Speaking on the sidelines of a conference organized by Goldman Sachs, the CEO of Take-Two, Strauss Zelnick, investigated the delicate issue of development costs on next-gen and, as far as consumers are concerned, the price of games on PS5 and Xbox Scarlett.
In addressing this issue with the investors of the gaming giant who owns the rights to the Grand Theft Auto and Red Dead Redemption series, Zelnick stated that “with the next-gen, we don’t really expect that the development costs will vary compared to those of this generation. Every time we have a new technology, this allows us to do more and as a result, the developers want to exploit it to the point of increasing production costs, but our current expectations for next-gen are those of those who believe that we will not see an increase in costs. The times in which we have seen a peak in costs coinciding with the launch of a new generation of consoles and hardware have long since passed “.
In confirmation of his statements, the CEO of Take-Two reminds his interlocutors that “it is really the first time that the videogame industry has gone through this phase without anyone having gone bankrupt. The world has changed: if we think of a game current multi-platform, the PC version generates 40 or 50% of revenue, while ten years ago it generated 1 or 2%, which means that a previously closed system is turning into an open system, and it also means that if before the hardware was a kind of tax to be paid to get a certain software now it is no longer, and this is great news for us . “
In the future outlined by Zelnick, therefore, video game developers will not have to increase their costs to “keep up with next-gen” and exploit the computational resources of PCs and consoles of the future. It is no coincidence, therefore, that in May of this year the boss of Take-Two spoke out in favour of the advent of PS5, Xbox Scarlett and Google Stadia.