Strauss Zelnick has revealed he is ‘confused’ by how the stock market has been reacting to generative AI and the video game industry.

Strauss was asked about this by TD Cowen analyst Doug Creutz in Take-Two’s recent financials Q&A. Creutz asked about video game company stocks dipping around the world after Google revealed their AI generator Gemini can now generate videos that look like video game cutscenes.
Strauss started out by admitting that he was confused by the reaction. He argues that video games were built on ai and machine learning.
Strauss then explained that Take-Two is embracing gen AI, with ‘hundreds of pilots and implementations.’
Strauss didn’t name Rockstar or 2K Sports, but we have to assume that they’re using some of those pilots and implementations.
Rockstar probably did not use gen AI to make GTA 6, like Strauss declared. This is probably because it’s too late in development to even start.
Strauss’ full comment can be read below.
I have to admit I’m a little confused. Uh you know, the video game business since its inception was built on the back of machine learning and artificial intelligence.
Um, we create our games in computers with technology and ever since questions began about generative AI about 18 months ago, I’ve been incredibly enthusiastic about what the future can bring.
Um, as it happens now, we’re actively embracing uh, generative AI. We have hundreds of pilots and implementations across our company, including with our studios.
And we are seeing opportunities to drive efficiencies, reduce costs and create the opportunity to do what digital technology has always allowed which is the mundane tasks become easier and less relevant which frees up our creators to do the more interesting tasks of making superb entertainment.
