Battle of the Mega Powers: EA Wants Take-Two

We’re already looking at the results of an Activision Vivendi union and now Electronic Arts is slowly working towards taking over Take-Two. Activision Blizzard is larger than that of EA but would the Take-Two buy-out grow EA into the number one publisher once again?

For gamers, it’s changing the map of the industry. We grew up with many of these seemingly big companies but their all clamoring together to make the next big mega-power. While they struggle for ultimate domination we, the gamers, are going to either benefit from the competition or become victims, or perhaps a little of both.

Let’s assume EA and Take-Two form one entity, similar to the the Destructicons forming “Devastator,” they can reign hell upon the earth and anyone under their mighty fist shall perish! That might be a bit of an exaggeration but it’s safe to assume they’ll wield mighty power, more than ever before and their epic foe will be Activision Blizzard and, perhaps, Ubisoft. In a battle for sales and consumer acceptance the companies will be willing to out do each other at every step with huge funds at their disposal.

As a consumer, competition is a great way to produce innovation, technological advancements and excitement in the industry. These giant development houses are only this large because we’ve given them our hard earned money in return for entertaining video game titles. World of Warcraft is a major player in sucking money from our wallets in a consistent, addictive, manner while Guitar Hero explores new possibilities in music and rhythm gaming and controller accessories.

Electronic Arts and Take-Two would have to combine and push ground breaking changes in all their game franchises to compete. Grand Theft Auto must top their already huge, or, perhaps, release smaller games on the DS. Their sports franchises will go unhindered into the night as the best and only solution to your football desires. John Riccitiello, EA’s CEO, has already acknowledge the lack of excitement and creativity from the EA game library and plans to change it by expanding new intellectual properties and, recently, added a few “small” purchases to their list including BioWare and Pandemic.

While Activision has found a fairly new niche with Guitar Hero we’re waiting to see if EA can respond with their casual games division or with some other secret projects to entangle both gamers and non-gamers. In many ways, this is a bright side to the mergers and acquisitions because we’re all getting something new and creative as talent and ownership changes hands.

Unfortunately, large companies like this can help destroy any chance of small uprisings of new studios by purchasing all the shelve space in retail outlets as part of their ongoing power struggle to be number one. They’ll be able to relax on franchises that have been flat-lining over the years, we may see no progress in the Madden series when Take-Two cannot compete at all in the space while under the wing of EA.

Indy developers will find it harder to compete with block buster titles because game engines are all being taken “in house” by the larger firms because they’ve got so many internal development studios they will need consistent proprietary game engines to hold their edge against their mega competitors. This leaves the indy companies with huge licensing expenses from a larger firm or going with a lighter less stable alternative. A few rise to the occassion like GarageGames to relieve some of the pressure, but how long before they’re bought up?

Perhaps smaller studios with great tools will rise to meet the demands of the Indy developers but they may fall under the mighty dollar if an EA or Activision Blizzard buys them out to “steal” the technology for themselves (or stop others from gaining unwanted advantages.) These large companies will fight tooth and nail so they can gloat positive trends to their share holders and make deals with the devil to push stock value through the roof.

These large studios will be looking to improve year-over-year profits and value to keep growing in the industry. It will not be about the game anymore, but about the dollar. Of course, the managment structures behind the companies will have to hold up and work well together to avoid becoming the next Sierra.

You can only be a mega power for so long before something changes your future. Randy Savage never saw it coming when Hulk Hogan ruined their alliance with three massive leg drops.

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GTA IV: 46th Best-Selling Game In AugustGTA IV: 46th Best-Selling Game In August

Like a washed up superstar, Grand Theft Auto IV continues to drop in NPD figures. This Axl Rose of video games came on strong and sputtered out into oblivion with barely a notice, leaving the spotlight and all hype behind it. This drastic fall may hurt any negotiations “behind closed doors” with Electronic Arts and their constant attempts to take over Take-Two.

Prior to the release of GTA IV we, in our gaming podcast, predicted a huge launch would up the anti against the bids on Take-Two from EA but things didn’t work out exactly as we expected. Although the game has sold 8.5-million units, it might not add any new bargaining power to the back door negotiations.

A game company is only as good as their games. A hit title which dies out quick helps financially guide the future of the company; technically the future isn’t so bright. With the title quickly falling off the top game sales charts we may never see it hit record sales figures to match that of smaller titles. Having one hot title every four years that “breaks records” for a week isn’t a strong weapon against a low bid from a larger publisher.

