Take-Two CEO Minimizes Google Genie Threat, Expresses Enthusiasm for AI

Last week, Google’s Project Genie led to investor speculation in the video game industry with its promise of interactive environments generated from simple prompts. However, Take-Two Interactive CEO Strauss Zelnick appeared unconcerned. The quarterly report included a discussion initiated by investors about using AI for interactive experiences. Zelnick initially expressed surprise at the market’s reaction to Genie but chose not to single out Google’s technology. Instead, he emphasized the potential benefits of AI, which Take-Two and its studios are already leveraging. “The gaming industry’s always been all about tech, like machine learning and AI,” Zelnick stated during the call. “We’ve been stoked about generative AI for about 18 months now. Right now, we’re jumping in with both feet, testing it out loads of ways across our company. It’s looking good so far—could help us work smarter, cut costs, and let our creatives focus on the fun stuff instead of boring tasks.”

Karl Slatoff, Take-Two’s President, added that while Project Genie sounded promising, the company was exploring concrete applications for game developers. “No way this replaces creatives’ work,” Slatoff said. “Right now, it’s more like an interactive vid made through programming. There are limits, yeah, Google’s said that. But game devs got so much more—world creation, plot, emotions, missions… AI can’t do all that alone or with just a world builder. So this is just a small part of what we do, and if it works, great.” When asked again about Project Genie, Zelnick stated his support for AI but questioned the hype, noting that it isn’t creating actual games yet. He reiterated that Take-Two is already leveraging machine learning and AI to boost efficiency. While he finds Google’s technology interesting, he emphasized the key question is how it will assist game developers. Zelnick stated that Take-Two’s products have always incorporated machine learning and AI. “We’ve been leading the pack all along, and right now we’ve got hundreds of pilots and implementations happening within our company, even in our studios,” he said. “We’re already seeing cases where AI generative tools are saving time and money.”

AI-Enhanced Development and Global Expansion at Take-Two with NBA 2K Leading the Way

Despite the attention surrounding Google’s Genie, Take-Two reported record revenues and is in a strong financial position. The company has $1.76 billion in cash reserves, exceeding their projected best-case scenario of $1.6 billion. According to the latest report, every segment of the company performed above expectations: Zynga’s mobile games revenue increased by 19%, Grand Theft Auto (GTA) Online revenue from Rockstar Games rose by 27%, and NBA 2K revenue grew by 30%. Zelnick noted that NBA 2K is now the leading sports game in the U.S. and is performing well in China. “We’re the biggest sports title in North America, but not globally yet,” he said. “There are big opportunities overseas. Our online NBA 2K game is number one on PC in China. We’ve just launched a new mobile basketball game there with Tencent that’s doing great. So, we’re feeling really good and excited about what’s ahead.” Take-Two is therefore focused on integrating AI to enhance its development processes while maintaining its established market leadership and financial stability.

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