In an interview with Sharon Waxman, Take-Two Interactive CEO Strauss Zelnick came out in favor of the upcoming Microsoft-Activision merger.
Around seven minutes into the interview, when asked whether he thought the merger would close, Zelnick replied, “I can’t really predict what the regulators will do, we’re certainly of the belief it’s a good thing for Microsoft and for the industry.” Waxman immediately asked for clarification and Zelnick responded by framing Microsoft and Take-Two’s relationship as not entirely competitive.
Emphasizing Take-Two and Microsoft’s different businesses, Zelnick said, “It’s a highly fragmented business, there’s plenty of creativity to go around. Microsoft is an ally of ours and if this makes their business more powerful we think that’s good for us.” Waxman pushes back by stating Activision is a software company, which would theoretically cut in on Take-Two’s business.
Zelnick responds by affirming the ability of Take-Two’s products to stand alone: “If we create great hits, which is our business, the consumers will show up. No one can take that away from us.” From a business perspective at least, Zelnick has a point. Take-Two publishes GTA, NBA2K, BioShock, and Civilization, among others. These are massive properties with different, although overlapping, audiences with Activision Blizzard and Microsoft. Nevertheless, try telling struggling indie developers that “every title stands alone.”
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