While EA may not have any record setting “one week” sales titles yet, they do have a consistently strong set of titles which stick on the charts for months with newer titles arriving to take their spot when they fade. The same can be said for a few other notable publishers, Activision and Ubisoft. To survive in the hot game industry, especially with market downturns, one must have a cycle of great games to publish throughout the year consistently year-over-year in order to provide evidence of their financial stability.

Assuming the bid won’t raise for GTA IV, where does that leave Take-Two? Perhaps Take-Two is better off under the umbrella of Electronic Arts after all. The waters are getting more hostile in the industry as companies compete for gamers attention with 100-million dollar titles and casual games and game consoles (read: Wii) start to build a whole new none-gamer-style momentum.

Is Take-Two better off under the EA brand?

Rhythm Gaming Saturation Point?Rhythm Gaming Saturation Point?

Rhythm Gaming is all the rage, or is it? Turns out Guitar Hero: World Tour didn’t meet or exceed the figures they hit with Guitar Hero III. Where GH3 brought in $115 million in the first week, GHWT brought in $67 million in the same time frame.

Why?

There are plenty of factors that could cut down the sales units, considering those that can purchase Guitar Hero World Tour don’t have to purchase additional instruments to play the game like they played GH3.

  • Rock Band 2: This game arrived before Guitar Hero 3 and folks went for this game instead because it was first to launch. Some gamers have to make a choice on which to purchase because they can’t buy both.
  • Hot Games: Although Rhythm gaming can be fun, a lot of great games are arriving this season so gamers have to make some big decisions.
  • Economics: The economy isn’t exactly thriving right now and retail outlets are already predicting less than stellar numbers.
  • Saturation: Since the original Guitar Hero game, we’ve had a number of titles from Activision including their Aerosmith edition and Harmonix pulling out Rock Band and Rock Band 2. There is talk of a Hendrix version and a Metallic release – how much is too much?

We know people love charts, so here is another to toss at you via Kotaku:

Guitar Hero World Tour Sales, via Kotaku

The break down from Guitar Hero 3 to World Tour is obvious, also apparent is the shift in console when buying into the rhythm gaming franchises. The Wii has started taking more market share, odd considering the DLC isn’t there, and the PS3 is showing its lackluster sales of the console by growing in proportion but not excelling to grab huge share (PS3 fanboys attack!). Sony kicked ass by taking control of the share using their PlayStation 2 with Guitar Hero 3, but has lost that lead for the World Tour.

Will these lower sales figure change the future roadmap for Activision in their Guitar Hero franchise or are they satisfied taking home $67 million in the first week of the launch. That is still a lot of money and probably doesn’t even consider any money they could (or will) potentially make on the World Tour hardware.

Luckily, the rhythm gaming content doesn’t get old with age, it just gets more classic. No doubt Guitar Hero World Tour will be landing in homes over the holidays and into 2009.

Retro FlashBack: DragonFire (Atari 2600)Retro FlashBack: DragonFire (Atari 2600)

Now here is another interesting video game for the Atari 2600, the game Dragon Fire consisted of two game screens, one which you ran across a bridge while fireballs were shot at you, you had to duck or jump over the fireball. This screen was a side-scroller style screen (although it doesn’t actually scroll), at the other end of the bridge was a castle door which you’d enter to get to the next screen.

The second screen was more classic “overhead but not really” screen where you ran around this black screen picking up treasures while a dragon at the bottom shot fire at you from below.

As the game increased in level jumping fireballs became more challenging (on the first screen) as you ran because they would come quicker, more often. The second screen would get very difficult very quickly as the dragon would increase in speed and fireball spitting. You could tell how hard the dragon would be as it would change colors from lighter to darker black as you progress stages.

When you finished collecting all the treasure an exit would pop up in the corner and you had to run to it without being burned by the fireballs, that dragon would turn from left to right nearly instantly too! Then, you’d jump into the exit and be back on the bridge again, but this time it was harder. You could die up to 7 times before the game was over (just to show you how hard it is, they gave you a bunch of lives).

The game was tough, frustrating, hard to replay because you were just so nervous and jittery from the last attempt. Graphics were “okay,” nothing to rave at but it was, after all, the 2600.

You can hear all we had to say about DragonFire for the Atari 2600 on Episode 79 of the TD Gaming Podcast!