CEO: Streaming makes expensive consoles matter less

The console generation has arrived, bringing with it the promise of next-level gaming. Yet, for many dedicated players, that promise comes with a hefty price tag. Gaming hardware, including consoles like the PS5 and Xbox Series X|S, now costs significantly more than it did just a few years ago. This increase has forced gamers to make tough financial decisions about their platforms.

Despite these rising costs, industry leaders are not letting hardware prices dictate the future of gaming. Take-Two Interactive, the publisher behind massive titles like GTA 6, remains confident that the current state of technology holds a potential silver lining rather than posing an insurmountable obstacle to sales.

When pressed on the cost issue during a recent financial briefing, CEO Strauss Zelnick offered a perspective that shifted the focus from immediate pricing to long-term technological evolution. He acknowledged that lower hardware costs would be beneficial for increasing access, but he stressed that the broader movement toward open systems is far more important.

Zelnick pointed out a dramatic shift in the gaming landscape. Where PC once accounted for a tiny fraction of sales two decades ago, it now commands up to 50% of the market. He believes this trend will only accelerate, driving the industry toward more flexible and accessible models.

The real opportunity, according to the CEO, lies in the future of distribution. The next major revolution won’t just be about better consoles; it will be about cloud streaming. Zelnick is optimistic, predicting that the technology underpinning live streaming is on the verge of a massive expansion of the installed user base.

He estimates that with continued technological advancement, low-latency commercial streaming could reach a point where it increases the effective installed base tenfold within three years. This shift creates huge potential for games that are broadly desirable, moving gaming beyond traditional core markets.

While concerns about hardware pricing persist—with price hikes already anticipated for future consoles—the trajectory of technology suggests that access will become democratized. The future of gaming may be less about the box you buy today and more about the experience streamed to you tomorrow.