Take-Two on DLC: “Not Trying to Extract the Last Nickel from Customers;” New IP Still Key to Strategy
During Take-Two Interactive’s financial conference call for the quarter ended on September 30th, CEO Strauss Zelnick talked about the company’s strategy with DLC and focus on the launch of new intellectual properties.
“I think with DLC, the focus of this company is overdelivering to our consumers. With Mafia III for example there will be free content updates coming. Rockstar Games has launched a lot of free content for GTA Online.
Our focus here is not trying to extract the last nickel from our customers. To the contrary, our focus is to deliver vastly more value than what we charge for. We think that creates extraordinary loyalty for our brands, our labels and for our company’s products. And ultimately, overdelivering for our consumers equilibrates with overdelivering for shareholders.”
Zelnick also mentioned that creating and launching new IP is still key to the company’s strategy, even if it’s important to be selective and focused on quality. And even then, things don’t always work out as planned.
“As far as new intellectual properties, look, nearly every year since this management team took over, we launched successful new IPs. We do think that any solid entertainment company is constantly creating new hits in addition to bringing beloved franchises back to market.
You’re absolutely right. It’s very challenging to do that, and it is risky to do that. We’re not always successful, but it remains a key part of our strategy on an ongoing basis.
But when I say that, I should probably put a very find point on our selectivity. Given the amount of investment that’s required, we have to be incredibly disciplined, and that that means is that our creative teams are encouraged to focus on something that they’re incredibly passionate about.
I would say we are all, everyone in this company, laser focused on quality. And again, even that doesn’t always work out according to plan, but more often than not it does.”