During an earnings conference, Take-Two commented on the new pricing policy based on games at US$70. According to the company, the value is a natural trend of market movement and consumers not resisting more expensive titles.
The discussion focused on discounts offered by competitors “within days and weeks” after releasing a AAA game. Publisher CEO Strauss Zelnick commented that, in practice, this would not be a step backwards, but rather an adaptation by players to “limit their spending” (via VGC).
In this way, part of the fans would be spending less on other games and waiting for “blockbusters” to invest their savings. This would allow the $70 value to go unquestioned as the quality of the design would result in a better use of your time and money.
This is a growing business, it’s a unique market, and nothing that’s happening right now is inconsistent with the vision we’ve charted during the pandemic. We said at the time that we were benefiting greatly from people being at home due to a strange turn of events.
The CEO of Take-Two also uses its portfolio of upcoming releases as a basis to support the $70 argument. Without committing to names, he stated that “several hits and a wonderful catalog” of games will arrive in the coming months.
Take-Two believes in mid-gen consoles
The PS5 and Xbox Series generation is still reaching its peak, but Take-Two believes mid-period consoles can be released by manufacturers. Zelnick placed this situation as something “very likely” to happen and discussed the impacts of this on his business. Click here to learn more.