Strauss Zelnick: Yes. I mean, we’ve been believers in our gaming. We were one of the first licensees, if not first license — licensor, sorry, to Stadia, to support that project. But remember, cloud gaming is a technology. It’s not a business model. It’s a distribution technology. And our view is, broader distribution is always a good thing in the entertainment business. If we can reach more consumers with our properties, we’re happy to do it as long as the terms make sense. And I think broader distribution over time probably benefits us in any number of ways, including the cost of distribution, which I believe will go down over time. That said, I’ve never felt like cloud gaming would be size — would represent a seismic change.
Because I think if you’re prepared to pay $60 or $70 for frontline title, you’re also prepared to buy a console. And I think Stadia found that out. So bringing high-quality titles to consumers who don’t have consoles will probably have an effect around the edges, but I don’t think it will be a revolution in the business, I think it will be more an evolution in the business. And there’s still technical challenges to be addressed.
Jason Bazinet: Very helpful. Thank you.
Operator: Thank you. Our next question is from Matthew Thornton with Truist Securities. Please proceed with your question.
Matthew Thornton: Yes, thanks. Hey, Strauss, another big picture question. As you look out over the next several years, maybe in the next 5 to 10 years, I’m curious, kind of, your thoughts on how AI can impact the business good or bad? Or again, what you see on the horizon as potential disruption opportunity? Just any thoughts there would be helpful, particularly how you’re thinking about AI. Thanks, again.
Strauss Zelnick: You know, I’m the first person to be skeptical of other people’s side. And I would like to note that, AI stands for artificial intelligence, and there is no such thing as artificial intelligence. All that said, I’m really excited about what we’re seeing right now with ChatGPT and other leaps forward in artificial intelligence and machine learning. And I do think that we’ll be and others will be creating tools that will enhance our development and probably reduce some of the costs for what we have to do today. But I don’t think you’re going to see it have an effect on the overall cost structure of the business, because I think it will just raise the bar. I think any time you make things easier, we’re going to want to do more and our teams will want to do more.
The belief among college students, the ChatGPT is not going to allow them to just make a query in sending their homework. The problem is — the question is describe what actually happened on the night of Paul Revere’s ride, if that’s the question, and everyone gets the same question, which you do in class and everyone uses ChatGPT, whoops, everyone’s going to submit the same assay last time I checked. And so ChatGPT is today’s hand calculator. When I was a kid, there was no such thing. I hate to admit, but it’s true. So I had to do math longhand. And then hand calculators came along and parents were up in arms that thought, ‘Oh, kids won’t have to learn math anymore. And the answer is yes, you still have to learn math, turns out. You absolutely have to learn math.
Like you have a tool that makes it easier to do. And ChatGPT is the same thing. We are ushering in a very exciting era of new tools. And they’re going to allow our teams and our competitors’ teams to do really interesting things more efficiently. So we’re going to want to do more. We’re going to want to be even more creative. And no, it’s not going to allow someone to say, please develop the competitor to Grand Theft Auto that’s better than Grand Theft Auto, and then they will just send it out and ship it digitally and then that will be that. People will try, but that won’t happen.
