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Zelnick: Take-Two Experimenting With Microtransactions
Posted by Leigh Alexander at 8:20 AM on June 11, 2008
Take-Two is keenly interested in moving further into networked gaming, microtransactions and downloadable content, executive chairman Strauss Zelnick said at the Piper Jaffray consumer conference in New York today, where he was touting Take-Two's market positioning to an audience of investors.
Zelnick said the publisher is currently testing in-game ads for its sports titles "pretty aggressively", and is also experimenting with ways to add microtransactions into the mix across its franchises. The idea, said Zelnick, is to "turn packaged goods partially into a subscription business, and drive some of the volatility out". Plain language? Digitally-distributed business models like pay-for-content and subscriptions are less risky than the $AU 63.44 retail box.
"If we can get a good model for episodic content for high quality titles, that should be a pretty profitable business because there are no hard goods associated with it", Zelnick said.
Microtransactions work, said Zelnick, when it's something of value to the consumer. "You can't pull content out of a console game and the sell it to people later; it's not a good experience", he said, perhaps subtly digging his competition's recent controversy.
A natural extension of a property might be a better idea, he said - like letting players "change the way characters look, [add] weapons, cars and the like".
Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
wild homes 5: treyarch attacks!
Posted 8:51 AM 11/6/08
The new Take-Two: earning their way out of EA's clutches, one $1.50 piece of horse armor at a time.
wild homes 5: treyarch attacks!
Lysergio
Posted 8:42 AM 11/6/08
Its GTA. For once I say, "Bring on the microtransactions!!"
Lysergio
Arttemis
Posted 8:34 AM 11/6/08
@Eville1: Full fledge expansions are different from minimalistic microtransactions.
Arttemis
kagai
Posted 8:32 AM 11/6/08
Can we stop calling these "micro"transactions already???
kagai
photoboy
Posted 8:30 AM 11/6/08
Welcome to Ammunation, that will be 1000 Microsoft points for the handgun. Remember, when the police bust you, you'll need to come back here and buy the gun again!
photoboy
excaliburps
Posted 8:27 AM 11/6/08
Is this where APB comes in? I'm ok with in-game ads as long they don't interfere with the game. It is a bit scary whenever companies use the term micro-transactions. Sure DLC is ok. As long there's a reason for them to charge people for it. Not to unlock something that's already on the disc itself.
Gamers are a bit cautious especially the way some companies handle DLC. Either nickel-diming as for maps or a complete ass raping with money shots on the side like asking us to "pay" for tutorials in games.
Though you can' really blame them as it is a good business model. One that's a lot less risky financially as opposed to retail. Sure hope they handle it well though.
excaliburps
Eville1
Posted 8:25 AM 11/6/08
@BassForever: If they did it right, spent enough time on it but not TO MUCH time, and added a huge amount of content then I wouldn't mind them charging for it. As long as the price matched the value.
Eville1
Eville1
Posted 8:24 AM 11/6/08
Like downloading additional missions, story line and cities for GTA?
*HINT HINT*
Eville1
BassForever
Posted 8:24 AM 11/6/08
Please keep Microtransactions out of my GTA please :)
BassForever
kennyd1
Posted 9:33 AM 11/6/08
I'm not at all sure about microtransactions being used like this, but if the Strausster is backing it, I'm there! Other acceptable nicknames include the Zellman, old 'Nick, Zelly and Zello, and my prefered headline for this piece is the Legend of Zelnick: Microtransactions of Money.
kennyd1
deathtastic
Posted 9:28 AM 11/6/08
OR they can have cars, custom characters, and all of the weapons in the game when i buy it and not release 10$ packages when im already done with the game.
deathtastic
Kounji
Posted 9:17 AM 11/6/08
@kagai: But that's the term they were given by the marketing and financing gods.
Kounji
wild homes 5: treyarch attacks!
Posted 9:13 AM 11/6/08
@Kenny: You can still buy it. LIVE points cards are available everywhere, and PSN cards are expected any day now-- hell, most stores already have tagged spots for them, just waiting.
wild homes 5: treyarch attacks!
Kenny
Posted 9:07 AM 11/6/08
Ugh, DLC and microtransactions are my worst fear. Why? I buy everything with cash.
Kenny
RonJeremy4Pres
Posted 9:35 AM 11/6/08
Microtransactions are NEVER good. Up yours Zelnick!
RonJeremy4Pres
PlayerX
Posted 11:00 AM 11/6/08
@kagai: hear hear!
PlayerX
Altima NEO
Posted 10:59 AM 11/6/08
Yes, nothing quite like paying an extra 20 dollars in microtransactions when youve already paid 60 dollars for a game that feels like its missing content.
Altima NEO
PlayerX
Posted 10:57 AM 11/6/08
I'll decide what's "micro," thanks.
Unless the basic game costs like 10$ and still comes with decent content, then they can kiss my Thompsons.
PlayerX
Neo_Deus
Posted 11:40 AM 11/6/08
So, are we going to buy individual shares of Take-Two stock in these microtransactions?
Neo_Deus
Azriel77
Posted 1:37 PM 11/6/08
I would rather they release an expansion disk than nickel and dime us to death.
In game ads
Microtransactions
Paid DLC
The triumvirate of game death.
It sounds like they are slowly turning into EA by themselves.
Azriel77
Murdats
Posted 11:40 PM 11/6/08
@Azriel77:
still better then them being bought out by EA
Murdats
Billkwando
Posted 12:52 AM 12/6/08
@Murdats: Become your enemy?
Billkwando
thezman
Posted 9:19 AM 11/6/08
Microtransactions are perfectly fine so long as they offer good content.
However, charging for gamerpics, themes or a handful of items for your character to wear during gameplay is stupid and should be avoided if a company wants DLC to be viewed as a good thing for their game.
Like Ninja Gaiden's DLC... that's some quality DLC that actually adds a lot to the already amazing game. Or like Rock Band with additional songs.
If they're going to charge people money for it, it had better be worthwhile.
And it had better not be part of the original development. Withholding modes or weapons just so you can offer them later is BS.
thezman
BoringJob
Posted 8:44 AM 11/6/08
It seems he has a level headed, reasonable take on DLC. I hope his company listens and gives us quality, fair priced DLC appropriate to the game(s).
I also like the thought of paying less than $60 to find out if I enjoy a title enough to warrant a full purchase.
BoringJob
SMB42
Posted 8:38 AM 11/6/08
Micro-transactions scare the poop out of me, with so little money for gaming nowadays I feel I wont be getting my moneys worth with upcoming titles.
Why would they put everything on a disk when they can sell it later at an extra cost?
But I hate in game ads also so this whole thing makes my belly rumble.
SMB42