Take-Two Interactive recently released its Q1 FY25 earnings report, revealing that the company’s bookings remained flat compared to the same period last year. During the subsequent earnings call, CEO Strauss Zelnick addressed various questions, including the company’s stance on user-generated content (UGC).
Zelnick made it clear that Take-Two does not see UGC as a significant focus or a major factor in the company’s future strategy, despite the growing trend of UGC in the gaming industry.
Zelnick expressed appreciation for the creativity and engagement shown by users in modding communities, particularly within the Grand Theft Auto (GTA) franchise. He acknowledged the excitement around the modding community for GTA but emphasized that Take-Two’s primary mission is to deliver high-quality entertainment directly to consumers.
Zelnick conveyed skepticism about the gaming industry’s potential to shift towards a UGC-driven model, indicating that the company will continue to prioritize its own content creation over-relying on user contributions.
The rise of UGC in the gaming industry, exemplified by platforms like Roblox, was also discussed. Zelnick recognized that some games function more as platforms for UGC rather than traditional entertainment titles.
While he stated that Take-Two values high-quality entertainment, he also mentioned that the company is generally supportive of players who wish to enhance their gaming experiences through UGC, provided it aligns with the company’s standards.
Zelnick also touched on the importance of protecting intellectual property (IP), referencing Take-Two’s actions in 2022 when it required MyMetaverse to remove NFTs from GTA servers.
This move was driven by concerns over unauthorized revenue generation and the use of cryptocurrencies within the game. Zelnick reiterated that while Take-Two is open to positive additions from the community, the company remains vigilant about safeguarding its IP.
Looking ahead, Take-Two has major releases planned, including the highly anticipated Grand Theft Auto VI and Civilization VII, both set to launch next year. These releases reflect Take-Two’s continued focus on producing premium entertainment content, underscoring the company’s strategic direction away from a UGC-centered approach.
