Take-Two CEO Strauss Zelnick responded to sharp questions directed at the company's management during an online shareholder meeting. One shareholder mentioned the multiple delays of Grand Theft Auto VI, the company's failure to meet expectations, and its continued reliance on a few major franchises, asking whether the board should replace senior executives if business performance does not improve.
Zelnick stated that if the company were indeed in the situation described by the shareholder, he would also agree with replacing senior management, but he disagreed with the assessment of the current management team's performance. He cited the situation when he took over the company in March 2007, noting that Take-Two's revenue was less than $1 billion at the time.
According to Zelnick, Take-Two was under investigation by at least four government agencies at the time, had not filed its annual report for 13 months, and had failed to hold an annual general meeting as required by law. The company then relied solely on the Grand Theft Auto franchise as its major series, with other business divisions operating at a loss, bringing overall operations close to bankruptcy.
Zelnick's management team has been with Take-Two for nearly 20 years since joining. He cited the company's operational status when he took over to defend the current senior management team. Take-Two now expects annual revenue to reach approximately $8 billion to $8.2 billion, a significant change from the less than $1 billion in 2007.
However, Take-Two is still facing other controversies. The company and Rockstar Games have been accused of obstructing union activities, with related cases currently being heard in court. Available materials do not specify the outcome of these cases.
Grand Theft Auto VI is scheduled to launch on PlayStation 5 and Xbox Series X|S on November 19. It has been 13 years since the release of Grand Theft Auto V, and the new game's lengthy development cycle has become part of the background context for shareholders questioning management.