Video game publisher Take-Two Interactive is “not seeing a pushback” on its $70 games, according to a recent statement by CEO Strauss Zelnick. Zelnick reported the company’s findings in an investor’s call during the publisher’s quarterly earnings report, stating that consumers are instead “limiting their spending” by being more mindful of the games they purchase.
Here’s the quote from the investor’s call:
We’re not seeing a pushback on frontline price. What we’re seeing is consumers are seeking to limit their spending by going either to the stuff they really, really care about, blockbusters, or to value, and sometimes it could be both. And the good news is, we have a bunch of blockbusters and we have a wonderful catalogue.
The other news is we have a robust frontline release schedule and without regard to price, there has been some pressure, as a result, if a consumer sees something that’s interesting but not necessarily yet a huge blockbuster. We think that will change. This is a growth business, and this is a unique market, and nothing that’s going on now is inconsistent with the view that we outlined during the pandemic.
Interestingly enough, Take-Two Interactive was the first video game publisher to introduce a $70 tag to AAA games, with NBA 2K21 ushering in a new standard price point for mainstream video game titles. Soon after the release of NBA 2K21, other publishers and companies followed suit, and seeing $70 slapped onto a “blockbuster” game is the norm these days.
Zelnick also made a statement on the use of artificial intelligence in video game development during the investor’s call, claiming that it wouldn’t be able to make “hit games” the same way that humans do. You can read about his full statement here.