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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?

Tags: games industry, digital content, physical media, take two

12/3/2010 8:48:40 PM John Shepard

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Comments (15 posts)

BikerSaint
Friday, December 03, 2010 @ 10:42:15 PM
Reply

I think I can speak for almost every serious collectors such as myself....

They can go all DL only after we're all dead & pushing up daisies!

That way we won't have to witness the sorry state of affairs in the future, the deathknell of collections, with all fugly looking memory sticks sitting in a row.


Just picture Fred Sanford with nothing to look foreward to but a digital junkyard.

No wonder he's clutching his heart with both hands & yelling out.....

"Elizabeth honey, I'm coming"........

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Fane1024
Saturday, December 04, 2010 @ 2:16:06 AM

98% of the community probably don't get your reference, but I did.

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Ludicrous_Liam
Saturday, December 04, 2010 @ 4:51:43 AM

You old farts XD

Just kidding. I can bet that was a quote of a film from 1950-something though lol.

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Orvisman
Sunday, December 05, 2010 @ 3:34:39 PM

@Liam,

Ummm... no!

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BikerSaint
Sunday, December 05, 2010 @ 9:23:16 PM

Liam,
No, it was a American television black sit-com in the early 1970's & was based on a British BBC how called "StepToe & Son".......

http://en.wikipedia.org/wiki/Sanford_and_Son

BTW, you can also check out some of those S&S episodes here....

http://www.youtube.com/results?search_query=Sanford+%26+Son&aq=f

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LittleBigMidget
Friday, December 03, 2010 @ 10:50:26 PM
Reply

I like DLC, but only when its used right. Examples would be RDR Undead Nightmare, the GTAIV DLC episodes, ect. I ate when DLC is abused *Stares at costume* But yeah, Digital Distribution will never take over and be successful over packaged gaming.

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LittleBigMidget
Friday, December 03, 2010 @ 11:09:11 PM

*I hate when DLC is abused. *Stares at Capcom** Sorry had to fix that, too late before I could edit.

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BikerSaint
Friday, December 03, 2010 @ 10:52:09 PM
Reply

On the horrible side of the coin....

There's EA Chief Executive John Riccitiello, who iss now on record telling the Reuters Global Media Summit just this past Monday...... stating that he expects to cut its slate of video game titles by as much as 40 percent next year as the company continues to invest heavily in its small but fast-growing digital and online businesses.

Well John, just remember that once you do that,

I'll be enjoying less & less of your games, as you'll be enjoying less & less of my money.



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BikerSaint
Friday, December 03, 2010 @ 11:01:29 PM
Reply

LBM,
Yeah, I can see a use for DL, but just give us the choice of freedom how we want to buy the game, & not try to slam it up our a$$es while saying "Tough Sh*T.

And agreed on DLC, if it's bonus material that either adds to, or a companion plot, then fine.
Just stop chopping up the game to charge us more for parts of it later, or as you said, useless trinkets that do nothing to immerse the game or story.

That's like giving Bill a case of fine cigars, & then trying to charging him for that special Monica Lewinsky....er.... ....holder!

Last edited by BikerSaint on 12/3/2010 11:03:39 PM

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___________
Saturday, December 04, 2010 @ 1:18:42 AM
Reply

which is wise.
the day i can download LBP in 1 hour is the day without having to worry about going over my limit DD will take over, till then.
well, i dunno how long it takes me to download LBP, been going for almost 8 hours now and only at 46%!
took me 5 hours yesterday just to download joe danger, a what 400MB game!?

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Snaaaake
Saturday, December 04, 2010 @ 2:55:41 AM
Reply

If there's any publisher dropping physical copy FOR GOOD, then expect me to drop my support to that particular publisher FOR GOOD.

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jaybiv
Saturday, December 04, 2010 @ 5:49:57 AM
Reply

Storage is the major constraint by my accounts. People have shown the ability to work around download speeds like setting the install up before going to sleep or when leaving the home for work/school. Storage is the white elephant in the room that no one wants to acknowledge. Downloads are cool until your 1TB hard drive is full. What is a consumer to do then?

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amzngskillz
Saturday, December 04, 2010 @ 9:12:40 AM
Reply

People seem to forget the PS3 timeclock glitch thing that caused all the systems to go down. When that happened I had no access to my downloaded games. In fact, the system was telling me I need to purchase them again. That was a nightmare which let me know that all digital is not a good idea. There is an inverse relationship with all digital with me. As alldigital increases my gaming involvement will decrease.

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AcHiLLiA
Saturday, December 04, 2010 @ 2:36:22 PM
Reply

I'm all hard copies and leave digital for smaller stuff. I wished we all had FIOS.

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BikerSaint
Sunday, December 05, 2010 @ 9:27:07 PM
Reply

Granted, DL does have it's place, but certainly not on my shelves in any of my gaming collections

Last edited by BikerSaint on 12/5/2010 9:30:42 PM

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