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Take-Two: Next-gen software price hikes "reflect the quality of the experience"

hemo memo

Member
Speaking ahead of the company's Q1 earnings release today, I asked Take-Two CEO Strauss Zelnick about the price increase, and whether he felt Ubisoft not raising its prices -- at least not right away -- would present a challenge for Take-Two in getting consumers on board with the extra cost.

"There hasn't been a price increase for frontline titles for a really long time, despite the fact that it costs a great deal more to make those titles," Zelnick replied. "And we think with the value we offer consumers...and the kind of experience you can really only have on these next-generation consoles, that the price is justified. But it's easy to say that when you're delivering extraordinary quality, and that's what our company prides itself on doing."

Source

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Abear21

Banned
Okay, so as a consumer I can expect more from devs next-gen then? With all that horsepower I can expect less bugs, better graphics and no more low res. textures, higher frame rates, and to be charged less for dlc because I’m paying more up front? Yeah...didn’t think so.
 

Omali

Member
Okay, so as a consumer I can expect more from devs next-gen then? With all that horsepower I can expect less bugs, better graphics and no more low res. textures, higher frame rates, and to be charged less for dlc because I’m paying more up front? Yeah...didn’t think so.

You can expect more gambling mechanics. That extra $10 is going toward better rigging for the pachinko machine on NBA 2k21
 

Klayzer

Member
Okay, so as a consumer I can expect more from devs next-gen then? With all that horsepower I can expect less bugs, better graphics and no more low res. textures, higher frame rates, and to be charged less for dlc because I’m paying more up front? Yeah...didn’t think so.
You will get less of the game now, and get charged for the rest with micros, ult packs, season passes, gold editions, and still some lemmings will tell you companies need more.
 

BluRayHiDef

Banned
Why is it that marketing departments of corporations think that consumers are stupid? In this day and age, they should know that consumers are aware that marketing departments describe the products, services, and actions of the corporations to which they belong with deceitful or euphemistic language. Why not just be honest? I'm pretty sure that consumers would appreciate honesty.
 

StreetsofBeige

Gold Member
Profit drains
- Cost of game development has gone up

Profit boosters
- Lower and lower costs towards making discs as more people buy digital every year
- Lower and lower lost sales to used games market as more people buy digital every year
- People have more opportunity to buy a game for longer times than the disc era as the game can linger around in digital storefronts forever at deal prices
- DLC
- Microtransactions
- Deluxe and Collector's Editions at $100+
- Less need for expensive traditional advertising like TV ads like the old days, since internet marketing and YT videos are faster and cheaper

I guess cost of development has outweighed the boosts.
 
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zeorhymer

Member
The funny thing is that there are back logs and back logs of games that are available which are incrementally improved year over year. Only the most exciting and noteworthy can command a premium price.
 

Ovek

7Member7
As a business man he's not wrong. Games haven't seen a price rise for several console generations yet AAA games become more complex in every department significantly increasing the cost associated with the development.

A price increase is long overdue if you look at it that way and share holders who don't give two shits about games will look at it that way.

Meanwhile


It's a hugely popular cash cow, why wouldn't they re-re-release it.
 

StreetsofBeige

Gold Member
Hi,

This is the CEO of Take Two.

We've sold over 130 million copies of GTA V, where our initial release was September 2013 at the tail end of the 360/PS3 era. During the current generation of consoles, our plan was to milk it with more sales and for next gen, we plan on re-releasing the game again in 2021 at an even higher price than in 2013.

We need to do this because if we don't price it at $70, our accountants say we might not be profitable on this 2013 game.

Please believe us. The price hike is needed for corporate survival.
 
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I think it depends on the game really. For GTA, RDR, Borderlands, Bioshock, yeah, $70 or perhaps even more makes sense. But I don't think they will get away with charging that much for every game without significantly lowering sales.

Edit: Actually they could probably get away with charging $70 even for Civilization and XCOM. Those games have hardcore fanbases who play the game for years in some cases.
 
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Apart from ray tracing, do you think that the next-gen versions of GTAV will look better than the current version of the game on PC?
I mean, add 1 new texture somewhere and crank it to max settings on next-gen and it already looks "better".
I'd hope they put some more love into it, but let's be honest here: They're just putting a pretty dress on that old whore and picking away some of the crusty scabs, so they can run her around the block for a few more years.

It's not like costumers have an alternative.
 

LarknThe4th

Member
So I can expect actual capable adaptive A.I and a comprehensive physics system in all their games then.....

Cause that's all I will pay more for, honestly at this stage they can shove their 4K Open World bland-a-thons up their hole, so sick of every game being the same these days
 

Darklor01

Might need to stop sniffing glue
Meanwhile


We here at Take2 have surfed through the best and most powerful PC mods out there to bring you the most powerful (and free for us) version of this game. Never mind that it has paid for itself so many times over that it’s revenues are more than the gross national product of many small countries... this version is so good you won’t ask for GTAVI. Please don’t ask for GTAVI.
 
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Klayzer

Member
Profit drains
- Cost of game development has gone up

Profit boosters
- Lower and lower costs towards making discs as more people buy digital every year
- Lower and lower lost sales to used games market as more people buy digital every year
- People have more opportunity to buy a game for longer times than the disc era as the game can linger around in digital storefronts forever at deal prices
- DLC
- Microtransactions
- Deluxe and Collector's Editions at $100+
- Less need for expensive traditional advertising like TV ads like the old days, since internet marketing and YT videos are faster and cheaper

I guess cost of development has outweighed the boosts.
Those seven profit boosters you mention should far outway the negatives. Notice companies rarely talk about that in relation to how much they always seems ready to discuss development costs. The only time we even know about the positives is from the public quarterly financials.
 
