Edited 1 times. Last edit by AbdulBasit Saliu on 15th May 2019 5:00pm 0Sign inorRegisterto rate and replyEvtim Trenkov Founder, Playright GamesA year ago The absolutely staggering revenue growth of our industry generated some unrealistic expectations amongst stock market investors hasn’t it? I think we are doing a poor job when pitching (and CEOs when reporting quarterly goals) to calculate and explain that there are only limited amount of people on this planet that can afford to buy a game, an average games takes no less than 80 hours to fully complete (not even including evergreen live ops titles) and the average person has like 10 hours a week to spend on themselves only.The game business is a great investment as it is now! But probably the growth will cap at one point (pan-industry growth). Which is not to say that stealing market share from a competitor won’t generate growth on a micro level. Its still a risk though! 0Sign inorRegisterto rate and replySign in to contributeEmail addressPasswordSign in Need an account? Register now. Take-Two: Investors are re-rating the games businessIt’s still an entertainment business, reminds CEO Strauss ZelnickChristopher DringHead of Games B2BWednesday 15th May 2019Share this article Recommend Tweet ShareAt the start of February, the share price of the games industry’s biggest names took a major hit.Although some had reported disappointing figures, the majority had actually performed very well. Nevertheless, shareholders became nervous, and the likes of EA, Activision Blizzard, Ubisoft, Take-Two and Nintendo all suffered as a result. Take-Two’s share drop was one of the more surprising. The company had secured the most successful games of the quarter, its big online titles were growing rapidly and it had raised its outlook as a result.The share prices have, overall, recovered somewhat since then, but the incident resulted in plenty of analysis from a business trying to understand what’s scaring off its supporters. Was the popularity of Fornite to blame? Could it be the slowdown in PS4 sales?Strauss Zelnick, Take-TwoTake-Two CEO Strauss Zelnick feels it was more about investors coming to terms with what the games industry is. “I attributed it to a re-rating of the entire sector months ago,” he told GamesIndustry.biz around the firm’s latest financial results. “I think that came from investors, or some companies, thinking about this business as though it’s a SaaS [Software-as-a-Service] business, with an inextricably upward sloping curve in terms of results. And of course we’re an entertainment business, which means that results will be driven by the quality of our release schedule.”Recurrent consumer spending has been a terrific thing for our business, because it’s a reflection of the fact that our consumers are more and more engaged. And the fact that our recurrent consumer spending for the fiscal year was up 20% year-over-year, and 39% of total spending… that’s great news.”At the same time, we are still an entertainment company with a release schedule. That means our results will be reflective of that. For example, we just put out our outlook for fiscal 2020. It’s better than our outlook for fiscal 2018, but obviously it’s not better than fiscal 2019 because we have Red Dead Redemption II launching in 19. But it is an exceedingly strong outlook.”There’s no Red Dead this year, but Take-Two does have a strong line-up for the year, headlined by Borderlands 3 on September 13th. The last game sold 20 million copies, and still has a million unique players every month. Zelnick says that’s “a nice base from which to build.””We are still an entertainment company with a release schedule. That means our results will be reflective of that” “We just had an event in Los Angeles that went incredibly well, with something like 12 million Twitch views. It was an extraordinary successful event, and it reflected the fact so many people are excited about Borderlands 3.”It’s not just Borderlands, either. The firm is gearing up to the launch its first titles from its new Private Division team: namely Obsidian’s The Outer Worlds and Panache Digital’s Ancestors: The Humankind Odyssey. Neither title has huge expectations against it currently, although Zelnick personally believes they could be “really big games.”Beyond that, Take-Two is typically tight-lipped about what its other teams, such as Hangar 13 and Firaxis, are working on. However, it is increasing its investment in its studio expansion, in part to increase its output of software moving forward. “It’s in service of a bigger release slate, but most importantly, a release slate of the quality we’re accustomed to around here,” Zelnick details. “Just doing more titles doesn’t solve the issue. We have to do more great titles. That’s the challenge and that’s why we’re investing in our future. That’s reflected in our operating expenses. Our capital expense was also up year-over-year against our