Sections

Unprepared third-parties won’t survive next-gen transition, says Take Two CEO

Wednesday, 28th November 2012 15:51 GMT By Stephany Nunneley

Take-Two CEO Strauss Zelnick expects some third-party publishers will be unable to handle the transition to next-gen consoles, and ultimately going out of business should history repeat itself.

Speaking at the Credit Suisse 2012 Technology Conference, and reported by Gamespot, Zelnick said in order to handle the transition, publisher need to be prepared and positioned properly to avoid imminent failure.

“If you’re not capitalized for the transition, you can find out that you’re not there for the transition,” said Zelnick. “Historically, in every transition that’s occurred in this business, one or two third-parties have gone out of business. Last time around it was Midway and a couple of others. Reasonable people can argue about which one it’ll be this time. ”

Zelnick didn’t call out THQ specifically during his talk, but it’s easy enough to deduce which firm he was referring to.

“I have my own point of view, which I haven’t exactly been quiet about. We make sure we’re not on the list of casualties; to the contrary, we’re on the list of winners,” he said.

Zelnick said Take-Two will succeed in the new console market due to four “key elements”: strong financials, power, technology, and owned intellectual property – elements he said T2 is “competitive” in or “best in the business” in his opinion.

Latest

8 Comments

Sign in to post a comment.

  1. DarkElfa

    What is this dude’s hard-on for insulting THQ? Id he that threatened by them that he feels the need to tell everyone how bad they are while he simultaneously boosts his own company?!

    It makes no sense to me, everyone knows how solid T2 is so why the need to take pot shots at THQ mercilessly?

    #1 2 years ago
  2. Mike W

    @1

    I agree, I don’t know what his problem is with THQ. He is indirectly taking shots at the company for no apparent reason.

    #2 2 years ago
  3. Cobra951

    No apparent reason? THQ is very near the brink right now. That would put it close to Zelnick’s gloomy prediction from earlier in the year.

    http://www.businessweek.com/news/2012-11-21/thq-gains-breathing-room-from-lender-as-finance-chief-resigns

    #3 2 years ago
  4. Phoenixblight

    THQ is just a prime example what a new gen can do to an unprepared company and THQ has been barely staying afloat since the beginning of this gen. I doubt they will stay afloat before next gen.

    #4 2 years ago
  5. DSB

    THQ aren’t a victim of circumstance, they’re a victim of putting singleminded clowns in leadership positions.

    @3 That’s not exactly a reason why he would need to comment on their business though. Maybe the guy is just a douche.

    It’s not long ago that Take Two were being critisized for poor leadership themselves, but currently they’re the best of the worst in a games industry that seems to be pathologically underperforming.

    #5 2 years ago
  6. SameeR_Fisher

    I would hate to see THQ go away, it may not be the best, but they really got great franchises, Darksiders is one of my fav., there is Patrick new game ((creator of Assassin’s Creed)), I was sad they gave up Insane though.

    #6 2 years ago
  7. OlderGamer

    Doesn’t each gen come with winners and lossers tho? Devs and even pubs rising and failing is part of the industry. Right now the industry is in a hella flux. If the industry suffered a great depresions in the 1980s, I would then call this a great rescesion we are in now. New hardware, new biz models, new platforms(TV, Mobile, unknown? ), all could help lift us out of this rut.

    But really unless the global economic situation improves, entertainment industries will just have to get leaner and tuffer to survive. Right now, very few people are offering up value to the gamers. It is all about milking franchises and DLC that goes with them. That is hard on the wallet. Big budget games need to shrink(in market expectations, less games, bigger brands) or costs need to come down. My two cents.

    I think smaller and secondary pubs will continue to fall. Everytime a gamers buys CoD, EA Sports, or some other yearly release, there is less money for someone else to sell thair games. Untill that changes in the console space, fewer pubs will thrive on the lions share of the market.

    Thank the gaming gods for indie games.

    #7 2 years ago
  8. DarkElfa

    @3, even if they are on the brink, why i this guy trying to help push over?

    #8 2 years ago