The rising cost of gaming hardware, particularly consoles like the PlayStation 5 and Xbox Series X|S, may become a less significant factor for publishers and players alike due to advancements in cloud streaming technology, according to Take-Two Interactive CEO Strauss Zelnick. Speaking during a recent financial briefing, Zelnick acknowledged that while lower hardware prices are generally preferable for wider adoption, the current trajectory of technology presents new opportunities.
Zelnick pointed to the increasing prevalence of open systems in gaming, citing PC as a prime example. Twenty years ago, PC accounted for a mere two percent of Take-Two's sales, a figure that has now grown to approximately 50%. He anticipates this trend will continue, further blurring the lines between traditional hardware platforms. "The world continues to move to open systems, and that will continue," Zelnick stated.
He expressed strong confidence in the potential of cloud streaming, projecting that commercial, low-latency streaming services could be a reality within three years. This technological shift, Zelnick believes, has the potential to significantly expand the accessible gaming audience, potentially multiplying the effective installed base by a factor of ten. While he clarified this does not equate to a tenfold increase in revenue, as core consumers already possess gaming devices, it offers substantial opportunities for broadly appealing titles, even in markets outside of traditional gaming hubs.
This outlook comes as console prices continue to rise, with reports suggesting further increases next year. Concurrently, the PC market faces its own hardware challenges, with major RAM chip manufacturers reportedly having sold out their entire production for 2027. These factors underscore the evolving landscape of gaming hardware and the increasing relevance of alternative distribution methods like cloud streaming.