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!
@Street Fighter X Tekken DLC will never come to Xbox 360
I get Dan’s point, placing the DLC on the disk is like dangling a carrot in front. And yes, since the DLC is already distributed, then why not get some money out of it?
@Vivendi finding few buyers for Activision-Blizzard
Thing is, the game industry is quite tough. Spending N billions to buy a piece of it is quite a risky bet. Miss-manage it and you’re never going to recover the investment. So I can understand why nobody is rushing to buy.
As from the potential buyers point of view, Vivendi desperately needs money. Play your cards right and you can get Activision-Blizzard at a nice discount đ
@âWouldnât be surprisedâ if more aggressive PC games start to appear
Hitting a Diablo 3 home run: good luck. It’s hard to do for any platform, not just the PC.
Erm, no cycle detected on my end, always KB and mouse here.
@Grand Theft Auto V will support planes and jets, wonât have beta test
Not a fan. Loved Mafia though.
@ Question of the Week.
I was going to say ‘No’ initially, but I saw the hardware specs, so it’s a ‘maybe yes’ now. Android is hackable, it has a USB port so ….
Gearbox: âWouldnât be surprisedâ if more aggressive PC games start to appear: For the record, I got excited as soon as I heard you say that Borderlands 2 would have drag-and-drop inventory, because Borderlands’ huge number of items and weapons makes it a pain to navigate through the inventory with the consolish setup it had. Other than that, all I got that Gearbox was placing a huge bet on the PC, and telling everyone how great it will be to be a PC gamer.
@OUYA: Good for them for tons of funds, but this can also be the point where a Kickstarter goes horribly wrong. Seriously, from what I understand they pretty much said “we’re going to try these bunch of different ideas together and see if they stick”. Let’s hope they’re successful and manage to create a great platform.
@QOTW: Probably not. I barely play Android games, and I doubt any huge games will be on the system before anyone knows how successful it will be.
And yes, Gearbox are looking for headlines: http://www.ign.com/articles/2012/07/24/randy-pitchford-plagiarism-is-rife-in-the-industry