In periods of high growth, like where we are now, B titles and C titles can do OK. But as soon as you get to the point where the platform penetration has reached its asymptote, then quality reins supreme. We think that if you focus on quality all along, regardless of where the market peak is, you will do better.

Explaining, perhaps, why T2's Wii catalogue isn't quite as robust as some other publisher's.

E3 perspective: Q&A with Chairman Strauss Zelnick on the future of Take-Two Interactive [VentureBeat]

When we go head-to-head with 'Brand X' we out-rate them significantly...We outsell them when we go head-to-head. It's sort of an unheralded achievement. This is a tough business.

On one hand, he's right! 2K's basketball and hockey games are normally top-shelf, and they've got baseball to themselves. But the "head-to-head" bit...yeah, it's dancing around that elephant in the room. 2K don't have an NFL game in the US. They don't have a football game in Europe/Asia. That's like saying my 92 Corolla can take on a Ferrari head-to-head, so long as we're...both sticking to the speed limit. And the speed limit's 30.

2K Sports unheralded against EA Sports, says Zelnick [GI.biz]

Zelnick's answer? "Possibly," but Zelnick said there's nothing currently in Take-Two's schedule that fits that bill. For his part, Zelnick is waiting to see how much staying power the trend has, and whether to define it as a "music genre" or a "rhythm genre."

Zelnick said such considerations are "terribly important when you invest in AAA properties that you expect people to play for over 20 hours."

Zelnick has good reason to demonstrate his restraint to his investors, of course - right now his mandate is to prove that they're better off sticking with his guiding hand than with EA's.

He answers CNBC's Michelle Caruso Cabrera's question about any post release GTA IV glitches very confidently—and incorrectly—saying "No, you know, no, none whatsoever. I'd say the only issue is that someone came up to me yesterday in a restaurant and said my thumbs were hurting from the weekend!"

Tee hee! Oh, Strauss! Are you the chairman of fun, too? At least I'm not the only one suffering from stabbing thumb pain born of constant sprinting.

We're not sure if Strauss is being shielded from technical issues or doesn't want the CNBC viewership to know about GTA IV's mysterious freezing problem, but with multi-thousand post forum threads continuing without an official working solution it's hard to swallow this from senior management. GTA IV's performance problems may be limited to a small minority of its owners, but to claim that it's free totally free from technical issues makes you either dishonest or woefully uninformed.

Take Two's Grand Theft Auto IV [CNBC via MaxConsole]

In a call to investors and analysts, Zelnick and crew chalked up the better than planned for quarter to sales of stuff like Carnival Games and Manhunt 2, plus portions of Take-Two's back catalog. I'm not much of a gambler, but I'd be willing to wager that next quarter, they'll do much, much better.

Take-Two Interactive Software, Inc. Reports First Quarter Fiscal 2008 Financial Results [Take-Two]

The timing of this move is more than a little suspect, and has understandably caught the attention of business analysts and corporate governance experts alike. While pay increases and stock deals for executives are common, negotiating a deal that will see you make big money if your company is bought while an offer to buy the company is on the table raises some ethical questions.

In his defence, Zelnick argues that since taking over the company, he's turned their fortunes around, as evidenced by EA's takeover interest. Also, it's worth remembering the pay deal's not final: while ZelnickMedia and Take-Two's board have approved it, shareholders need to agree to it as well before it's finalised.

Either way, the matter should be settled after April 30, the date Zelnick said he'd reopen discussions with EA: if he nets Take-Two shareholders an increase over the $26 per share EA originally offered, his new share deal will be just rewards. But if he signs off on the deal for what EA were originally offering before his shiny new pay package was drawn up...well, he might find himself in trouble.
Take-Two Raises Eyebrows [Wall Street Journal]
Zelnick's Take-Two compensation: a fair and balanced appraisal [Variety]

Hickey also points to "opportunities" in the GameDaily BIZ report, such as sequels to Red Dead Revolver, Max Payne and a theoretical Grand Theft Auto MMO as nice-to-haves. Maybe I'll just buy them and expense it.

Take-Two Acquisition Looming, Predicts Analyst [GameDaily.biz]

I'm much more interested in growing the business than in selling it, to be clear. I would say for the next five to seven years this is a terrific time to be in the video game business.

Asked whether one console in particular was the root of the problem, Zelnick diplomatically responded that "I know there have been rumors in the marketplace about frame rate and some other issues. We don't think it's helpful or beneficial to go into exact details of what the technological issues are. We're pushing the envelope on both the platforms." Crap. Now I don't know which torch to light!

Zelnick explained that "the final say" to delay GTA IV was with him, but that "This wasn't a decision we took lightly. This wasn't a decision [Rockstar] took lightly." Having reviewed a build just a day prior to the announcement Take-Two felt that there was no way it could meet the game's October 16th release date.

On the subject of the Xbox 360 exclusive episodic content—the first episode of which was due in March—Zelnick responded that it wouldn't affect the deal, telling analysts that "We're not gonna send money back to Microsoft. That's not part of the deal."

No time frame was provided during the call for Rockstar Games' other release, Manhunt 2, with executives claiming they'd erred on the side of caution and won't provide an updated release date until they have an M-rating.

Zelnick and Feder also noted that they hate your guts and don't want you to have any fun. Yes, you.

The AO rating was not intended when it was developed to mean a non-rating. That wasn't the point. If you can't market it because you aren't allowed by the licensors or the retailers won't carry it, then the rating doesn't have any meaning. Clearly one has to discuss what its purpose is.