Take-Two CEO sees industry consolidation as 'inevitable'

by Ludwig Kietzmann { Dec 3rd 2007 at 8:25PM }

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.

Tags: Activision, Activision-Blizzard, Take-Two, TakeTwo, Vivendi

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.