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00:00ALL-STAR TECH CONFERENCE AND I AM JOINED BY GAME OR EXTRAORDINARY, STRAUSS ZELNICK. WHEN WE THINK ABOUT WHY WE ARE HERE, TECHNOLOGY IS A BIG PORTION OF IT. ONE OF THE REASON YOU HAD SUCH A GOOD QUARTER IN THE THIRD QUARTER, WAS THOSE GAME TITLES. WRESTLING OR BASKETBALL, HOW MUCH TO THE IMPACT YOUR BOTTOM LINE? STRAUSS: WE HAVE SOLD 5.5 MILLION OF OUR BASKETBALL TITLE. OUR WWE TITLE WAS UP 40% YEAR OVER YOUR BASKETBALL TITLE AND ENABLES CONSUMERS TO STATE ENGAGE AND WE MONETIZE THAT ENGAGEMENT. THE VIRTUAL CURRENCY IS UP 90% YEAR OVER YEAR. STEPHANIE: HOW ARE YOUR GAMES DIFFERENT? STRAUSS: THEY ARE BETTER. WE HAVE THE HIGHEST RATED SPORTS TOTALS IN THE BUSINESS. IN THE INTERACTIVE ENTERTAINMENT BUSINESS, CONSUMERS PAY ATTENTION TO REVIEWS AND HIGH REVIEWS AND HIGH SCORES ARE DIRECTLY CORRELATED WITH PERFORMANCE. STEPHANIE: HOW BIG CAN SPORTS GAMES GET? WHEN WE THINK OF TAKE TWO, WE NORMALLY THINK OF "GRAND THEFT AUTO." STRAUSS: OUR COMPANY HAS BECOME DIVERSIFIED. WE HAVE FIVE BIG TITLES OVER THE HOLIDAY SEASON. GRAND THEFT AUTO IS ENORMOUS. THAT SAID, WE HAVE BUILT 10 OTHER MASSIVE FRANCHISES, INCLUDING NBA 2K AND IT IS NOT JUST NBA 2K AND CONSOLE FORM, ONLINE IT HAS 24 MILLION REGISTERED USERS IN CHINA. THAT BRINGS US REVENUE AND PROFIT EVERY MONTH. IT IS LIKE CLIPPING COUPONS. STEPHANIE: WHAT SPORTS FRANCHISE DO YOU WANT NEXT? STRAUSS: IN TERMS OF WHAT IS NEXT, WE WANT TO DO BETTER WITH WHAT WE HAVE ON OUR PLATE. HOPEFULLY WE HAVE INNOVATIVE IDEAS AND WE TEND NOT TO SHARE THEM PUBLICLY. WE ARE NOT THE BIGGEST SPORTS BIGGEST -- BUSINESS. STEPHANIE: DO YOU WANT TO BE? STRAUSS: OUR COMPANY IS FOCUSED ON BEING THE BEST. WE ARE ONE OF THE TOP THREE, THE TOP TWO ARE MUCH BIGGER COMPANIES. WE HAVE A LOT OF WOOD TO CHOP. ONE OF THEM HA S A MASSIVE SPORTS TITLE. STEPHANIE: CAN YOU SEE YOURSELF TRULY COMPETING WITH MADDEN? STRAUSS: WE ARE BIGGER THAN MADDEN. CAN THEY ASPIRE TO BE BIGGER THAN NBA 2K? STEPHANIE: WHO IS ACTUALLY PLAYING? WE LEFT IS A GAMERS ARE GUYS BETWEEN THE AGES OF 18 AND 38 SITTING IN THEIR MOM'S BASEMENT, BUT WHO ARE THEY TODAY? STRAUSS: THEY SKEW MORE MALE THAN FEMALE, BUT OVER 40% OF OUR CONSUMERS ARE FEMALES AND OUR MEDIAN AGE IS 38 YEARS OLD. IT IS THE ONLY GROWTH BUSINESS IN THE ENTERTAINMENT BUSINESS THAT IS GETTING BIGGER AND BIGGER, AND AS THAT HAPPENS, THAT COHORT AGES. THAT COHORT WANTS BETTER AND MORE