Got it. They want more money.

The best thing I can do with 2K games is staying away from them. I like GTA and Red Dead as well as the guy next to me, but this is Bethesda level of marketing.

Can't wait to play GTA V Ultra Turbo Remix HD 3D VR Deluxe Edition featuring Dante from the Devil May Cry series.
 
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Klayzer

Member
Got it. They want more money.

The best thing I can do with 2K games is staying away from them. I like GTA and Red Dead as well as the guy next to me, but this is Bethesda level of marketing.

Can't wait to play GTA V Ultra Turbo Remix HD 3D VR Deluxe Edition featuring Dante from the Devil May Cry series.
I didn't buy GTA5 or RDR2 or any 2K games in the last eight years. Feels good. Was big fan of 2K when Sega owned Visual Concepts. I've weened myself off of any EA, Take Two, and Ubi releases.
 
Apart from ray tracing, do you think that the next-gen versions of GTAV will look better than the current version of the game on PC?
There are already a raft of mods for PC that produce photo realistic graphics on GTAV. I seriously doubt the PS5 version will come close to any of these mods.
PC will still be the best place to get your next gen fix.
 

BluRayHiDef

Banned
There are already a raft of mods for PC that produce photo realistic graphics on GTAV. I seriously doubt the PS5 version will come close to any of these mods.
PC will still be the best place to get your next gen fix.

Well, I'm personally done with GTAV; I've beaten on both the PS4 and PC, and I have no interest in GTA Online.
 
Thier games sell like 50 million copies each within 3 years of release. They don't have a problem covering development costs as if they spent 200 million they are makinh 2 billion back. The problem is this fucking stock market. The company needs to show that they are making more in the following year or they are fucked up by investors. Actually, read those stupid analysits who tells you not to buy that good company stock because their revenue this year only increased by 100 million instead of 102 millions. It fucking crazy.

Look at how oil price flacutate daily because an analyst told investors that there is an extra solar panel in a house rooftop in Houston.

That's really the problem, otherwise, T2 and EA executives do really need you ( customer) to be satisfied but they are afraid that their heads will be cut when stock price goes little down. They have to find a balance which is difficult. You need really competitive people to find that balance and make a company successful while maintainig customers satisfaction. Those companies are few.
 

tommycronin

Member
Games have already raised their prices over the last few years. Digitally even they've changed look at Ubisofts games on the ps or xbox store 70 euro for normal edition 90-100 euro for the deluxe and 110-120 for the super deluxe edition. Absolute fucking joke it is.
 

Klayzer

Member
Thier games sell like 50 million copies each within 3 years of release. They don't have a problem covering development costs as if they spent 200 million they are makinh 2 billion back. The problem is this fucking stock market. The company needs to show that they are making more in the following year or they are fucked up by investors. Actually, read those stupid analysits who tells you not to buy that good company stock because their revenue this year only increased by 100 million instead of 102 millions. It fucking crazy.

Look at how oil price flacutate daily because an analyst told investors that there is an extra solar panel in a house rooftop in Houston.

That's really the problem, otherwise, T2 and EA executives do really need you ( customer) to be satisfied but they are afraid that their heads will be cut when stock price goes little down. They have to find a balance which is difficult. You need really competitive people to find that balance and make a company successful while maintainig customers satisfaction. Those companies are few.
Manipulation and money, the only things these company execs are faithful to. What I've observed, record profits are never enough for these people, they will milk and IP dry and totally discord it when it fails to meet certain projections.

It won't be long before every multiplayer game will be a separate F2P game filled with pay as you play mechanics. I can almost gurantee Nintendo and Sony will follow as well when Halo blows up going F2P.
 
Manipulation and money, the only things these company execs are faithful to. What I've observed, record profits are never enough for these people, they will milk and IP dry and totally discord it when it fails to meet certain projections.

It won't be long before every multiplayer game will be a separate F2P game filled with pay as you play mechanics. I can almost gurantee Nintendo and Sony will follow as well when Halo blows up going F2P.
As I told you, those executives are not necessarily bad but they may lack competency to find the right balance of customer satisfaction and profit records.
Many companies are run by accounting guys. Those will never be able to create that balance. They will try to suck your wallet dry without providing value. Those companies do fail on the long run and suffer. Look at Capcom, they are barely as big as they were because they fucked up hatd by trying to sell you on disc DLC and all the stupid practice during the PS360 gen. The company was suffering that they couldn't develop SF5 without Sony help. They started to recover recently when thier product became good and all of us like thier recent games.
EA also suffered with their recent games and they seem to respond to fans, finger crossed 😂( it is not that they are doing bad, but they are not meeting expectations which in corporate world is a nightmare 😂)
 
Vote with your wallets. This is just a first mover trying to test the waters to fatten his margins and impress his investors. That whole company literally lives off one IP. They have it that good.
 
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StreetsofBeige

Gold Member
2K wants to charge folks
GTA V RE:RE-NextGen for $69.99.... You ain't slick 2K.
C'mon.

T2 guy even said it's to reflect the quality of the experience!!!!

So forget about the fact the game launched during the 360/PS3 era, already sold 130 million copies, and already got enhanced for PS4/Xbox One.

It takes tons of time and money to re-update the game with new textures and lighting for 2021. Hence $70 US (or $90 CDN)!

As CEO of T2, can I ask you something? Would you mind if we re-re-re-release GTA V in 2026 for PS6 and Series X2 for $80 US? Just asking.
 
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