Take-Two's CEO predicts streaming will 10x gaming's install base within three years

Chief executive Strauss Zelnick of Take-Two, publisher of Grand Theft Auto, has expressed optimism about the future of cloud gaming. Speaking during the company's earnings call, he predicts that cloud gaming could become a mainstream option within three years, potentially expanding the installed base tenfold. This projection comes as the high cost of gaming hardware becomes a growing concern, with consoles and PC components becoming more expensive due to factors like tariffs, rising TSMC semiconductor costs, and memory shortages.

Zelnick attributes this potential boom in cloud gaming to advancements in networking technology and infrastructure. While he does not anticipate revenue growth to match the increase in installed base, he sees cloud gaming as a way to reach a broader audience. Today's major cloud gaming providers include Amazon's Luna, Nvidia's GeForce Now, Microsoft's Xbox Game Pass cloud functionality, and Sony's PlayStation cloud streaming.

Zelnick notes that 90% of Take-Two's business is already digital, though he leaves the door open for occasional physical releases, comparing it to the enduring demand for vinyl records. He also addressed Grand Theft Auto VI's upcoming digital-only launch, acknowledging the industry's shift away from physical disc games. The game is set to release on November 19 for PlayStation 5 and Xbox Series consoles, with a PC version expected later, and an extended early look will premiere on Netflix on August 27.