Those 'not capitalised for transition' won't make the cut says Take2 CEO

Zelnick predicts console transition closures

Take2 CEO Strauss Zelnick has prophesied doom for companies unprepared for the transition to next generation consoles.

Speaking at the Credit Suisse 2012 Technology Conference, Zelnick says it’s reasonable to expect a few third party publishers to close their doors as costs rise.

"If you’re not capitalised for the transition, you can find out that you’re not there for the transition," said Zelnick as reported by Gamespot.

"And historically, in every transition that’s occurred in this business, one or two third-parties have gone out of business. Last time around it was Midway and a couple of others.

Zelnick isn’t naming names, but he hints strongly at his earlier remarks that THQ wouldn’t "be around in six months."

"Reasonable people can argue about which one it’ll be this time. I have my own point of view, which I haven’t exactly been quiet about. We make sure we’re not on the list of casualties; to the contrary, we’re on the list of winners."

Six months have passed and THQ is still kicking, but with creditors knocking at the company doors it seems the odds are stacked heavily against the publisher.

The question of who else Zelnick has in mind is academic; no company is entirely relaxed about the increased costs of next generation console development.

It’s easy to see there’s strength to Zelnick’s argument. The bigger concern is what can be done to save the publishers who may be consigned to the history books as costs rise and existing retail models are challenged.

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