Take-Two CEO Strauss Zelnick has announced more micro transactions. But the company does not want to exaggerate: although there is still potential in the monetarization with small purchases, players should not “the money be pulled out of the bag”.
This publisher also follows a strategy that is gaining momentum throughout the industry and is not always within the bounds of good taste. What is called “player recurring investment” in Ubisoft shareholders is called “recurrent consumer spending” at Take Two. The same concept is always the same concept: revenue no longer depends on sold games, but depends on small purchases, by making games more of service. These acquisitions are made on a regular basis, and secondly, they are price stable and at the same time high profit margins – and are now a major factor in the balance sheets of all publishers.
Free is not a business model
The importance of microtransactions has been emphasized by Zelnick at the Cowen and Company 45th Annual Technology Conference: “You can not give things away forever,” said the CEO, because that is “no business model”. Therefore, there will be no permanent replenishment of content at Take Two. After all, the publisher will not try to “monetize everything we do to the n-th degree”. This has a simple reason: “My concern is that customers know about it,” said Zelnick to maximum monetization. Even if “they do not even know that they would know players would at least feel they were overpowered.
A bad feeling comes when you have paid too much for something, even if it is “really good” and “even if you can afford it”. Even worse, “to pay too much for something bad”. The goal of Take Zwo is therefore, Zelnick explained, to avoid that customers feel bad after a purchase. The publisher will not try to increase the profit at any price.
“Undermonetization” at Take Two
From the point of view of the industry, Take Two would “submonitize” its users in the industry comparison, Zelnick analyzed. He believed that the company still had potential: “I think we can do more in this direction.” This is possible without affecting the creativity of the company and the “ethical approach” that “delights the customer”.
It is therefore expected that Take Two will offer more content as an additional purchase, but primarily those that do not affect the player’s experience or only slightly. In GTA Online, you can now buy about all the content with the currency of the game. This will also be for Euros. The tightrope walk between a fair additional offer, which is actually purely optional, is successful in the end but rarely because publishers in their games ultimately want to maximize “recurrent consumer spending” and therefore have to create incentives for the use of these additional offers. In this case, it is gradually graduated to the limit of pain, which is still accepted, and then, as last in For Honor, something has been thrown back – fair is simply what gamers do not drive the barricades in large numbers.