"Making a big hit was hard then, and it's hard now, and it's going to be hard in the future."
Today, as part of Take-Two Interactive Software's Q2 2027 earnings call, Strauss Zelnick fielded questions from investors after presenting the financial results of the company. One caller was concerned about AI - specifically about the proliferation of AI-powered compilations and decompilations that have been raising piracy concerns for publishers over the past few weeks.
Zelnick notes that "[the video games] business has been largely immune to piracy" thanks to factors like file size, how console ecosystems work, and aspects related to the online nature of the games industry. That said, Strauss continues, there is a threat posed to the industry because of AI. However, he assures listening investors that Take-Two is appropriately scaling its measures against bad faith actors using artificial intelligence.
"We are utterly focused on enhancing our technical defences and enhancing our legal activities appropriately. And - at the same time, without in any way being cavalier - every entertainment business that exists is subject to some element of piracy, [and] this is likely to invade our business to a greater or lesser extent. I think it will be manageable and we are focused on it."
Zelnick pivots back to AI again later in the call, where one investor once again asks about AI, seemingly keen to learn whether the CEO feels it can provide GTA 6 developer Rockstar with any kind of "competitive advantage" in the games industry. Given Zelnick's previous comments on the subject, his answer was not a complete surprise.
"It's always been true [that technology benefits us]," explains Zelnick. "We've always created our entertainment inside computers with technology. All advances have benefited us, and I don't expect that that will change - in fact, I hope it'll accelerate. I think at the same time, what we're known for [at Take-Two] is the desire to make the best entertainment on Earth. And, more often than not, we have succeeded - and the creativity that drives that success is human creativity harnessing technology. And I think that's what you'll see in the future, too.
"Undoubtedly some of the most recent technological advances that you've seen have made it easier to create assets. Where all that is consistent with the story of our business. When I started in interactive entertainment (longer ago than I would like to say), it was really difficult to create an asset in a computer. Today, it's a whole lot easier - but you know what's not easier? Making a big hit. Making a big hit was hard then, and it's hard now, and it's going to be hard in the future. And hit creation remains the purview of human beings."
This isn't the first instance of AI skepticism we've seen from Strauss Zelnick. Back in March, he outright rejected the idea that AI can tackle games on the scale of GTA 6. Elsewhere in the call, the Take-Two CEO reiterated how well GTA 6 is tracking as he reasserted pre-order numbers are well above expectations, and promised that the success of the game will "set a new baseline" for Take-Two's gaming business.









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