EA and Take-Two Stock Falls Fast

It’s official, EA has given up their talks with Take-Two and, as a result, the stock of both companies is falling like a stone. While gamers may cheer knowing the Grand Theft Auto and 2K Sports product lines will continue to compete with EA products, share holders are doing a WTF?

Take-Two has had its share of financial difficulties, but nothing shakes up a stock more than a break in discussions when the words acquisition have been spoken. It causes uncertainty and lack of understanding on the part of the game industry and share holders. EA’s stock dropped 2.7% upon opening this morning but has begun to stablize as it’s clear EA isn’t in any financial peril from this breakup in discussion.

Take-Two’s stock, however, is in epic free fall with a 25% decline since the discussions ended. One theory is that, “is taking a huge beating as everyone and their mother tries desperately to sell the shares the figured EA was going to to buy.” (kotaku)

As the game industry gets more competitive, builds bigger bank-roll and becomes a staple entertainment icon there is always more business savvy people getting into the game trying to make a fast buck. In this case, the shareholders obviously aren’t pushing for Take-Two’s future decisions or product launches — this is the reaction of business folks trying to make money.

There is huge risk with block buster 100-million dollar titles and all the crazy hype involved with some of the biggest games in history. They break sales records, smoke box-office numbers and bring new gamers into the industry but it’s all at risk when money gets involved. One bad move and a company making a title like GTA can find themselves in financial peril.

With risk comes reward, but failure is always sneaking up around the corner so watch out!

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Personally, we’d love to see a Spring/Summer release time frame to give us something to fill the void, but we’re sure Activision’s marketing team has plans revolving around money than a few gamers personal preferences. Regardless to the launch time we’re at least privvy to the knowledge that it’s coming next year.

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Microsoft has come out and validated some earlier rumors about Xbox 360 Avatar’s and their 3D dashboard design. Apparently, this is to build more of a community and bring a bit of the Mii-like influence from the Nintendo Wii to the 360 hardware.

It seems Microsoft is taking some of the concepts from the Nintendo Wii which were poorly implemented due to the lack of any real network community and bring them to live with a more integrated useful system. This proves Nintendo was on the right track but shows off their lack of integration and fear of bringing people together.

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Nintendo’s cute little idea of Mii’s and sharing them with friends was fantastic, a great bullet list feature, but rather useless. Typing in friends codes gets old way too fast and there really isn’t anyway to vocally chat with people on your friends list anyway, so who cares?

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