In September 2010, faced with the increasing threat of social gaming companies like Zynga, Ben Feder, CEO of Take-Two Interactive Software. Inc., had to make the long-term strategy of his video game companies. As editor of the traditional video games for Xbox 360, PlayStation 3 and Nintendo, Take-Two had several popular video games like Grand Theft Auto, to his credit. However, the video game industry is undergoing a major transition. In addition to digital downloads and cloud gaming, … Read more »

In September 2010, faced with the increasing threat of social gaming companies like Zynga, Ben Feder, CEO of Take-Two Interactive Software. Inc., had to make the long-term strategy of his video game companies. As editor of the traditional video games for Xbox 360, PlayStation 3 and Nintendo, Take-Two had several popular video games like Grand Theft Auto, to his credit. However, the video game industry is undergoing a major transition. In addition to digital downloads and cloud gaming casual and social games are transforming the video game industry. Electronic Arts, one of Take-Two main competitors, acquired a social gaming company in November 2009 for $ 400 million Euros. In August 2010, Disney bought another social gaming company for $ 763 million. Social games have been developed, marketed and monetized very different from traditional console games. Take-Two should follow the lead of its competitors or to continue to focus on their core business?
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from
Sunil Gupta,
Kerry Herman
Source: Harvard Business School
20 pages.
Publication Date: Oct 13, 2010. Prod #: 511002-PDF-ENG
Take-Two Interactive Software, Inc. HBR case solution