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!
No Paul again, you know the drill.
Lately I’ve been ignoring all these articles just spewing out rumors day after day, hoping one of them will be right. First, IGN comes out with “Report: BOTH New Xbox and PS4 Will Be Shown At E3”. The very next day they wrote that an analyst said none of the consoles will be shown. And now yesterday, they came out with “Microsoft or Sony To Quit Console Race?”. Seriously guys, stop guessing and just wait for E3 for goodness sake.
And also I hate when they say an “analyst” says so. Oh, it must be true then because this guy gets paid to “analyze”.
@Rumor: Next Xbox tablet-based?: Even though the Wii-U will be sort of tablet-based, I think that Microsoft wouldn’t be able to pull it off and will just end up sucking.
hey guys… hope you can read this before recording the 247th!
@ps4 and 720: I hope they will be announced at this next e3 but i am ready for dissapointment. and yes, if the ps4 do not have some awesome co-funtionality with the vita, sony will be effectivelly killing the it
@diablo auction houses: not only south coreia: you guys talked about south coreia and russia, but you did forget about the prisoners in china gold farming in WoW who are obligated to do it (a few months old podcast). sad stuff
@SOPA: i am a brasilian gamer who has warned all american friends to help not passing this bill project because it will affect not only US but all the world. i like the machinima channel on youtube. SOPA would kill them
@before last week’s QOTW: my only handheld console is my trusty dark DS lite and i play on it since it lunched and still love it!!! SO SHINNY
my most played game of 2011 was CoD MW2 and BF3. i know.. the controversy…
the most surprisingly fun game was terraria most preciselly after patch 1.1.
most dissapointing is Black ops (not even 100h of gametime according to steam)
LOVE YOU GUYS, KEEP IT UP!!!
I’ve heard happier versions of Jonah before.
@Gaming Flashback:
Ha ha ha 🙂
The game was mentioned before, but Jordan made this particular flashback entertaining. The other 9 games? Please make a list.
@Fallout MMO rights belong to Bethesda as Interplay settles
Well, I guess Interplay got what it aimed to get. Jonah, it’s not the ‘wrong people won’. When you sell your IP, you won’t be able to make games on it. They should have known that before selling out to Bethesda.
Yes, they had some provisions in the contract allowing them to use the name for an MMO. That’s just not enough though. Interplay should have known better.
@ Next Xbox tablet-based?
No. They want to use PC-like hardware, so that they don’t have to worry too much about software. Plus, the more components (tablet, base station etc etc) the more expensive. So, no.
They will make it more slim, I suppose. Heck, even add a touch screen front panel. But that’s it.
@Diablo III release held due to South Korea (from GameFront)
Erm … yeah, I guess it a bit more difficult to foresee all legal difficulties, especially when you need to keep an eye on all the countries you want to ship …
@QOTW – hardware specs, as asked by your reader:
My ‘modern’ machine is a single core Sempron 3000+, 1.5 GB RAM, ATI Radeon 4650. 🙂 Pretty ancient.