Take-Two Interactive CEO Strauss Zelnick said the video game industry will enter commercial streaming mode within the next three years, enabled by low latency connections that will allow many more devices to become gaming machines[C1] [1] [2] [3] [4] [5]. He said, "With the advent of streaming—which we really do believe is around the corner in terms of having something that's low latency and really works well for consumers—machines that weren't game machines before will become game machines" [1].
Zelnick predicted commercial streaming could multiply the effective install base by 10 times, although revenue would not scale proportionally[C2] [1] [2] [3] [4] [5]. He said, "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" [4].
Despite the promise of streaming, Zelnick expressed concern about rising hardware costs driven by chip shortages and growing generative AI computing demands, calling it "not a good thing." But he does not see the higher prices as a significant headwind for Take-Two[C3] [1] [3] [4] [5] [6]. He added, "Look, the rising cost of hardware is not a good thing...However, a lower price point for hardware would be a good thing because there'd be more hardware in people's hands" [6].
Zelnick also expressed skepticism regarding generative AI’s benefits to the industry and worries about high hardware prices limiting consumer access to new games[C4] [1] [4].
Take-Two is confident in its upcoming release of Grand Theft Auto 6, which is set to launch on November 19, 2026, with pre-orders described as exceptionally strong. Zelnick said he is confident the hardware install base will meet expectations despite price increases[C5] [1] [6]. He noted, "The only thing that will cause me to be concerned, not worried, but concerned, would be if we somehow felt that number [install base] was going to be smaller than we thought. But that isn't the case" [6].
Zelnick highlighted the importance of streaming platforms that can deliver GTA 6 at console quality, saying it will be critical for streaming’s success [2].
Take-Two projects fiscal year 2027 revenue of $8.2 billion [1]. The company discussed hardware cost issues and streaming during its earnings call on August 7, 2026 [1] [3] [4] [5] [6]. The industry now waits to see how streaming adoption evolves leading up to the GTA 6 launch scheduled for November 19, 2026 [1] [6].
