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!
@Super Pitfall
Erm, the youtube video didn’t look THAT bad …
@“Super-slim” PS3 will be a no-show at Gamescom
Meh … not a console user, don’t plan to buy one, not a PS3 at least.
@UbiSoft claims lack of new consoles penalizes creativity
… again with the lack of new consoles? Enough with blaming the hardware manufacturers for the bad choices developers/publishers make. The producers/developers are not being held at gunpoint to release only Call of Duty, it is their damned choice >:(.
Not talking about indies? Why not? How come their creativity isn’t penalized? Or is it that they simply take the plunge?
Rage tanked, yes. Still, kudos to id for at least trying, even if they only got themselves a new game engine.
@Diablo III ‘God mode’ exploit for Wizard discovered
I’m just going to stay away from Blizzard, until they get their act together. Always online DRM, single player game on an MMO platform, really? Really?!
@EA: Nintendo “on track to become primarily a software company”
Yep, always funny reading comments of one company rep. setting a road map for another company …
No question of the week from me.
Gez I think that Blizzard needs to get their act together. They had problems during the beta that weren’t dealt with. But maybe it’s a marketing scam? draw attention to the company just before they are set to release a new WOW expansion?
@Super-slim PS3
Never cared how slim my console is. It’s not a PC. It will run the same games at the same rate as a fat console. Regarding PS3 sitting on the shelves, that’s to be expected. Out of all the consoles currently available (at least in UK) PS3 is still the priciest. Since there is a lack of exclusives nowadays, there is not much difference between PS3 and Xbox 360. Xbox is just cheaper and has Kinect.
@Ubisoft and penalised creativity
I am sick and tired of hearing this argument. We know this console generation overstayed it’s welcome. Why does Ubisoft have to state the obvious that has been stated many times before? Do they want us to storm Microsoft headquarters and demand a new Xbox? Do they think there will be a new Xbox if they tell everyone how bad the industry is feeling? Ubisfot. Sit down. Shut up. Bake Assassin’s Creed 3.
Diablo III “God mode”
You will be surprised at how many glitches/ exploits can pop up in well tested games. Cast yourselves back to the Modern Warfare 2 Javelin glitch. It was discovered a few years after the game was played by millions of people for trillions of hours.
@Nintendo going software only
This argument splits me down the middle. EA has a point. I own a 3DS. I am regretting it. I could have spent my money on more worthwhile things. Like illegal drugs, alcohol and prostitutes. And the WiiU looks dead in the water already. So close to launch and still no price. Most announced titles are games you can play on the Xbox NOW. I hope that Nintendo will pull itself together. But they are led by Japanese old men who seem to live by bushido code and would rather kill their company then give up their franchise to business.
This is all I have this week.
@QOTW: When was the first time that you really got into video games?