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.

Source: Take-Two Interactive Investor’s Call

Take-Two CEO Strauss Zelnick has recently made a statement on artificial intelligence and its use in video game development. Zelnick, who answered questions during the publisher’s quarterly earnings report, cited that while it can be used as a tool to speed up workflow, it won’t be able to “create hits” the same way that humans can.

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Here’s what Zelnick had to say about AI in game development:

As you know I’m usually a skeptic when others engage in hyperbole, [but] in the case of AI I’m pretty enthusiastic. First of all, despite the fact artificial intelligence is an oxymoron, as is machine learning, this company’s been involved in those activities, no matter what words you use to describe them, for its entire history and we’re a leader in that space.

While the most recent developments in AI are surprising and exciting to many, they’re exciting to us but not at all surprising. Our view is that AI will allow us to do a better job and to do a more efficient job, you’re talking about tools, and they are simply better and more effective tools.

I wish I could say that the advances in AI will make it easier to create hits, obviously it won’t. Hits are created by genius. And data sets plus compute plus large language models does not equal genius. Genius is the domain of human beings and I believe will stay that way.

Zelnick’s stance on AI echoes that of many artists, designers, and developers, who have recently had their professions challenged by the capabilities of modern artificial intelligence. Treating AI as a tool, and not as a wellspring of ideas, seems to be Zelnick’s frame of mind, though it will be interesting to see how Take-Two (and other video game companies) take advantage of the technology in ways that don’t replace the creativity of the human mind.

Source: Take-Two Interactive Investor’s Call