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Cramer: A media stock ready to explode in China

Strauss Zelnick, Take-Two Interactive Software
Scott Mlyn | CNBC
Strauss Zelnick, Take-Two Interactive Software

As most of the traditional media stocks were absolutely obliterated in the market recently, Jim Cramer remains a fan of the nontraditional media plays, such as video games.

Take-Two Interactive is one of the top videogame makers in the world, creating such games as "Grand Theft Auto," the most popular game franchise of all time. It also has popular titles like "Red Dead," "Max Payne" and sport titles such as "MLB 2K" and "NBA 2K."

Read More Click here to watch Cramer's interview with Take-Two

Take-Two also reported a nuanced quarter on Monday, which proved its ability to put up good numbers from its catalog and digital areas with creative ways to drive sales and revenue through its use of its virtual currency system.

"It shows me that even when there is no new big game, this company has a much higher level of profitability than the old Take-Two," the "Mad Money" host said.

To find out more, Cramer spoke with Take-Two Chairman and CEO Strauss Zelnick.

"We have reached the point where we can project profitability on a going-forward basis, really, year in and year out," Zelnick said.

Additionally, Cramer noted that the popularity of basketball in China has absolutely sky rocketed recently, which could translate into a major opportunity for Take-Two.

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"'NBA 2K' online in China is the No. 1 online PC sports title in China, with 27 million registered users. It's a big business for us in China," the CEO said.

Historically, China has been a free-to-play business online for Take-Two as there is currently a ban on gaming consoles. If consoles were to enter the market, Zelnick thinks it could be a huge boost for Take-Two because the middle class in China is bigger than the entire population of the United States.

"This could be a game-changer, but it isn't yet. It's early days," Zelnick added.

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