Strauss Zelnick has suggested introducing a new pricing system for video games.

The 66-year-old managing director of Take-Two Interactive - the video gaming company that owns Rockstar Games and 2K - has suggested that the pricing of video games could be overhauled.

Speaking to investors, Strauss explained: "In terms of our pricing for any entertainment property, basically the algorithm is the value of the expected entertainment usage, which is to say the per hour value times the number of expected hours plus the terminal value that's perceived by the customer in ownership, if the title is owned rather than rented or subscribed to."

Strauss also claimed that his company offers games at very good, competitive prices.

Strauss observed that the "value of the engagement is very high".

The businessman - who has previously studied at Harvard Business School and Harvard Law School - explained: "By that standard our prices are still very, very low, because we offer many hours of engagement, the value of the engagement is very high. So I think the industry as a whole offers a terrific price to value opportunity for consumers."

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