Take-Two Interactive\u2019s CEO has addressed the decision to ditch discs for GTA 6\u2019s launch, as he compares their existence to vinyl records.\u00a0<\/p>\n
While everyone\u2019s talking about the death of physical games, in relation to Sony\u2019s decision to stop producing discs after 2027, GTA 6 is the game that started the snowball.\u00a0<\/p>\n
When pre-orders for Rockstar\u2019s sequel opened in June this year, the developer confirmed the title would have download codes inside boxed copies \u2013 and not a physical disc.\u00a0<\/p>\n
Sony\u2019s subsequent announcement largely diverted the anger away from them, but Take-Two Interactive CEO Strauss Zelnick has now commented on the subject for the first time during its latest earnings call.\u00a0<\/p>\n
While Zelnick declined to comment on Sony\u2019s decision, he explained why he believes that, for GTA 6, a physical disc isn\u2019t necessary.\u00a0<\/p>\n
\u2018Our business is well over 90% digitally distributed,\u2019 Zelnick said (via IGN). \u2018It\u2019s already a digital business. So in certain instances, especially if it\u2019s a big game, discs just \u2013 and note I said discs \u2013 don\u2019t really make sense for the consumer.<\/p>\n
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\u2018Also, most instances you have to register online to play anyhow. So if you\u2019re already connected, who cares if you download digitally? It\u2019s all the same and it\u2019s much more convenient.\u2019<\/p>\n
He added: \u2018So that\u2019s where the world is going in our opinion and I think Sony understands that. We certainly understand that. It doesn\u2019t mean that we won\u2019t have physical editions now and then, I\u2019m sure we will in the same way that there\u2019s still vinyl in the recorded music business. But in other instances, it just won\u2019t make sense.\u2019<\/p>\n
While there\u2019s some truth to what Zelnick\u2019s saying, in relation to actual discs not containing the full game in the age of updates, the comparison to vinyl is peculiar because all major musicians release albums on vinyl these days, so it\u2019s always an option \u2013 rather than\u00a0a \u2018now and then\u2019 proposition.\u00a0<\/p>\n
His comments do appear to make a distinction between \u2018discs\u2019 and boxed games as a whole, but it\u2019s still a anti-consumerist stance for those who do share or trade-in games \u2013 which shouldn\u2019t be too surprising from a business executive.<\/p>\n
These comments aren\u2019t too surprising when you consider Take-Two\u2019s earnings from physical games in its latest financial report. In Q1 of the 2027 fiscal year, 98% of its net revenue from game sales came via digital purchases, compared to just 2% physical.<\/p>\n
Elsewhere in the earnings call, Zelnick discussed the rise of PC gaming over the past decade, which he interprets as a sign that people are shifting towards open systems \u2013 something he believes will spark a rise in streaming games as hardware prices grow.\u00a0<\/p>\n
\u2018With the advent of streaming \u2013 which we really do believe is around the corner in terms of having something that\u2019s low latency, and really works well for consumers \u2013 machines that weren\u2019t game machines before will become game machines,\u2019 Zelnick said (via Kotaku).\u00a0<\/p>\n
\u2018So, without regard to what happens in the console business, which is of consequence\u00a0to us, of course, we see the overall install base as a practical matter growing materially. And if you believe in streaming, to be clear, we really do, and I\u2019m happy to put a timeline on it.\u00a0<\/p>\n