GTA Company says relying solely on sequels could spell disaster

Take-Two boss Strauss Zelnick has spoken about the importance of creating new franchises, or ‘new IP’, in industry jargon. During the day Take-Two’s latest earnings briefingZelnick said nothing stays popular forever, so it’s a business essential to always make new things instead of relying on sequels.

“We are different from many other large companies. It is tempting for a large company to rest on its laurels,” he said.

Take-Two would know a thing or two about having major franchises, as the company owns the Grand Theft Auto and Red Dead franchises, both of which are hugely successful. Take-Two has named GTA and Red Dead “permanent” franchises, meaning the company will never stop making sequels.

At the same time, however, Zelnick said Take-Two must create new franchises or risk business decline.

“We know that if we release a follow-up, it will be a lower risk proposition than new intellectual property. But everything is going backwards. And while most of our franchise sequels tend to do better than the previous release, and we’re very proud of that, that’s because that’s not industry standard,” he said.

Zelnick added: “The truth is that there is something called decay and entropy, and it is a characteristic of physics and human life and everything that exists on Earth. And so everything eventually decays, including hit titles. So if we’re not trying new things and acquiring new intellectual property, we… when we say we’re resting on our laurels, we’re really underestimating that. We really run the risk of burning the furniture to heat the house, and that didn’t end well.”

The director said Take-Two will continue to try new things even if they don’t succeed. Gearbox’s MOBA Battleborn is an example of a new Take-Two project failing to find an audience; the same can be said for Evolve. Outside of the console/PC space, Zelnick said Take-Two is trying new things on mobile and has had some success with games like Match Factory and Toon Blast.

Trying new things means that “the risk profile is higher,” and Take-Two will sometimes make a mistake and take a hit financially. “But over time it is one of the most important ways to create sustainable value,” he said of new IP.

Looking ahead, Take-Two has a number of new IPs in the works, including the multiplayer game Project Ethos. Zelnick said on the call that he “couldn’t be more proud” of the 31st Union team and the game itself. 31st Union held an open test for the game earlier this year and Zelnick said the team was “excited” by the feedback. “So we’re off to a good start and there will be more to come,” he said.

Another new IP from Take-Two is Judas, the next game from BioShock designer Ken Levine.

Take-Two’s biggest upcoming game is Grand Theft Auto VIwhich will launch in Fall 2025 for PS5 and Xbox Series X|S. The company also has Borderlands 4 from Gearbox in 2025. These games will not be released close to each othersuggesting that Borderlands 4 will release sooner in 2025.