Game prices are incredibly low in comparison to the value they provide, according to Take-Two Interactive’s CEO, Strauss Zelnick. In their Q2 earnings call for 2024, Zelnick highlighted the significant value players receive for the “very, very low” cost of each title. Despite this belief, the company’s reports demonstrate a successful year.
Take-Two generated $1.44 billion in net bookings for the quarter alone, surpassing their own expectations. Not only did they achieve success in this quarter, but the publishers of Grand Theft Auto are on track to reach their $5.55 billion goal for the entire 2024 fiscal year.
During the earnings call, Zelnick revealed the ongoing success of GTA V, which has sold 190 million units over its 10-year lifespan and continues to exceed expectations. GTA V still attracts over 50,000 concurrent players on Steam daily and ranks seventh among the top 100 games on the platform, as of publication. Rockstar, the developer of GTA V, consistently updates the game with new content and addresses any bugs to maintain its quality.
However, GTA is not the sole contributor to Take-Two’s success. Since its release on Oct. 20, 2018, Red Dead Redemption 2 has sold over 57 million units, surpassing the company’s expectations once again. This suggests that Take-Two could generate significant revenue by implementing a new pricing strategy.
Unity’s recent change in pricing should serve as a cautionary tale for Take-Two. Unity faced backlash after introducing a pay-per-install pricing strategy, which could have negatively impacted creators and their businesses. Following the backlash, Unity announced staff cuts and other cost-saving measures.
In conclusion, Zelnick’s belief that game prices are low in relation to their value is supported by Take-Two’s successful year. However, it remains crucial for the company to carefully consider pricing strategies in light of the challenges faced by other game developers.
Correction Nov. 19, 6:16 pm CT: In this article, it was previously suggested that Strauss Zelnick believes games should be priced based on hourly rates. However, these comments were made in response to a question about subscription pricing in the broader media landscape from Goldman Sachs analyst Eric James Sheridan. We apologize for the error.