Take-Two CEO Predicts Streaming Dominance Within Three Years, Cites GTA 6 as Key Test
Take-Two Interactive CEO Strauss Zelnick anticipates the video game industry will transition into ‘commercial streaming mode’ within the next three years. This prediction comes amidst challenges facing the industry, including rising chip costs impacting console development and potential delays for the PlayStation 6 and next-gen Xbox (Project Helix).
Industry Faces Hardware Challenges
Zelnick acknowledged the negative impact of increased hardware costs, stating that cheaper hardware leads to greater accessibility, a desired outcome for software companies. However, he believes video game streaming will significantly mitigate this issue. Currently, streaming services offer a less-than-ideal gaming experience compared to local play, with concerns regarding responsiveness, visual fidelity, and latency. Despite this, Zelnick expresses optimism that high-quality streaming is “around the corner,” anticipating low-latency gaming capabilities.
Streaming Timeline and GTA 6’s Role
Zelnick predicts that streaming technology will evolve to a point where “machines that weren't game machines before will become game machines,” potentially expanding the installed base. He forecasts that by 2027, the industry will be operating in ‘commercial streaming mode,’ defined by low latency. He estimates this could potentially increase the effective install base by tenfold. Crucially, Zelnick emphasized that for streaming to truly gain traction, it must deliver a comparable experience to traditional consoles, citing GTA 6 as a critical benchmark. When questioned about this timeframe during an interview with IGN, he stated, “I think for streaming to matter, it would have to do that. But I was speculating about the timeframe and the technology by definition, because if it were in existence now, it wouldn't be three years away. And I really could be wrong, but it's my best guess. But sure, I don't think it'll be relevant to us if you can't support titles like GTA.”
Microsoft’s Streaming Strategy
Microsoft is also reportedly investing heavily in streaming, as evidenced by its recent launch of an ad-supported Xbox game streaming test. The company aims to leverage existing devices for streaming, offering Xbox One owners the ability to play newer games without purchasing new hardware. Zelnick noted he lacks insight into Sony’s plans, but anticipates both companies will integrate streaming into their strategies to address the ongoing hardware challenges – often referred to as the ‘RAMpocalypse’.