We recently reported on Take-Two Interactive releasing their financial reports for the past quarter. While the size of their revenue and profits was surprising, so much so that it surpassed Wall Street expectations, the reason of their financial success was expectable.
The vast majority of their revenue came from microtransactions being made by the weekly 8 million players of GTA Online. The company’s revenue increased by a massive 169%, with Take-Two closing a profitable quarter. This was opposed to the previous one which ended with losses.
In the case of some AAA companies, those numbers would prompt a shift in strategy, putting a lot more weight behind the digital business of the publisher. However Take-Two’s CEO Strauss Zelnick has reassured players that his company isn’t changing course. Take-Two will continue to publish several full-fledged AAA games with physical releases for years to come.
We need to be there for the consumer, we need to meet the consumer’s interest
Zelnick goes on to liken the situation of GTA Online to that of other financially successful MMOs like World of Warcraft, however stating some fundamental differences in their approach.
We aren’t blessed by having that IP here, and we are still operating based on building very significant, exciting high-quality releases and then continuing to engage with titles after release
Zelnick went on, taking GTA V as a primary example, to state how Take-Two’s strategy does not involve pumping out mediocre games, so by the time the players powered through one, the next is already waiting. Rather, they make few releases, however they make sure these are of the highest quality, and don’t shy away from delaying the title if they think it needs a few more passes before it is released to the fans.
Everytime we do that, we’re gratified by the results.
Are you guys satisfied with the effects this business strategy had on GTA V?
🙊What do you think? Sound off below!🙊