- Strauss Zelnick believes the advent of cloud streaming is right around the corner.
- The Take-Two CEO stated that commercial streaming will become the norm in three years.
- Hence, the company isn’t worried about console price hikes, as streaming will increase its install base by 10x.
Ever since the memory crisis kicked off, hardware costs haven’t shown any signs of coming down. The price of consoles like the PS5 and Xbox Series X|S has been hiked multiple times in the last year, now costing hundreds of Dollars more than their initial MSRP.
With memory shortages only predicted to get worse in 2027 as the AI bubble continues to boom, consumers are stuck in a predicament. However, according to Take-Two CEO Strauss Zelnick, physical hardware could be getting replaced sooner rather than later.
Why It Matters: Hardware has been the backbone of the gaming industry for the last few decades. But with price hikes leaving out a sizeable portion of the consumer base, Take-Two might not be wrong to bet on cloud streaming.
In the earnings call for Take-Two’s Q1 financial results, Strauss Zelnick stated that the company believes in cloud streaming essentially replacing the install base of consoles amidst rising costs. When asked about the recent price hikes, the CEO stated that the advent of streaming will turn devices that usually don’t play video games into game machines.
With the advent of streaming, which we really believe is around the corner, machines that weren’t game machines before will become game machines. I think we’ll be in commercial streaming mode within three years. I mean that can 10x the effective Install Base.
Zelnick showcased a lot of belief in the upcoming technology, saying that he believes low-latency streaming that works for most consumers is just around the corner. The Take-Two boss even put a timeline on the rise of cloud streaming to emphasise his confidence, saying that the industry will adopt commercial streaming in just three years.
Therefore, even though a console market with a lower entry point would be better for the company, Strauss Zelnick isn’t too worried, as he thinks the advent of cloud streaming will increase the install base for games like GTA 6 by 10x.
With next-gen consoles from Sony and Microsoft set to cost more than $1,000 according to credible reports, the Take-Two CEO might have a point about the inevitable and meteoric rise of cloud streaming.
Do you think cloud streaming can take over from consoles in the next decade? Tell us in the comments below or head to the Tech4Gamers forum for discussion.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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