Take Two Interactive Software Case Analysis
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1). T2 has capitalized with its mix of talented developers, “who create high quality games” and a “well trained sales force that knows how to sell” its games to the large retail chains (Gupta & Herman, p. 1). The success of the past year has proved to the industry T2 can create games outside of its popular “Grand Theft Auto franchise” (Gupta & Herman, p. 1).
T2, along with other software developing companies are required to place a large capital investment upfront and frequently wait as several years pass before the money is recouped and a profit, if any, is produced. This type of business model is risky given the unstable global economy. T2 executives do not appear to recognize the emergence of social or mobile gaming as opportunities for growth and expansion. Ben Feder, CEO of T2 states “Social games target a different segment of consumers, we build immersive games for hardcore gamers” (Gupta & Herman, 2011, p. 7). This type of thinking could lead T2 into extinction. If Feder is not open to expanding new market segments and mixing up T2’s business plan, he should be considered a weak link.
The time to strike is now as mobile gaming, fueled by the success of Apple products and “Social gaming remained the most exciting development in the video game industry” (Gupta & Herman, 2011, p. 7). T2 should enter the mobile social gaming industry with limited titles