Take-Two: Physical Distribution To Stay Strong In The Next Five Years

By Colin Tan on December 2, 2010, 4:48AM EDT

It's hard to argue that the gaming industry is slowly shifting towards digital distribution of games with services like Valve's Steam, the EA Store, Ubishop, Apple's App Store, etc. Even so, it's not a shift that's going to take place over night and traditional physical distribution will probably stay strong even in the next five years, according to Take-Two's Strauss Zelnick.

He tells Reuters that Take-Two's digital and mobile sales currently make up less than 10 percent of the company's revenue, but estimates a growth to 25 to 30 percent "over time."

"I still think in five years the packaged goods business will dominate," said Zelnick, soon to be CEO of Take-Two. "It's kind of irrelevant to us -- basically the same gross margin, basically the same risk."

As for the next Grand Theft Auto, Zelnick remained coy on the topic, dropping no hints whatsoever. He also says that they will not be "annualizing" their titles to avoid threatening the quality as well as "burning out" consumers.

Source: Reuters

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