Take-Two CEO Predicts True Game Streaming Within 3 Years, Says It Must Handle GTA 6 Like Consoles to Matter

Take-Two's boss believes the video game industry will enter 'commercial streaming mode' within three years, but insists that for streaming to be significant, it must run GTA 6 as smoothly as consoles do.

During an investor Q&A following Take-Two's latest financial report, CEO Strauss Zelnick addressed questions about the industry's struggles with rising chip costs, which have led Sony and Microsoft to hike console prices and potentially delay the PS6 and next-gen Xbox (codenamed Project Helix). Zelnick admitted that higher hardware costs are 'not a good thing' because cheaper hardware means more devices in consumers' hands, which software companies prefer. However, he suggested that the rise of game streaming could help solve this problem.

Game streaming isn't new, with most major players offering some form of it, but it's often criticized for providing a worse experience than local play due to latency, responsiveness, and fidelity issues. Zelnick, however, believes high-quality streaming is 'around the corner' and even set a timeline for low-latency gaming.

'With the advent of streaming, which we really do believe is around the corner in terms of having something with slow latency and really works well for consumers, machines that weren't game machines before will become game machines,' Zelnick predicted. 'So without regard to what happens in the console business, which is a consequence to us of course, we see the overall installed base as a practical matter growing materially. And if you believe in streaming—and to be clear, we really do—and I'm happy to put a timeline on it: I think we'll be in commercial streaming mode within three years. And by commercial, I mean low latency. That can 10x the effective install base.'

He added that this doesn't mean revenue will multiply tenfold, as avid gamers already own consoles, but it creates opportunities for titles that appeal beyond core markets.

In a follow-up with IGN, Zelnick was asked if streaming could run GTA 6 with console-level fidelity and responsiveness within that timeframe. 'I think for streaming to matter, it would have to do that,' he replied. 'But I was speculating about the timeframe and the technology by definition, because if it were in existence now, it wouldn't be three years away. And I really could be wrong, but it's my best guess. But sure, I don't think it'll be relevant to us if you can't support titles like GTA.'

Both Sony and Microsoft are expected to rely heavily on streaming amid the 'RAMpocalypse.' Zelnick said he has no insight into console makers' plans but wouldn't be surprised if streaming is part of their strategy.

Last month, Microsoft launched a test for ad-supported Xbox game streaming, promising ads wouldn't interrupt gameplay. Microsoft said this could help Xbox One owners play newer games without buying new hardware, especially in regions where consoles are scarce or expensive.

The ad-supported test came as console prices rise, with some hardware nearing $1,000. In June, Microsoft announced significant price hikes, citing the ongoing components crisis. 'Last October, we increased Xbox console price by 20-70 in the U.S.,' Microsoft said. 'We hoped another price increase would not be necessary... Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027.'

New Xbox CEO Asha Sharma has said escalating costs would require 'radically different business models' in the next generation, adding that it's 'hard to imagine' mass audiences affording 'thousands of dollars' for a new console.

The current PS5 and Xbox Series X|S have seen price increases rather than savings. Sony raised PS5 prices in March, citing global economic pressures. Nintendo also acknowledged it would raise Switch 2 prices just over a year after launch. Valve struggled to release Steam Machine at its desired price, settling on $1,049.

We've got more from Zelnick today, including his comments on GTA 6 pricing, his defense of GTA 6's digital-only release, and Netflix's timed exclusivity on the next GTA 6 trailer.