The topic of affordability is a much-discussed issue in the world of video games, and many other business sectors, with prices for products and services going up and creating an environment in which richer households now make up the majority of gaming hardware buyers. As part of Take-Two's latest earnings briefing, top boss Strauss Zelnick responded to the "affordability picture" for its fans ahead of the launch of GTA 6 in November.
To play GTA 6, you will need a gaming console, and those are getting more expensive, even five-plus years into their lifecycles, due in part to the impact of tariffs and other economic factors. Zelnick said "consumers do expect to pay" to be able to play compelling games, but the executive was more focused on talking about the affordability of games as opposed to hardware.
Zelnick said his aim continues to be to "deliver way more value than what we charge" with its games, so consumers feel like they got a good deal out of paying for a new game. "I think we're known for that," he said. The executive went on to say that Take-Two does not see itself as being "in the business of creating revenue," but instead that Take-Two is a company that entertains people, with the revenue following as a result. This is corporate speak, to be sure.
Zelnick also claimed that because people play Take-Two's games for "hours and hours and hours," they're getting "extraordinary value for the money." In terms of pricing for new games, Zelnick mentioned that prices have actually declined over the past 20 years. When GTA: Vice City was released in 2002, Rockstar charged $50 for it. That $50 roughly translates to $90 today after inflation.
New AAA games today sell for $70 in many cases. Nintendo tested the waters with selling Mario Kart World for $80, but that's not a perfect data point considering the game is also included in the $500 Mario Kart World bundle, and it's unknown how many people bought the game for $80 as opposed to picking it up in the bundle. In any event, some have said the AAA game business today is unsustainable in part because games have not seen a topline price increase.
Zelnick said he wants "everyone to be able to engage" with games, and that could come on console or PC, or mobile, where games are oftentimes free (with microtransactions or ads). "You want to have a great mobile experience. We offer the best mobile experiences on earth free. And you can play them, have a wonderful experience completely free," he said.
GTA 6 is Take-Two's biggest upcoming game, and one of the key things we don't know about it is how much it will cost. Some have predicted a $70 price point, while others have said it could go higher. No one knows right now. Preorders for the game are not yet available.
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To play GTA 6, you will need a gaming console, and those are getting more expensive, even five-plus years into their lifecycles, due in part to the impact of tariffs and other economic factors. Zelnick said "consumers do expect to pay" to be able to play compelling games, but the executive was more focused on talking about the affordability of games as opposed to hardware.
Zelnick said his aim continues to be to "deliver way more value than what we charge" with its games, so consumers feel like they got a good deal out of paying for a new game. "I think we're known for that," he said. The executive went on to say that Take-Two does not see itself as being "in the business of creating revenue," but instead that Take-Two is a company that entertains people, with the revenue following as a result. This is corporate speak, to be sure.
Zelnick also claimed that because people play Take-Two's games for "hours and hours and hours," they're getting "extraordinary value for the money." In terms of pricing for new games, Zelnick mentioned that prices have actually declined over the past 20 years. When GTA: Vice City was released in 2002, Rockstar charged $50 for it. That $50 roughly translates to $90 today after inflation.
New AAA games today sell for $70 in many cases. Nintendo tested the waters with selling Mario Kart World for $80, but that's not a perfect data point considering the game is also included in the $500 Mario Kart World bundle, and it's unknown how many people bought the game for $80 as opposed to picking it up in the bundle. In any event, some have said the AAA game business today is unsustainable in part because games have not seen a topline price increase.
Zelnick said he wants "everyone to be able to engage" with games, and that could come on console or PC, or mobile, where games are oftentimes free (with microtransactions or ads). "You want to have a great mobile experience. We offer the best mobile experiences on earth free. And you can play them, have a wonderful experience completely free," he said.
GTA 6 is Take-Two's biggest upcoming game, and one of the key things we don't know about it is how much it will cost. Some have predicted a $70 price point, while others have said it could go higher. No one knows right now. Preorders for the game are not yet available.
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