Consolidation is inevitable. That's the message Take-Two Interactive CEO Ben Federer imparted to a business conference recently.
"Videogame development is not getting any cheaper. It's a capital-intensive business, and I don't see that going away. That will drive some of the smaller competitors out," he noted.
The comments come on the heels of the company chairman Strauss Zelnick's statement a week ago, in which he said Take-Two will not be sold and is looking forward to further growth.
Federer said game production costs have skyrocketed because of improved graphics potential and online play.
The company is set to release the delayed Grand Theft Auto 4 early next year and has weathered controversy over ratings for Manhunt 2.