Take-Two Interactive has recently released its Q3 financial results, which exceeded both previous guidance and Wall Street expectations. The company's CEO, Strauss Zelnick, attributes this success to the ongoing revenue engine that is its Zynga mobile division, as well as better-than-expected consumer revenue from NBA 2K (up 30%) and GTA Online (up 27%).
In a recent interview with GamesIndustry.biz, Zelnick emphasized the importance of AI in driving costs and time efficiencies within the company. "We have hundreds of pilots and implementations across our company, including within our studios," he said. "And we're already seeing instances where generative AI tools are driving costs and time efficiencies."
Despite this enthusiasm for AI, Zelnick was quick to clarify that the company's approach is not about relying solely on machine learning to create game assets. Instead, AI is used as a tool to augment human creativity. As he put it, "Tools don't replace creativity, they're different things."
Zelnick also discussed the upcoming release of GTA 6, stating that the game will be handcrafted by Rockstar Games and not procedurally generated using AI. This approach allows for the creation of immersive and detailed game worlds that are unique to Take-Two's brand.
The company's mobile business, Zynga, has been a major driver of growth in recent quarters. "Zynga is crushing it," said Zelnick. "We're way over plan at our mobile business. It's up 19% year over year."
This success can be attributed to the popularity of games such as Toon Blast and Match Factory, which have seen significant revenue growth. Additionally, Take-Two has been able to operate its own consumer storefronts outside of the App Store and Google Play Store, allowing for greater control and flexibility in terms of pricing and payment options.
The company's focus on AI and mobile gaming is expected to continue driving growth in the future. As Zelnick put it, "We're highly optimistic about advertising in our mobile business and we do expect it'll be a permanent business."