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

Take-Two Interactive Software, Inc.

by Sunil Gupta and Kerry Herman


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;


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