Take-Two remains firm in its stance that game subscription services like the Xbox Game Pass are not attractive for major releases. The producer’s CEO, Strauss Zelnick, recently spoke about the matter with his investors, even mentioning that it is not clear yet whether the format is suitable for the majority of consumers.
“We believe such a model might make sense for older catalog titles, but it doesn’t really make sense for frontline titles. For any business model to make sense in the entertainment arena, it has to work for entertainment creators, as well as for entertainment consumers. I believe the catalog can make sense to producers, it can make sense to consumers who are avid, who really want access to a lot of products. But if you get to the main products, then it gets a lot harder make economic sense,” Zelnick declared.
The executive makes it clear in his first speech that the main disadvantage of bringing new releases to services such as the Xbox Game Pass would be the production company to make less money. But at another point in his statement, he tries to raise the possibility that access to a library with hundreds of games for the price of a monthly fee might not be good for consumers either.
“In the case of interactive entertainment, people consume something like 45 hours a month, and that could be one, two, three, four titles. But it’s definitely not 100 titles (like streaming video). From the consumer’s point of view, it’s not clear that a subscription model really makes sense for most consumers.”