Video game companies looking to capture more share of gamers' time must put forth nothing short of the "very best," Take-Two Interactive Software, Inc TTWO CEO Strauss Zelnick told CNBC in a Thursday interview.
What Happened
Take-Two's strategy to win market share is to produce a "limited number" of games that are of the "highest quality" and can succeed in global markets, Zelnick said.
For example, the "Red Dead Redemption" franchise is a Western-themed game that appears to have a "uniquely American" theme. Yet the title's international exposure is "just as powerful as any other game" and the franchise is "doing phenomenally well" in global markets, the CEO said.
Other video games that are seeing success in global markets include "NBA 2K," which boasts 40 million online users in China, Zelnick said.
Why It's Important
Take-Two's momentum comes at a time of regulatory scrutiny, as U.S. regulators are looking into "loot boxes" gamers purchase inside a video game for cash as a potential form of gambling.
Zelnick told CNBC that in-game randomized purchases are not a "significant" source of revenue — but in no way does it meet the standard for gambling.
What's Next
If U.S. regulators ban the use of randomized "loot boxes" in video games, Take-Two will simply drop the feature from future releases, Zelnick told CNBC.
"We pride ourselves on bringing people the most creative, the most entertaining properties that exist," he said. "Any particular mechanic [i.e "loot boxes"] doesn't really speak to the core of the business."
Related Links:
Why Bernstein Thinks Take-Two Is Set To Outperform
Sell-Side Analysts: Take-Two Is Not Playing Games
"Red Dead" screenshot courtesty of Take-Two Interactive.
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