Take-Two CEO: THQ Won’t be Around in Six Months
While it’s already common knowledge by now that THQ isn’t in good financial standing, Take-Two CEO Strauss Zelnick gives his unsolicited opinion on why he thinks THQ is losing money…and he even makes the bold prediction that they won’t even be in business in six months!
Speaking at the MIT Business in Gaming, Zelnick had this to say regarding THQ’s business strategy and how it differs from what they’re doing.
THQ’s strategy was licensed properties, first and foremost. License stuff from other people, whether it’s UFC or WWE or a motion picture property, and make a game around that. And our approach, since we took over the company, is 100 percent owned intellectual property.
Zelnick talked about licensed IPs and how it leaves publishers at the mercy of license holders. He states that even if the publisher does well with the IP itself, it will eventually have to renegotiate the license after a few years and the margins will decrease because it’s being charged more money for a brand it built up in the space.
The Take-Two boss does admit that THQ seems to partially change its strategy regarding owning their own IPs, but added that this is something hard to do overnight.
THQ has had some good games, but their quality levels aren’t even remotely … the quality hasn’t measured up. Strategy didn’t work and the execution was bad. To put it another way: the food was no good and the portions were small…THQ won’t be around in six months.
While this obviously won’t go well with THQ, Zelnick quickly gave a statement to Game Informer regarding his recent statements.
While discussing our strategy I spoke out of turn about someone else’s. It was inappropriate and I regret it.
Now, that nipped that “publisher” war in the bud before it even got started…do you think Zelnick has a point? Is this one of the main reasons why THQ is down in the dumps right now?