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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Are you one of those that have a diskless (or low flash disk) based Xbox 360? We’ve been wondering, ourselves, what Microsoft was going to do to “fix” the fact that the upcoming Fall Update is going to require 128MB of disk space.

It seems they’re going to hand you either a 512MB memory card or a 20GB Hard Disk for the price of $20.00. If you’ve got the $20.00, this would be the best route to go as 20GB is way more than a free 512MB flash card. You’ll be hard up to find 20GB anywhere for a buck a gigabyte – definitely a good deal.

Unfortunately, tonights gaming podcast will still have us pondering the news as we’ve already recorded it and asked the question “what are they going to do?” If you want to see if your console qualifies for the storage upgrade, head to Microsoft’s website with your serial number and console ID handy.

(Thanks, GameStooge)

EGM closed, 1-UP Purchased, We Wish Them Well!EGM closed, 1-UP Purchased, We Wish Them Well!

When I was a little boy gamer I would spend a bit of my allowance on Electronic Gaming Monthly a great little gaming magazine. Unfortunately, young gamers will never understand what the industry was like twenty years ago. In a time before the Internet, the only place to get gaming news for a young kid was a glossy magazine. Today, EGM closes its doors and we’re losing a historic piece of gaming history.

Granted, there were other glossy magazines prized by young boys too, but we were old enough to purchase Electronic Gaming Monthly, now known as EGM by the hip and cool. Although EGM was founded in 1989, many adults between the age of 29 and 35 probably spent their youth flipping through the pages reading the reviews and editorials.

The days of the magazine are drawing to an end for many industries, with video game websites covering everything from truly hardcore to highly niche, we all demand our information as soon as possible. If a company like Ziff Davis is selling its properties, we want to know the minute it is announced, when 1UP is purchased by UGO we want to know the minute the ink dries. Why? Because we can.

January 2009 marks the last issue of Electronic Gaming Monthly. After Hearst Corporation (owner of UGO) purchased 1UP from Ziff Davis it was announced that EGM would be seeing its last issue. Sure, there was a chance this would occur without the acquisition as well but the sadness wouldn’t be any different. We’re sure the staff will find a great home writing for another publication or in the online world, but it is sad just the same.

Along with the sad news of EGM closing, we’ve heard a number of folks at 1UP have also been effected by Hearst Corporations purchase of 1UP which has many people out of a job during tough economic times. There has been rumor the 1UP podcasts being ditched as well, but we have heard nothing official yet (please comment with official stories if you hear).

Of course, 1UP is “officially” rejoicing at the news but we know this is part of the “smoke and mirrors” that is an acquisition. A few, now former, 1UP folks have been using twitter and game forums to voice their own “opinions” of the purchase.

This is a rough economic time for many people, printed magazines, online publications and others. The only shining light is knowing many of these individuals will find new places to call home or start brand new online publications to compete against their old company. Talent will not go restricted, they will no doubt group together to form new aged publications to show off why the big boys are flailing in the dark.

We wish them all well in their efforts to find success.