GTA Company Says Relying Only on Sequels Could Lead to Disaster

Take-Two boss Strauss Zelnick talked about the importance of creating new franchises, or “new IP” as they are called in the industry. During Take-Two’s latest earnings briefingNothing stays popular forever, Zelnick said, so always doing new things rather than relying on sequels is an important business imperative.

“We are different from many other large companies. It is tempting for a large company to rest on its laurels,” he said.

Take-Two knows a thing or two about owning major franchises, as it owns the Grand Theft Auto and Red Dead franchises, which were both hugely successful. Take-Two has referred to GTA and Red Dead as “enduring” franchises, meaning the company Never stop making sequels.

But Zelnick also said Take-Two needs to create new franchises or risk things getting worse.

“We know that if we do release a sequel, it will be a lower-risk proposition than new intellectual property. But everything breaks down. Although most of our franchise sequels tend to outperform the previous release, and we’re really proud of that because that’s the standard for the industry.” “It’s not,” he said.

Zelnick added: “The truth is that there is something called decay and entropy, and it’s a property of physics, of human life, of everything that exists on earth. And ultimately, everything decays, including popular books. Trying new things and trying new things.” creating intellectual property, we…to say we’re resting on our laurels is really putting it mildly, we run the risk of burning furniture to heat the house and that doesn’t end well.”

The executive said Take-Two will continue to try new things even if they are not successful. Gearbox’s MOBA Battleborn is an example of a new Take-Two feature failing to find an audience; The same can be said for Evolve. Zelnick said Take-Two has been trying new things on mobile beyond the console/PC space, and has had some success with games like Match Factory and Toon Blast.

Trying new things means the “risk profile is higher” and Take-Two can sometimes make mistakes and take a financial hit. “But over time, this will be one of the most important ways to create lasting value,” he said of new intellectual property.

Looking ahead, Take-Two is reportedly working on a number of new intellectual properties, including the multiplayer game Project Ethos. Zelnick said in the interview that he “couldn’t be more proud” of the team at 31st Union and the game itself. 31st Union held a public test for the game earlier this year, and Zelnick said the team was “thrilled” with the feedback. “So we’re off to a great start and there’s more to come,” he said.

Another new IP from Take-Two is Judas, the next game from BioShock designer Ken Levine.

Take-Two’s biggest upcoming game Grand Theft Auto VIIt will be released in Fall 2025 for PS5 and Xbox Series X|S. The company also has Borderlands 4 coming from Gearbox in 2025. will not be published close togetherThis shows that Borderlands 4 will arrive in early 2025.