ENGAGING AND MORE ELEGANT TECHNOLOGY THAT DRIVES FUN ENTERTAINMENT EXPENSES. STEPHANIE: HOW ABOUT YOUR MOBILE MARKET, HOW MUCH CAN THAT GROW? STRAUSS: IT CAN BE ENORMOUS. WE HAVE JUST SCRATCHED THE SURFACE. WE HAVE ONLY BROUGHT A FEW TITLES TO TABLET. WE HAVE COMPANION AX SMARTPHONES, NBA 2K. A WRESTLING GAME HAS BEEN DOWNLOADED 6 MILLION TIMES. IMAGINE WHERE WE CAN GO AS WE BRING MORE COMPANION APPS TO CONSUMERS. THEY GENERATE CONSUMER SPENDING AND IMAGINE WHAT HAPPENS TO MARKET OVERALL AND TABLETS BECOME AS POWERFUL AS PCS. STEPHANIE: DO YOU WORK WITH THE LEAKS THROUGH YOUR GAMES? STRAUSS: DO THEY WORK WITH US IS THE ANSWER, AND YES, WE HAVE A TIGHT RELATIONSHIP WITH DEBBIE DEBBIE AND ADAM SILVER AND ALL OF HIS COLLEAGUES AT NBA. STEPHANIE:, TO IS IT A BENEFIT FOR YOU AND ALL THESE PLAYERS HAVE BECOME BRANDS. THEIR PERSONALITIES HAVE BECOME BIGGER. DOESN'T MAKE THE GAME'S MORE MARKETABLE? STRAUSS: HAVING MUSIC INVOLVED AS WELL. WE ARE DELIVERING A ROUND, BROAD, BIG ENTERTAINMENT EXPERIENCE. THAT INVOLVES MUSIC, PERSONALITIES, STORIES, AND MOST RECENTLY INVOLVES PEOPLE ABLE TO PUT THEMSELVES INTO THEIR GAMES. YOU CAN SCAN YOUR OWN HEAD AND GET INTO THE GAME. STEPHANIE: IT IS SO MUCH MORE EXPENSIVE TO PUT OUT THOSE GAMES BECAUSE OF THE ELEGANCE, THEY ALL WANT TO HAVE A PIECE. IT IS NOT LIKE A FEW YEARS AGO WHERE IT WAS RANDOM PLAYERS. STRAUSS: IT IS AN EXPENSIVE BUSINESS AND THE RISK PROFILE REFLECTS THAT. THE RETURNS ALSO REFLECT THAT. THE HIT RATIO FOR A WELL ENTERTAINMENT COMPANY IS IN THE 80'S. THE HIT RATIO IN THE MOVIE BUSINESS IS IN THE 30%. AND THE INTERACTIVE ENTERTAINMENT BUSINESS, IF YOU DO IT RIGHT, IT IS A LOVELY AND ELEGANT BUSINESS MODEL. THOSE VERY EXPENSIVE PRODUCTION, MARKETING, OVERHEAD, AND LICENSING, THEY DO CREATE A RISK PROFILE. FROM OUR POINT OF VIEW, IT EMBEDS THE WINNERS FURTHER AND CREATES A BARRIER TO ENTER INTO OUR BUSINESS. WHAT SEEMS LIKE A PROBLEM -- >> GUYS WITH AN IPAD SIBLEY CAN'T YET IN -- SIMPLY CAN'T GET IN? STRAUSS: NOT WITHOUT A COUPLE HUNDRED -- WITH 200 ENGINEERS AND ARTISTS. STEPHANIE: WHAT DOES THIS WEEKEND MEAN TO YOU? HOW DOES IT AFFECT YOUR BUSINESS? STRAUSS: I LOVE THAT OUT OF IN THE TEAM ARE STARTING WITH TECHNOLOGY. I LOVE THAT WE ARE AT THE CENTER OF NEW YORK AND GETTING ALL THIS ATTENTION. BASKETBALL HAS SO MUCH GROWTH AHEAD OF THEM AND THAT BENEFITS US. I HOPE THERE WILL BE ATTENTION

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