Take-Two Interactive CEO skeptical of gaming subscription services

Strauss Zelnick is sceptical of potential subscription models for games.

Zelnick — the top executive at Take-Two Interactive, the parent partner of Rockstar Games and 2K Games — has said subscription services for games may not be a good idea, because people don't consume games in the same way they do "linear entertainment" such as movies.

He said: "You have to find that intersection in business models that serve the customer successfully and also serve everyone else who participates in the value chain. And that may prove to be a little challenging for subscriptions in this space because people do consume video games differently than they consume linear entertainment."

Strauss pointed out that households on average spend far more time watching television than they do playing video games, and episodes are quicker to consume before they're onto the next show, which is what makes models like Netflix so popular.

Users spend more time with one particular video game, and so a monthly subscription model is harder to sell.

In an earnings call with GameSpot, he added: "In the case of video games, it is possible that the average user in those 45 hours might be playing 1, 2, maybe 3 titles; certainly not 70 titles. In that event, if you play 1, 2, or 3 titles and you play them for months in a row — which often happens in [the video game world] — then a subscription model may not be such a great deal for the customer."

However, Strauss says Take-Two — which also produces the Grand Theft Auto franchise — is "open-minded" to the idea, and could be on board with subscription services if the consumers are there.