GTA 6 Director Responds Defensively to Investor Concerns Over Ongoing Delays

Take-Two’s CEO, Strauss Zelnick, has spent years fielding inquiries about Grand Theft Auto 6, which is poised to be one of the most significant game launches in recent history when it drops in November. So, when a question arose during a brief shareholders meeting that touched on the game’s numerous delays, it was no surprise that he took a moment to push back, sounding a bit irked and defensive.

On September 17, during a concise meeting with shareholders, Zelnick addressed several questions from investors. Naturally, many of these centered around GTA 6, with inquiries about the PC version, multiplayer features, and other topics he has addressed vaguely over the years. However, one particular question seemed to get under his skin, prompting him to read it verbatim rather than paraphrasing, and to respond directly during the call.

“The next question I… actually will read,” Zelnick stated in an audio recording of the meeting. “Many shareholders have tolerated years of delays, missed expectations, and continued dependence on a small number of major franchises. If these issues persist, does the board believe that the current management team remains the right group to lead the company, or is prepared to replace senior executives if operational performance and shareholder value creation do not improve?”

Zelnick emphasized that Take-Two’s board is “diligent and rigorous,” demanding “high performance.” He asserted that if he and his fellow executives fail to meet expectations, they would be replaced. He then took issue with the question, which implied that Take-Two lacks diversification or success.

“I would, however, quibble with your characterization in the question,” Zelnick replied, his tone bordering on grumpy.

“When this management team took over in March of ’07, the stock price was 17. The company’s revenue was under a billion dollars, and it was under investigation by at least four government entities. They hadn’t filed annual reports in 13 months and had not scheduled an annual meeting despite being obligated to do so. They had one major franchise in GTA, while the rest of the business was losing money, and the company was on the brink of bankruptcy.”

“Since then, this management team has cut costs, significantly diversified the company, entered the mobile market, and launched over 11 franchises, each selling more than 5 million units. Today, we are the largest public pure-play interactive entertainment company by market cap. If a management team is judged by stock price, which I believe is an important metric, our stock has appreciated about 1,200% since March of ’07, compared to the S&P at 440% and the NASDAQ at 980%. This year, we anticipate revenue between $8 and $8.2 billion, with substantial pre-cash flow expected.”

He then moved on to the next questions before concluding the meeting. While Zelnick is right to highlight how far Take-Two has come since two decades ago, his response does come off as defensive. The company has a track record of delays and unmet expectations. However, with franchises like Borderlands, NBA 2K, GTA, Mafia, and a robust mobile gaming portfolio, Take-Two is more profitable than ever. It’s understandable why he might feel a bit annoyed by that line of questioning.

I can imagine Zelnick looking forward to a time when he won’t have to answer questions about GTA 6’s launch or features anymore. Instead, he’ll be fielding inquiries about its sales, updates, and ports for the next decade. I suppose the hefty paycheck helps ease the pressure.