Take-Two CEO Slams Microsoft’s Xbox Game Pass Strategy for New Releases: ‘It Doesn’t Make Sense’

Microsoft’s aggressive push to get players hooked on Xbox Game Pass by offering day-one access to major titles like Black Ops 6 has sparked debate within the gaming industry. While Microsoft aims to shift consumer behavior towards digital-first subscriptions, not every publisher is on board. Take-Two Interactive, the company behind franchises like Grand Theft Auto, has a different approach to game subscriptions.

Take-Two CEO Strauss Zelnick believes in the power of subscriptions, but only when they benefit the publisher. The company’s success with GTA+ is a prime example – this subscription service for Grand Theft Auto Online has seen significant growth since its launch, boosting the franchise’s overall revenue alongside the inclusion of GTA V and GTA Online on services like Xbox Game Pass. However, Zelnick maintains a clear distinction between Take-Two’s philosophy and Microsoft’s.

Take-Two’s strategy revolves around offering older, established games on subscription services, allowing them to reach a wider audience and generate additional revenue. But releasing new, premium titles day-and-date on Game Pass, as Microsoft does, is something Zelnick considers a “big missed opportunity.” He argues that such a strategy could discourage players from purchasing the full game, especially for franchises like Grand Theft Auto, which rely heavily on initial sales.

In an interview with GamesIndustry.biz, Zelnick stated, “I think that offering a frontline title with a premium price in a subscription service, day and date, will push consumers to that subscription service for at least a period of time. No, it won’t affect our decisions because our decisions are rational.”

Zelnick’s stance underscores the fundamental differences in approach between Microsoft and Take-Two. While Microsoft is aggressively pursuing a subscription-driven future for gaming, Take-Two remains committed to the traditional model of upfront game sales, supplemented by microtransactions and the inclusion of older titles on subscription services. It remains to be seen whether Microsoft’s aggressive strategy will ultimately succeed in changing consumer behavior, or if publishers like Take-Two will continue to resist the allure of day-and-date releases on subscription services.

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