Take-Two Reacts To Game Pass-Like Subscription Services

Once again, Take-Two CEO Strauss Zelnick has responded to the financial situation surrounding subscription services like Game Pass. His views are unchanged--subscription services make sense of catalog games but not new ones. This is a point he has been stressing for years already. He also questions if it's possible for everyone in the chain--developers, publishers, and consumers alike--to come out ahead.

"Our views remain unchanged. We think a subscription model can make sense for deep catalog titles. But it doesn't really make sense for frontline titles. For any business model to make sense in the entertainment business, it has to work for the creators of the entertainment as well as the consumers of the entertainment. I think catalog can make sense for the publishers, it can make sense for the consumers who are avid, who really want access to a lot of product. But if you're getting into frontline product, then the economics are much more difficult to make sense of," he said during Take-Two's earnings call.

Zelnick observed that "consumption patterns" for a streaming service like Netflix--which offers linear entertainment (for now at least)--are different from interactive entertainment.

Continue Reading at GameSpot
Filed under: Video Games

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