Take-Two CEO says he expects the games industry to be in 'commercial streaming mode within 3 years,' which is great news if you hate owning things

During Take-Two's latest earnings call, CEO Strauss Zelnick expressed his belief that the games industry will be in a "commercial streaming mode within 3 years." This perspective is particularly relevant given the current crisis in computing hardware, which has made purchasing gaming hardware more expensive and less accessible to consumers.

Zelnick noted that the soaring costs of consoles and components could drive customers away from traditional gaming hardware. In response, Take-Two anticipates that streaming games will become increasingly popular in the near future. Zelnick stated that the technology for low-latency, high-quality streaming is "right around the corner."

As a result, he expects the company's customer base to expand as cloud gaming becomes the norm, regardless of the challenges faced by the traditional gaming hardware market. According to Zelnick's estimates, the growth of cloud gaming could potentially increase Take-Two's user base by a factor of ten. While this could lead to increased revenue, the company recognizes that its most dedicated customers are those who already own traditional gaming hardware.

However, the potential for a more widespread adoption of game streaming is compelling, as it could create opportunities for titles that appeal to a broader audience, even those who are not as invested in hardware. Nevertheless, the shift to streaming will not be without its challenges. There are significant concerns about game and media ownership in a streaming-dominated future.

Consumers are wary of being left without access to games if streaming services shut down. This unease is reflected in various consumer efforts to address these issues, such as the Stop Killing Games movement and the controversy surrounding Sony's decision to end disc production. Even respected figures like Hideo Kojima have expressed concerns about the ability to freely access beloved movies, books, and music if streaming becomes the primary distribution method.

Initially, Zelnick had reservations about subscriptions being the only way for interactive entertainment distribution. However, as the cost of gaming hardware continues to rise, there may be no other choice. The outlook for game streaming in 2026 remains uncertain, but the growing pains of the current hardware crisis may compel consumers to embrace this new form of gaming distribution.