Playing the biggest video games is becoming an expensive luxury as console and computer hardware prices skyrocket. Strauss Zelnick, the head of Rockstar Games parent company Take Two, admitted during a financial call with investors that these price hikes are not a good thing. But he thinks a shift to low latency cloud streaming will solve the problem in 3 years.
The rising cost of memory chips, international tariffs, and silicon supply chains have made physical hardware harder to buy. Next generation systems could hit prices as high as 1000 dollars. Zelnick acknowledged the financial strain on consumers during the corporate investor call. However, he remains confident that the massive demand for franchises like Grand Theft Auto 6 and NBA 2K will protect his business from a major sales slump.
Cloud gaming has failed to catch on in the past, with Google Stadia serving as a prime example of latency struggles. Zelnick argues that massive improvements in edge networks and server infrastructure will make the difference this time. He expects this technology to become a commercial standard soon, stating that machines that weren't game machines before will become game machines
. This growth would target players who only own basic mobile devices in regions where expensive consoles are rare.
Many players still worry about losing access to their libraries if companies switch off streaming servers. Yet, the industry continues its push toward digital distribution. Zelnick dismissed concerns about the decline of physical media, noting that the Take Two business is well over 90% digitally distributed as it is. This massive shift raises concerns about physical disc options for Grand Theft Auto 6, which is rumored to have a digital only launch on consoles.
To back up his claims, the executive provided a specific window for the transition. He stated that the industry will be in commercial streaming mode within 3 years. This shift could theoretically expand the company user base by 10x by turning ordinary devices like television sets and tablets into gaming platforms. While avid players will likely stick to physical consoles, the cloud could open up massive opportunities for mainstream titles.
