Take-Two Interactive Is Skeptical About Microsoft's Gaming Subscription Service

Take-Two Interactive (NASDAQ: TTWO) CEO Strauss Zelnick made comments suggesting that the company is far from gung-ho on subscription-based gaming services. Zelnick said that he was highly skeptical that subscription services, such as Microsoft's (NASDAQ: MSFT) Netflix-like Xbox Games Pass, would emerge as the primary distribution channel for games.

Continued growth for the subscription-based gaming model could be great for a platform holder like Microsoft, but it could present real threats to other leading games companies. Game development is expensive, and Zelnick specifically mentioned games being relatively cheap in terms of the hours of entertainment they offer as a reason why subscription services might not be a great fit for the industry.

Image source: Rockstar Games.

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Source Fool.com