Take-Two says next-gen development will be complicated and costly

CEO Strauss Zelnick says making the "standard bearers of the industry" will not come easily.


Grand Theft Auto V

Grand Theft Auto parent publisher Take-Two Interactive believes creating compelling titles for next-generation platforms will be complicated and costly.

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Despite the challenges, CEO Strauss Zelnick believes his company is up to the task, due in part to a drive to be fiscally responsible and disciplined, as well as the cash it has on hand.

"There's nothing straightforward about making what we hope will be the standard bearers of the industry. And there's no question that developing for what will be next-gen will be complicated and for the type of titles we do, will be costly," Zelnick said today in a post-earnings financial call.

"That said, we have a very strong balance sheet and we align our business with our costs; and one of our three strategic objectives is to be the most efficient company in the business," he added.

Zelnick's comments today don't match up with what the executive said in November. At the time, he did not foresee a significant increase in development costs for next-generation games. In fact, he said the opposite would be the more likely scenario--that games would become easier to make.

"We don't have a ramp-up of operating expenses for next-generation," Zelnick said at the time. "Do we believe the titles to be a whole lot more expensive to make for next-gen? And the answer is we do not. In many instances we believe that it may be somewhat easier to make titles for next-gen, depending on how the technology comes together."

Today, Zelnick said that in time, development efficiencies may be reached, but right now it's "too early to say" if that will be the case.

Take-Two's next major project is Grand Theft Auto V, which launches September 17 for the Xbox 360 and PlayStation. Wii U and PC versions are "up for consideration." For more, check out an Ask GameSpot video feature on the game below.

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