The rising cost of gaming hardware is a concern for consumers, and Take-Two CEO Strauss Zelnick shares this sentiment. However, he anticipates that the growing trend toward game streaming will mitigate these issues within the next three years, potentially expanding the accessible gaming market tenfold. "I think we'll be in commercial streaming mode in three years, and by commercial I mean low latency," Zelnick stated during Take-Two's quarterly earnings call. He believes that as streaming technology matures, devices not traditionally used for gaming will become viable platforms.
Zelnick pointed to the increasing adoption of open systems, such as PC gaming's growth over the past two decades, as evidence of a shifting landscape. He suggests that with the advent of reliable, low-latency streaming, the effective install base for games could grow substantially. While this expansion may not directly translate to a tenfold increase in revenue, as dedicated gamers already own hardware, it presents a significant opportunity for titles with broad appeal beyond core gaming demographics. Take-Two, owner of Rockstar Games, has experienced success with broadly desirable titles like Grand Theft Auto V, which has been available on streaming services in the past.
While game streaming has been available for years, latency and a preference for traditional control setups have hindered its widespread adoption in the AAA space. However, with rising hardware costs and a growing interest in massive social experiences like Fortnite, industry analysts and experts have increasingly viewed streaming as a potential solution. Zelnick's prediction aligns with this outlook, suggesting a potential shift in how players access and engage with video games.
The implications for future game releases, such as Grand Theft Auto 6, remain to be seen. Grand Theft Auto 6 is notably not launching on PC, a platform Zelnick acknowledged as important. His previous predictions about the industry's trajectory have been a mix of accurate and inaccurate, making his three-year streaming forecast a point of interest for the industry. The successful implementation of low-latency streaming could fundamentally alter the hardware-dependent nature of gaming, opening new avenues for both developers and players.