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Take-Two is still determined to release its biggest IPs for mobile
Despite acquiring Zynga two years ago, Take-Two is still striving to release its biggest titles on mobile platforms. The $12.7 billion deal, the second-largest acquisition in video game history, combined Take-Two's popular franchises such as Grand Theft Auto, Borderlands, NBA 2K, and BioShock with Zynga's renowned titles like FarmVille and Words With Friends.
Merging Forces for Greater Potential
When announcing the deal, Take-Two's CEO, Strauss Zelnick, stated, "Most importantly, we believe that together we can enhance the development and publishing of new games based on Take-Two's intellectual property. We have the best game collections in the entertainment business, but we haven't fully leveraged mobile's global potential."
Addressing Progress and Challenges
At this week's TD Cowen conference, Zelnick was asked if Take-Two has made progress towards this goal or if it remains part of the company's long-term plan. He responded, "We're often asked why we haven't done this yet and what has stopped us. I mentioned that this acquisition provides an opportunity for revenue growth and margin expansion. However, even games based on the biggest franchises in video game history can fail in the mobile market."
The Call of Duty Mobile Comparison
People frequently ask why we don't replicate the success of Call of Duty Mobile. I must point out that Call of Duty is a massive franchise, and almost everything pales in comparison. According to Activision Blizzard, Call of Duty Mobile, released in November 2019, had over 650 million downloads by May 2022.
Embracing Mobile-Native Success
Zelnick added, "We've realized that the biggest successes in the mobile market are usually mobile-native; Match Factory is a great example. That said, I would love to introduce a successful mobile game based on Take-Two's classic IPs."
Strategic Shifts and Financial Goals
He continued, "I'm almost certain we can achieve this. However, I won't deny that we've shifted focus from the mobile market by pursuing other opportunities. The profit generated by the mobile business alone meets our expected revenue needs. We believe that the income from this market will satisfy the company's financial requirements."
Match Factory: A Success Story
Zynga released the puzzle game Match Factory in November last year, and Take-Two reported that the game has performed well. Match Factory is currently one of the top 20 revenue-generating games on the App Store and has reached millions of new users with its launch on Google Play. Mobile games accounted for nearly half of Take-Two's revenue in the 2023-2024 fiscal year.
Upcoming Releases and Future Plans
Zynga will release the fighting game Star Wars Hunters for Nintendo Switch and mobile in June. The role-playing puzzle game Game of Thrones: Legends will also be released for mobile in the current fiscal year.
Looking Forward: Mobile Game Ambitions
Strauss Zelnick reiterated at the TD Cowen conference that he still aims to create a mobile game based on Take-Two's most successful IPs. He said, "Do we want to do exactly what you suggested? Absolutely. Have we done it yet? No. Is it in our plans? Yes, but that doesn't guarantee success, as it may fail. Would it be insignificant if it fails? No. In fact, failures cost us. However, we must try, and that's exactly what we will do."
Share Your Thoughts
What do you think of Strauss Zelnick's comments? Can Take-Two create a successful game based on its biggest console IPs? Please share your valuable ideas in the comments section of our website.