May 20, 2022

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Rockstar Parent CEO earns big bonus for in-game sales

Rockstar Parent CEO earns big bonus for in-game sales

Photo of Strauss Zelnick speaking on stage.

picture: John Phillips (Getty Images)

Microtransactions in games like Grand Theft Auto Online It has become a big business for video game publishers. And that likely won’t change anytime soon. New details spotted in a recent contract extension for Take-Two CEO Strauss Zelnick show that the CEO will get a big bonus if more players spend more money on buying in-game items, coins, and skins.

Like reported by Axiosa Zelnick’s new contract extension It means that the 64-year-old CEO will continue to run Take-Two until 2029. It also shows how the CEO would benefit greatly if games like GTA Online, NBA 2K, And Borderlands Urging players to spend additional money on in-game items, referred to in the contract as “recurrent consumer spending” or RCS items. These items are defined by the Take-Two contract as Digital bonus content, in-game items, and virtual currency.

Zelnick could earn millions in stock bonuses if the company and its studios sold enough RCS items to meet or exceed certain thresholds listed in the contract. Based on financial records, in 2021 Take-Two earned over $1.65 billion from April to December For micro transactions only. In the same time period, full game purchases brought in only about $890 million. So it’s clear that Take-Two sees MTX purchases like skins and battle cards as an important way to generate more revenue.

Read more: Despite the pandemic, gaming CEOs made an outrageous amount of money in 2020

And while this is not the case Zelnick’s first contract to award potentially large stock bonus To sell more in-game items, the CEO’s performance is now more affected by the purchase of MTX than before. It’s another sign that Take-Two is investing heavily in microtransactions within its biggest and most popular game.

Kotaku I contacted Take-Two to inquire about the new contract and its rewards.

It should be noted that the CEO performance bonuses and incentives It is a common part of contracts For such prominent and large companies. Zelnick’s contract extension also lists larger bonuses if Take-Two’s NASDAQ share price rises in the future. So it’s not like his only concern as a CEO is to make sure you and your friends buy more Shark cards. GTA Online. However, it is still notable that in-game microtransactions continues to grow and since then has apparently become The dominant way some major publishers make money in 2022.

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