Case | HBS Case Collection | October 2010 (Revised May 2011)

Take-Two Interactive Software, Inc.

by Sunil Gupta and Kerry Herman

Abstract

In September 2010, faced with increasing threat from social game companies such as Zynga, Ben Feder, the CEO of Take-Two Interactive Software. Inc., had to decide the long-term strategy of his video-game company. As a publisher of traditional video games for Xbox 360, PlayStation 3 and Nintendo, Take-Two had several popular video games, such as Grand Theft Auto, to its credit. However, the video game industry was undergoing a major transition. In addition to digital downloading and cloud gaming, casual and social games were transforming the video game industry. Electronic Arts, one of Take-Two's major competitors, acquired a social gaming company in November 2009 for $400 million. In August 2010, Disney bought another social gaming company for $763 million. Social games were developed, marketed and monetized very differently from traditional console games. Should Take-Two follow the lead of its competitors or continue to focus on its core business?

Keywords: Mergers and Acquisitions; Business Model; Leadership Style; Marketing; Competitive Strategy; Entertainment and Recreation Industry;

Citation:

Gupta, Sunil, and Kerry Herman. "Take-Two Interactive Software, Inc." Harvard Business School Case 511-002, October 2010. (Revised May 2011.)