Take Two chairman having second thoughts about OnLive

by: Nathan -
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Strauss Zelnick, the chairman of Take Two, shared with GamesIndustry.Biz his doubts on the initial success of OnLive. In a nutshell Mr. Zelnick sees OnLive as a benefit but cites first party console makers as the major players in the digital download future, not OnLive.

"I suspect what you'll see is the continuing growth of downloadable content and there will reach a point where even our console first-parties will have good reason to be in the downloading business as opposed to the packaged goods business."

This isn't the first time Mr. Zelnick has shared mixed feelings about OnLive; in an interview with GamesBeat he shared his doubts about a system of servers being able to handle all the features that OnLive promises.

"There’s no doubt consumers would find it compelling to download something instead of going to the store. But the server capacity is a big task for millions of people to play it at the same time."

Why is everyone making a big deal about what the chairman of Take Two thinks about OnLiveTake Two has already committed to having their titles BioShock and Major League Baseball 2K9 on the service. Anything Mr. Zelnick says about OnLive will color how other publishers and developers approach OnLive in the future. Currently he's walking that fine line between loyalties with old and new business partners. On one hand I believe he is genuinely excited about the possibilities of OnLive but is hedging his bets, knowing that first party console makers will come out with new business models to rival that of OnLive. I have shared my ideas on the inevitable move to all digital distribution but I think all the Take Two chairman is hoping for is a reduced cost in fabricating and shipping physical copies of games.
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