Take-Two Interactive CEO on innovation and the future of video game industry

Take-Two Interactive CEO on innovation and the future of video game industry

Take-Two Interactive CEO Strauss Zelnick told "Mad Money" host Jim Cramer on Thursday that he believes Take-Two's games will one day look like live action.

The video game company CEO said interactive entertainment is the fastest growing part of the business, and he thinks that trend will continue. Referencing "Moore's law," Zelnick said that the idea that processors will hit a ceiling — in terms of decreasing size and increasing efficiency — hasn't happened yet, which leads him to believe "unquestionably" that video games will have the opportunity to look live action.

Take-Two Interactive reported earnings that exceeded Wall Street expectations on Wednesday. Zelnick said the video game company has sold more than 70 million units of "Grand Theft Auto 5" this year alone.

e added that the the GTA series has sold more than 250 million units worldwide since its debut 15 years ago. GTA 5 continues to be the No. 1 rated title for Xbox One and for PlayStation 4. Zelnick said the game has become the "standard bearer" for the industry.

The Take-Two CEO explained that his consumer base continues to grow because as people age, they don't stop playing video games. He said the average age of his consumer if 37 or 38, but emphasized that, for the rest of their lives, people will enjoy the same entertainment they consumed avidly when they were 17.

Zelnick said "NBA 2K17" is no longer considered a "seasonal game," adding that engagement lasts year round, meaning that revenue also lasts year round because of recurrent consumer spending opportunities both in the game and in the companion app. The "NBA 2K" series has sold more than 66 million units globally, including more than 7 million units each for "2K14," "2K15" and "2K16."

The company also has the license for the "WWE 2K" franchise. "WWE 2K16" has sold more than 3 million units this year, and Zelnick said he expects to be up year-over-year on the title.

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