Take-Two's microtransaction terminology now includes NFTs

Take-Two Interactive's definition of Recurrent Consumer Spending now includes NFTs, but it doesn't necessarily mean NFTs are coming to games like GTA Online and NBA 2K.

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Take-Two recently posted a new 425 business combination disclosure SEC filing that updates shareholders and investors about the incoming merger with Zynga. The report contains vital information on shares, performance metrics, executive compensation, and an interesting new definition of Recurrent Consumer Spending, a blanket term that is used for microtransactions, subscriptions, virtual content, and DLC.

The new definition has been updated to include NFTs: "For the avoidance of doubt, Recurrent Consumer Spending may generally include, without limitation, the sale of virtual currency, add-on content, microtransactions, NFTs, game related subscriptions offered directly by the Company and/or its subsidiaries and similar items, but would not include full-game digital downloads."

Again, this does not mean Take-Two's premium games will be infused with NFTs. It's likely this addition references Zynga's ambitions to make play-to-earn games that use NFTs.

It's worth noting that WWE, who has teamed up with 2K Games with annualized sports games, has fully embraced NFTs. WWE chief brand officer Stephanie McMahon said: "We also continue to evaluate the metaverse, both walled garden environments that already exist as well as decentralized properties, look to hear more in the coming months."

Take-Two CEO Strauss Zelnick has commented on NFTs and is open to the idea, but only if it's "well regulated," provides value to customers, and is open and honest.

"It's certainly going to happen and NFTs will take us there. The question is how do you do it in a way that you don't hurt your consumers. I have zero interest in creating some exchange that solely buys and sells Dutch tulips in the 1600s. That's what we're doing now with NFTs and cryptocurrency.

"We know where all speculations land. Some people will have made a lot of money, gotten out in time, and they'll have turned that money into fiat currency and be very happy about it and a whole lot of people will have lost a lot of money.

"So we're not going to create an economy to enable or enhance a speculative activity, we would create an economy in service of making great entertainment experiences. Do I think NFTs could be in service to those goals and other game mechanics?

"Yes, however are we going to bleed over into gambling--well not unless we're regulated and honest about it, straightforward and even then I'm not sure it fits here but we're certainly not going to pretend a speculation is entertainment. Even if we could make money doing it."

Take-Two Interactive makes a considerable portion of its net revenues from Recurrent Consumer Spending. In Q3 FY22, for example, made 61% of its net revenues from RCS (see below).

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