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!
Launch Day Xbox
… how can being nude drive a podcast’s ratings up? Now, if you were to be doing a videocast … now that’s something.
@Electronic Arts responds to expiring Online Pass:
Oh boy 🙂 … this seems to point out some serious issues at EA. I mean it feels like they automated a little bit too much of their systems.
@Divided memory pool causes lag for Skyrim PS3
The total is the same (256 + 256 versus 512), the reason of the split is not financial. It is technological/design.
@Skyrim Creation Kit landing in January
Hmm, Steam Workshop … it’ll most likely kill the other mod sites. Not in a year, not in 3. Maybe in 4 though.
@QOTW: none. When we go on vacation (1) we don’t go by car, so there is not enough room in the luggage to squeeze in a console, and (2), you don’t really need to go someplace else in order to sit in a room in front of the TV to play games.
“… how can being nude drive a podcast’s ratings up?”
That was the joke, just like a ventriloquist on the radio.
I would really like to see how this South Park RPG is going to turn out, but I’m not getting my hopes up one little bit.
Well seeing that there’s nothing in the news I want to discuss, I tried to leave you an iTunes comment, but apparently I need to give them my credit card number to create an iTunes account. -.-
Anyway, QOTW: No. Can you please come up with better questions of the week that can’t be answered simply with yes or no? =)
And Paul, you miss so many podcasts it’s not even funny anymore. Consider this as official hate mail.
dude paul is gone again , what the hell paul skipping podcast is getting more serious now, we need a good reason when you come back. I guess that’s my first hate mail..
@south park the game .
Wew I didn’t see that coming .ill probably w8 for the trailer or gameplay but I won’t buy the game coz I hate southpark and their stupid animation
@qotw whaaaaatttt this is stupid bringing a console whaaattt impossible good luck on carrying a big bulky system on your way to a resort..
I haven’t been downloading your podcast because of the tests its the first day of test and I’m already tired.
I just started listening. Didn’t know Jordan was from Oregon! I’m originally from Roseburg/Eugene area and moved to Cleveland for school/work now. Great podcast and can’t wait to hear more.
Thanks Justin! I grew up in Eugene and now I live and work just outside of Portland (Clackamas and Beaverton respectively…)
I went to school at UO before heading to the Midwest and have family in Beaverton. Listening to your latest show now. Great stuff!