Take-Two Chairman Doubts OnLive Possibilities

Take Two chairman Strauss Zelnick has revealed that the OnLive Games-on-demand service didn’t respond to their market strategy:

"The bulk of our business is packaged goods because initial releases are for the console business. Basically what they [OnLive] are offering is to say 'you go ahead and develop however you want, we'll put it in a live situation and it scales infinitely'."

"If you believe that that's going to occur – and I don't need to opine because it doesn't really speak to our business model – that would meaningfully and beneficially transform the economics of our business. Why? Because we'd create for one platform, not multiple platforms, we wouldn't create inventory, we wouldn't have price protection and you wouldn't have trucks."

Zelnick, however, did admit the growing importance of Digital markets and that first parties will growingly enter into digital distribution as normal retail sales progressively fall.

Once more, the shade of doubt has been spilt on the unborn OnLive service and many believe that it won’t make it to the market in a very long time.

Source: GI