Take-Two CEO sees industry consolidation as 'inevitable'
It doesn't matter where your office is located or how high it is -- if you're an executive in the video game industry, you can stare out your window and spot the looming shadow of the colossus, Activision Blizzard. Ben Feder, CEO of Take-Two, shared this view at a recent UBS investment conference (as reported by Reuters), where he stated that the soaring costs of game development make industry consolidation "inevitable."
"Video-game development is not getting any cheaper," said Feder. "It's a capital-intensive business, and I don't see that going away. That will drive some of the smaller competitors out." If the last few months have been any indication, rising costs and expectations are prompting publishers to snap up notable developers and even each other, much like [disturbing Hungry Hungry Cannibal Hippos reference removed]. A stable financial base and a desire to best the competition may provide an incentive for taking new IP risks, but the cynic among us would more quickly rub his hands together in anticipation for UbEAsoft's Madden's Assassin 2k7.
"Video-game development is not getting any cheaper," said Feder. "It's a capital-intensive business, and I don't see that going away. That will drive some of the smaller competitors out." If the last few months have been any indication, rising costs and expectations are prompting publishers to snap up notable developers and even each other, much like [disturbing Hungry Hungry Cannibal Hippos reference removed]. A stable financial base and a desire to best the competition may provide an incentive for taking new IP risks, but the cynic among us would more quickly rub his hands together in anticipation for UbEAsoft's Madden's Assassin 2k7.











Reader Comments (Page 1 of 1)
Vegnagun (Brushed With Fame) @ Dec 3rd 2007 8:35PM
Madden Assassin 2k7: Madden with 100% more assassination
Hashbrown_Hunter @ Dec 3rd 2007 9:06PM
Was it like that before?
LD22 @ Dec 3rd 2007 10:25PM
+1 now we can live the dream of killing that stupid fat fuck.
LilCo187 @ Dec 3rd 2007 8:37PM
"the soaring costs of game development make industry consolidation "inevitable."
....Then there's Nintendo.
tmacairjordan87 @ Dec 3rd 2007 8:50PM
and even nintendo had to sell out to make all the money they're making, otherwise they'd be sniffing sony and M$'s ass again.
Poisoned Al @ Dec 3rd 2007 8:40PM
It worked for Hollywood didn't it? Oh wait, bad example. What about Leyland Motor Corporation? ... shit... um...
Truepatriot @ Dec 3rd 2007 8:58PM
+1 for you sir.people always say consolidate or die nd yet anytime it gets close to it happening it never ever works out.
is the take two ceo gonna tell us the sky is falling next?
syco @ Dec 3rd 2007 8:43PM
This is not taking into account simple, downloadable games. How much money has Geometry Wars earned? How much money did it cost to develop?
And WiiWare isn't even up and running yet!
gonk @ Dec 3rd 2007 8:59PM
also indie devs, like the one that made katamari
also there's lots of turnover and fresh blood being added to the gaming community, people love to branch off and make their own games for a bit before they sell the company to a conglomerate and run to their next side project
tmacairjordan87 @ Dec 3rd 2007 8:53PM
i wouldn't have a problem with two big companies owning every 3rd party developer as long as they stayed the hell out of the actual development and just worried about money.
gonk @ Dec 3rd 2007 8:57PM
but they always want to make games cheaper and put them out sooner
tmacairjordan87 @ Dec 3rd 2007 8:59PM
this is true, i meant in a perfect world where they would just pretend like they dont own the developers and let them do what they normally would, but it would never happen
Cuja @ Dec 4th 2007 12:43AM
Eliminate the competition so you can charge more for less. This sounds more in line with EA. I'm surprise this is coming from Take-Two.
Shogan @ Dec 4th 2007 2:42AM
I like how they lump 'games' into one big category. I think what he means to say is, "The soaring costs of inching gaming closer to Hollywood crap".
ThornedVenom @ Dec 4th 2007 2:52AM
Well, even though industry consolidation is the greater way to lower production costs whilst funding higher budget projects, I'm just afraid that the videogaming industry would lose its artistic appeal in favour for more mainstream/generic formulas.
Think about Hollywood movies. Stereotypically, action flicks is about this badass dude with loads of guns and explosions. Chick flicks are about awkward romances. Comedies are about guys trying to go through normal life, but with one really fucked up thing which happened to them.
From a marketing standpoint, it's good. But I fear for innovation and artistic expression.
Unless you're a bitch who doesn't believe that videogames aren't art.
Burnt Meatloaf @ Dec 4th 2007 5:53AM
Easy way to solve soaring development costs: buy competitors and become even bigger, for the menial cost of only a few billion dollars.
Oh, look. More crashes, freezes, and framerate issues, and the voice acting still sucks!
GRANTED @ Dec 4th 2007 9:39AM
Ha good pic. I just got Katamari Damacy for my girlfriend--she finally likes a video game. That, and Piyotama.