Take-Two Boss Warns Against Relying Solely on Sequels for Success

Take-Two Interactive CEO Strauss Zelnick has emphasized the importance of creating new franchises, or “new IP,” to ensure continued success in the gaming industry. During the company’s latest earnings briefing, Zelnick stated that relying solely on sequels is a risky strategy, as even the most popular franchises eventually see a decline in popularity.

The Need for New IP

Zelnick acknowledged that while sequels often perform well, they represent a lower-risk proposition compared to new IP. He pointed out that “everything degrades,” and even successful franchises like Grand Theft Auto and Red Dead, which Take-Two considers “permanent,” can experience a decline in performance over time. He used the analogy of “burning the furniture to heat the house,” highlighting the potential for long-term damage if the company solely focuses on established franchises.

Examples of New IP

Take-Two is actively developing new IP, such as the multiplayer game Project Ethos and the upcoming title Judas from BioShock designer Ken Levine. While some new IP ventures, like Gearbox’s MOBA Battleborn and Evolve, have failed to resonate with audiences, Zelnick emphasizes the importance of taking risks to create lasting value in the long run.

Upcoming Releases

While Take-Two is investing in new IP, the company also has several highly anticipated sequels in development. Grand Theft Auto VI is set to launch in Fall 2025, and Gearbox’s Borderlands 4 is expected to arrive sometime in 2025. These sequels, however, will not be released close together, suggesting a strategic approach to balancing existing franchises with new IP.

In conclusion, Take-Two’s focus on creating new IP demonstrates a forward-thinking approach to navigating the ever-evolving gaming landscape. While sequels remain important, the company recognizes the necessity of venturing into uncharted territory to secure long-term success.