Rising prices for consoles, PCs and other gaming hardware are creating fresh concern for players. Take-Two CEO Strauss Zelnick agrees that more expensive equipment is a problem, but he believes the industry could soon rely less on dedicated game machines.
Speaking during Take-Two’s quarterly earnings call, Zelnick predicted that commercially viable, low-latency game streaming could arrive within three years. His view is that phones, tablets, PCs and other devices will increasingly serve as game platforms, expanding the potential audience for major releases.
Hardware costs are a concern, but not a roadblock
Zelnick described higher hardware prices as “not a good thing” because they could leave fewer people with suitable machines. Even so, he said the trend would not slow Take-Two’s business because the company is producing experiences that people want to play.
He also pointed to the growth of PC gaming over the past two decades as evidence that the market is moving towards more open systems. Streaming, in his view, could take that development much further by allowing devices that were never designed as game hardware to run demanding titles.
Zelnick expects streaming to scale quickly
“With the advent of streaming—which we really do believe is around the corner in terms of having something that’s low latency, and really works well for consumers—machines that weren’t game machines before will become game machines.”
Zelnick said he expects Take-Two to be operating in “commercial streaming mode” within three years. By that, he meant a service with low enough latency to work well for consumers. He suggested that streaming could increase the effective install base by as much as ten times, while stressing that this would not translate into ten times the company’s revenue.
The reason is straightforward: many dedicated players already own gaming hardware. The larger opportunity would be reaching people outside traditional gaming markets with broadly appealing software. Take-Two has titles it considers suitable for that wider audience.
Why cloud gaming has not taken over yet
Game streaming has been available on phones, tablets and PCs for years, but it has struggled to become a mainstream option for large AAA releases. Latency remains a technical obstacle, while many players still prefer physical controls and a conventional television-based setup.
Those limitations are being reconsidered as hardware prices rise. Analysts and industry specialists increasingly present cloud gaming as an alternative to buying a powerful console or PC. The popularity of large social experiences such as Fortnite, compared with more traditional single-player games, may also make streaming easier to justify if access becomes seamless.
For more industry developments, visit the RETROCADE Arcade Blog or browse our arcade industry videos.
Could GTA 6 be part of the shift?
Zelnick’s comments naturally raise questions about Grand Theft Auto 6. The game is not scheduled for a PC launch at release, leaving a significant part of the potential market outside its initial platform lineup. Take-Two’s comments about PC gaming make that omission particularly notable.
Grand Theft Auto 5 previously became available through Xbox Game Pass and PlayStation Plus as streaming technology developed, although it was later removed from Game Pass. That history offers no firm indication of what will happen with the next game, especially while the commercial cloud market remains unsettled.
Zelnick has made confident predictions about the direction of the games industry before, with mixed results. His three-year forecast will be worth revisiting: the key questions are whether low-latency streaming becomes genuinely dependable and whether Take-Two uses it to bring GTA 6 to a broader range of devices.
For readers comparing dedicated gaming hardware with other entertainment setups, RETROCADE’s arcade machine buying guide offers a practical place to start. You can also explore arcade machines or consider a compact bartop arcade.
Leave a Reply