Game developers are storytellers: Zelnick

LOS ANGELES, US: Tight costs are critical in the $60-billion video game industry but Take-Two Interactive chairman Strauss Zelnick says one thing needs to be even tighter: his relationship with top software developers.

Like award-winning writers at a movie studio, video game developers are storytellers behind the industry's most lucrative titles. Their software begets blockbusters such as Take-Two's "Grand Theft Auto", responsible for billions in revenue.

"We are really tight," Zelnick said in an interview. "We are talking to each other all the time and having meals together. I had dinner with the head of one of our studios last week and drinks with the head of another studio yesterday. We are constantly engaged."

Sparring between developers and companies have resulted in a number of blockbuster defections.

For example, Bungie, the developer of Microsoft Corp's "Halo", signed a 10-year deal this month to develop an action game with Activision Blizzard. Bungie was owned by Microsoft before going solo in 2007.

Earlier this year, Activision CEO Bobby Kotick fired the heads of its Infinity Ward studio Jason West and Vince Zampella. The beheadings at Infinity Ward, developer of the "Call Of Duty" franchise, led to the exodus of dozens of developers loyal to the two executives.

Activision birthed a studio to craft further "Call of Duty" games, leading to a thicket of suits and counter suits between Activision and the two executives. Gaming enthusiasts have even taken sides: A Facebook group called "Gamers against Bobby Kotick & Activision" has more than 1,700 members.

Honoring The Talent

At E3, where many of the 45,000 in attendance are developers, Electronics Arts CEO John Riccitiello took a moment during his press conference to spotlight West and Zampella, who were seated prominently in the audience.

EA has signed their new studio -- Respawn Entertainment -- to a publishing deal.

"In this business, it's not that typical," Zelnick said, referring to the developer drama.

France's Ubisoft, whose hits include "Assassins Creed" and "Splinter Cell, has also been hit by departures. So far this year, Ubisoft Montreal has lost creative directors Clint Hocking and Patrice Desilets, who were instrumental in the development of Ubisoft's "Prince of Persia" series.

"Development cycles are long and ... certain teams do their best work with certain properties," Zelnick said. "When you split up the team, sometimes properties don't do well or the team doesn't do well, or both. So the teams tend to do well with their properties for a long time."

Take-Two's latest hit, "Red Dead Redemption," was developed by Rockstar, the same house behind "Grand Theft Auto", perhaps the biggest selling video game series ever. Launched in May, "Red Dead", a highly-rated western years in the making, has already shipped 5 million units.

"We have had an exceedingly stable culture since we took over the business three years ago," Zelnick said.