Take-Two Unconcerned About Rise Of Digital Content
As downloadable games get bigger and bigger, and come closer and closer to resembling their $60 cousins, many see the future as entirely digital.
But as many analysts and industry insiders have said in the past, that future is still a ways off. Speaking at the Reuters Global Media Summit, Take-Two CEO Strauss Zelnick said his company isn't too concerned about the digital explosion. While he admits that delivery of games in the downloadable realm will increase, and Take-Two expects to see a larger percentage of profits from digital content in the future, it's "irrelevant" right now.
"I still think in five years the packaged goods business will dominate. It's kind of irrelevant to us -- basically the same gross margin, basically the same risk."
It's true that companies like EA have seen big growth in digital content, but downloadable and mobile revenue only comprise about 10% of Take-Two's total business. Zelnick says that could increase to 25-30% "over time." Of course, we collectors like to hear this; while we don't necessarily despise the digital boom, we will always prefer our physical, tangible collection. Let's not rush into the future, okay?
12/3/2010 8:48:40 PM John Shepard