Take-Two CEO: ‘Google’s Project Genie AI is a great sign of things to come’

Take-Two Interactive CEO Strauss Zelnick recently addressed the industry impact of Google’s Project Genie, framing the generative AI technology as a significant opportunity for game development rather than a threat. Despite a 12% decline in Take-Two’s share price following the announcement of the AI tool, Zelnick maintained that machine learning is a core tenet of the company’s strategy to drive both operational efficiency and creative output. He emphasized that while AI serves as a powerful tool for creators, it cannot replace the human element required to produce high-quality entertainment experiences.

The company’s financial performance remains robust, with net bookings reaching $1.76 billion for the quarter, exceeding guidance of $1.6 billion. Growth was driven by strong performances across all divisions, including a 19% revenue increase in mobile games via Zynga, a 27% rise in GTA Online, and a 30% jump for the NBA 2K franchise. Zelnick highlighted international expansion, particularly in China, as a key area for continued growth, while noting that partnerships with platforms like Netflix are effectively reducing distribution friction.

Separately, the Epic Games Store is actively seeking to capture a larger share of the PC market by targeting smaller developers who traditionally default to Steam. Epic reported that player spending on third-party PC games reached $400 million last year, a 57% increase over 2024. To further compete, Epic plans to launch a multiplatform store initiative by mid-2026 and scale its cross-promotional marketing efforts, such as integrating Fortnite cosmetics into third-party titles. Epic currently estimates its market share for third-party PC stores at between 9% and 12%, with a long-term goal of reaching 25% to 35%.