Microtransactions in games like Grand Theft Auto Online have become big business for video game publishers. And it’s likely that’s not going to change anytime soon. New details unearthed in a recent contract extension for Strauss Zelnick, CEO of Take-Two, explain that the CEO will earn a big bonus as more players spend more money on purchasing in-game items, coins, and skins.
When reported by axiosa new contract extension for Zelnick means the 64-year-old CEO will continue to run Take-Two through 2029. It also lays out how the executive will greatly benefit from liking games GTA Online, NBA 2K, and border areas Encouraging players to spend additional money on in-game items referred to in the contract as “recurring consumer spend” or RCS items. These items are defined in Take-Two’s contract as digital add-on content, in-game items and virtual currency.
Zelnick could earn millions in stock bonuses if the company and its studios sell enough RCS items to meet or exceed certain thresholds outlined in the contract. Based on financial records in 2021 Take-Two earned over $1.65 billion from April through December only on microtransactions. In the same span of time, full game purchases only brought in around $890 million. So it’s clear that Take-Two sees MTX purchases like skins and Battle Passes as an important way to generate more revenue.
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And although this is not the case Zelnick’s first contract that grants a potentially large stock bonus for selling more in-game items, CEO performance is now more affected by MTX purchases than before. This is another sign that Take-Two is investing heavily in microtransactions in its biggest and most popular games.
my box contacted Take-Two and asked about the new contract and its bonuses.
It should be noted that CEO performance bonuses and incentives are a common part of contracts for such high profile and large companies. And Zelnick’s contract extension also lists even bigger bonuses if Take-Two’s NASDAQ stock prices rise in the future. So it’s not like he’s all about making sure you and your friends buy more Shark Cards as CEO GTA Online. However, it is still worth noting that in-game microtransactions continue to grow and since then seem to have become the most dominant way some big publishers will make money in 2022.