expectations as we build out new studios and enhance our IT function.”Other considerations for Zelnick in 2019 includes games streaming, which is expected to grow with the arrival of Google Stadia. The Take-Two boss believes it’s a potentially positive thing longer-term: “We do need more details about the business model, but conceptually we expect to be supportive,” he says. That business model may or may not involve a subscription service, and this is something that Take-Two is a little more sceptical around. “It’s not so much scepticism, it’s more… we see this difference between streaming, which is a technology and a distribution model, and subscription, which is a business model,” he explains. Related JobsSenior Game Designer – UE4 – AAA United Kingdom Amiqus GamesProgrammer – REMOTE – work with industry veterans! North West Amiqus GamesJunior Video Editor – GLOBAL publisher United Kingdom Amiqus GamesDiscover more jobs in games “You can have a subscription model right now, you don’t need streaming for that. Indeed, there are subscription models already. We have to make sure that any model that we involve ourselves with reflects an intersection of what’s great for the consumer and what also works for our business. It needs to do both.”Outside of positive growth opportunities for Take-Two, there are some potential external challenges for the business, and indeed video games overall. Loot box mechanics is attracting the attention of concerned Government departments. Meanwhile, the World Health Organisation is expected to add Gaming Disorder to its list of mental disorders this month. “To be clear, we don’t agree with what the World Health Organisation is proposing to do,” Zelnick says. “We support the ESA and other interactive entertainment associations of the world, and they’ve publicly addressed the issue. And no, we don’t think it will have an influence [on our bottom line] at all.”Celebrating employer excellence in the video games industry8th July 2021Submit your company Sign up for The Daily Update and get the best of GamesIndustry.biz in your inbox. Enter your email addressMore storiesEA leans on Apex Legends and live services in fourth quarterQ4 and full year revenues close to flat and profits take a tumble, but publisher’s bookings still up double-digitsBy Brendan Sinclair 2 hours agoEA Play Live set for July 22Formerly E3-adjacent event moves to take place a month and half after the ESA’s showBy Jeffrey Rousseau 4 hours agoLatest comments (2)AbdulBasit Saliu Mechanic, Flowmotion Entertainment IncA year ago Long Live Take-Two Interactive (TTWO) and its principal businesses- Rockstar Games, 2K, Social Point, and Private Division and others- and Long Live Strauss Zelnick and his investment firm ZMC!
Daily Postcard: Frey Trail that leads to the Juniper Campground in Bandelier National Monument. Photo by Stella Carroll/NPS
An already-difficult road trip for the Orioles turned worse Friday afternoon with right-handed pitcher Kevin Gausman being placed on the disabled list with right shoulder tendinitis.The 24-year-old warmed up briefly during Thursday night’s loss to the New York Yankees before Tommy Hunter ultimately replaced Chris Tillman in a 4-3 loss. Gausman last pitched on Wednesday, his only appearance since April 29.According to multiple reports from New York, Gausman was given an anti-inflammatory on Thursday and could be ready to pitch in a rehab assignment before the 15-day period expires. He has reportedly been dealing with discomfort for about a week, but there was hope he would be able to pitch through it.The 2012 first-round pick is 1-0 with a 4.50 ERA in 12 innings this year.Many have questioned the Orioles’ use of Gausman in the bullpen after he went 7-7 with a 3.57 ERA in 20 starts last season, but the power right-hander pitched brilliantly in relief during the 2014 postseason, posting a 1.13 ERA in eight innings of work. Of course, it’s impossible to know what role — if any — a different work schedule as a reliever might have played in the injury.Lefty T.J. McFarland was summoned from Triple-A Norfolk to New York before the second game of a four-game set against the Yankees.As expected, the Orioles activated infielder Ryan Flaherty and backup infielder Rey Navarro was optioned back to Triple-A Norfolk.
Manchester United assistant manager Rui Faria will leave his post at the end of the season as he ends his 17-year association with club manager Jose Mourinho.His imminent departure was confirmed by Manchester United on Saturday.Rui Faria, 42, has been a trusted friend and ally of Mourinho through coaching spells at Uniao Leiria, Porto, Chelsea, Inter, Real Madrid and Manchester United thus earning him a reputation as Mourinho’s spiky sidekick.He is set to take a break from football before “pursuing any new challenge.”Rui Faria has worked with Mourinho since 2001 and was inevitably part of his team when he was named Manchester United manager in 2016.Related