll be in commercial streaming mode within three years, and by commercial, I mean low latency. That can 10x the effective installed base. Now, it doesn't mean we're going to 10x our revenue--and we wouldn't project that we would--but because obviously your avid consumers already had access to video game machines. But I do think it creates great opportunity for titles that are broadly desirable, even outside of core markets."
While the idea of cloud-streaming games isn't new--RIP, Google Stadia--the technology behind it has continued to improve over the years, with Microsoft making big strides in this space. As for consoles, if you haven't bought one yet for highly anticipated games like GTA 6, you might not want to delay that decision for too much longer. Prices look set to increase again next year, while PC gamers are facing another tough year as the biggest manufacturers of RAM chips have reportedly sold out all their production for 2027.
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A base PS5 or Xbox Series X|S console costs far more today than it did almost six years ago, but despite that, GTA 6 publisher Take-Two Interactive doesn’t believe that the more-expensive gaming hardware will slow down its business or sales of the upcoming game. Speaking to investors as part of a briefing on its recent financial quarter, Take-Two CEO Strauss Zelnick did mention that lower-priced gaming hardware would still be preferable, but the current state of the technology could have a surprise silver lining.
“The rising cost of hardware is not a good thing. I don’t think it will slow us down any because, you know, we’re delivering, we believe we’re delivering experiences that people want,” Zelnick said. “However, a lower price point for hardware would be a good thing because there’d be more hardware in people’s hands. Probably the most relevant thing is the world continues to move to open systems, and that will continue.”
Zelnick added that PC used to make up a fraction of sales 20 years ago–around 2%–but in the years since then, the platform accounts for up to 50% of sales. The CEO believes the gap will only continue to grow, and cloud-streaming could also play a big role in bringing more games to more people–and that future isn’t too far away, Zelnick believes.
“If you believe in streaming, and to be clear, we really do, and I’m happy to put a timeline on it. I think we’ll be in commercial streaming mode within three years, and by commercial, I mean low latency. That can 10x the effective installed base. Now, it doesn’t mean we’re going to 10x our revenue–and we wouldn’t project that we would–but because obviously your avid consumers already had access to video game machines. But I do think it creates great opportunity for titles that are broadly desirable, even outside of core markets.”
While the idea of cloud-streaming games isn’t new–RIP, Google Stadia–the technology behind it has continued to improve over the years, with Microsoft making big strides in this space. As for consoles, if you haven’t bought one yet for highly anticipated games like GTA 6, you might not want to delay that decision for too much longer. Prices look set to increase again next year, while PC gamers are facing another tough year as the biggest manufacturers of RAM chips have reportedly sold out all their production for 2027.
