Take-Two CEO Strauss Zelnick addressed questions regarding project delays, brand reliance, and management capabilities during the company's annual online shareholder meeting. He stated that if the board believed the current management team was unfit, they should indeed be replaced, but he disagreed with the questioner's characterization of the company's performance.
An investor pointed out at the meeting that shareholders have endured years of project delays, missed expectations, and the company's continued reliance on a few major franchises. The investor thus asked whether the board still considers the current management team suitable to lead the company if these issues persist, and whether it is prepared to replace senior executives if operational performance and shareholder value fail to improve.
Zelnick acknowledged that the board has a responsibility to make adjustments when management lacks sufficient capability. However, he then responded by highlighting the state of the company when the current team took over. According to him, when the management team assumed their roles in March 2007, the company's revenue was under $1 billion, it was under investigation by at least four government agencies, and it had failed to file annual reports or hold annual shareholder meetings as required for 13 consecutive months.
Zelnick further stated that at the time, Take-Two had only one major game brand, GTA, with other operations running at a loss, bringing the company close to bankruptcy. He believes the current management team subsequently turned things around; the company's revenue guidance for the current fiscal year is now between $8 billion and $8.2 billion.
Addressing claims that the company relies heavily on major franchises like GTA, Zelnick specifically noted that Grand Theft Auto V, released in 2013, has remained among the top five best-selling games for the past 13 years. He cited this sustained sales performance to illustrate that GTA differs from most other game products.
Since its official confirmation in 2023, GTA VI has been delayed twice, with the current release date set for November 19. While Zelnick did not deny the delays, he argued that evaluating the current management should also take into account the company's operational changes since 2007 and the long-term performance of its core titles.