Take-Two Interactive’s CEO, Strauss Zelnick, suggests that video games should be priced based on the number of hours played rather than a one-time upfront payment. This idea has raised concerns among gamers who prefer more affordable options. However, Zelnick acknowledges that publishers lack the power to implement such changes and are not currently considering this pricing model. He emphasizes the value that players receive from games, despite their relatively low cost.
In the Q2 earnings call for 2024, Take-Two reported net bookings of $1.44 billion, surpassing their own expectations. The company is on track to achieve their goal of $5.55 billion for the entire fiscal year. Zelnick also highlighted the ongoing success of Grand Theft Auto V (GTA V), which has sold 190 million units over its 10-year lifespan and continues to exceed expectations. GTA V remains popular with over 50,000 concurrent players on Steam daily and ranks seventh among the top 100 games on the platform.
Take-Two’s success extends beyond GTA V. Red Dead Redemption 2 has sold over 57 million units since its release in 2018, surpassing the company’s projections. While a change in pricing strategy could potentially generate significant revenue, Take-Two has not indicated any plans to do so.
It is worth considering the cautionary tale of Unity, a game engine developer that faced backlash after implementing a pay-per-install pricing strategy. This decision threatened the livelihood of creators and led to negative consequences for Unity, including staff cuts and cost-saving measures. Take-Two would be wise to carefully evaluate all options before making any changes to their pricing structure.
Overall, Take-Two’s CEO recognizes the value and affordability of their games, as evidenced by their strong financial performance. While the idea of pricing games by the hour may be intriguing, it is unlikely to be implemented in the near future.
Source: DOTESPORTS
