Take Two CEO Interested in Purchasing Studios, Still Focusing on Retail
“There’s no question this company is in growth mode” according to Strauss Zelnick.
Following the release of Take Two Interactive’s fourth quarter and fiscal year financials, CEO Strauss Zelnick spoke about purchasing additional studios to add to its group.
Speaking to Games Industry International, Zelnick talked about the revenue the company had earned and what it could be used for. “We have the opportunity to support organic growth with our balance sheet. We also have the ability to do inorganic growth. And we have the opportunity to return money to our shareholders.”
That “inorganic” growth involves picking up existing game studios. While Zelnick and Take Two have built up the internal studios over time, it’s not against purchasing a studio that is in line with their approach. “If there’s an opportunity to grow inorganically with a company that’s consistent with our disciplined approach, then we would absolutely do so. There’s no question this company is in growth mode.”
As for digital distribution – with digital revenue increasing by 65 percent over the previous year for $435.1 million – Zelnick is excited for the same but will continue to focus on traditional retail sales.
“We’re very excited about what digital distribution allows us to do. Among other things, it has allowed us to build this significant recurring revenue model. But typical retail is still (up to) 80 percent of the market. Our view is bring consumers the best products on whatever devices they have and otherwise be flexible about the channels used to get it to them.”
Take Two Interactive recently announced shipment figures for its biggest releases of the past year, with Grand Theft Auto 5 shipping 33 million units. Stay tuned for more information.