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!
Is Blu-ray dead?
@ Black Friday 2012
I was pretty disappointed in how “Black Friday” was handled in Romania. Plenty of retailers increased the price a week before, so that they could do a 40% slash to get the price back to the old value.
@Nintendo Power’s last issue released
It also depends how many people want it. Here’s an example: our major cable provider decided to not renew the contract it had with Discovery Channel. Why? Because just 0.9% of the people watched it.
How many people read “Nintendo Power”?
@Blizzard acquired ‘Project Blackstone‘ domain
It could be a preventive buy, I guess. Still, not really hyped about it, Blizzard lost me since always-online DRM; last game I played from them was Warcraft III and Frozen Throne.
@Dead Island: Riptide banned in Germany
Funny though, there are plenty of games (not just Gears of War) where players blow other human-like character to bits, and those are still available in Germany.
But hey, what do I know, perhaps the baddies in those games bleed green goo …
@QOTW: No.
Not interested to comment on any of the news articles, I just came to ask: “Guess who has two thumbs and got the Wii U before Paul did?”. I did.
@QOTW: Never
Just found out about this podcast and was amused that there was a topic discussed, I just held a speech on in school. Censoring, banning etc. in Germany.
The USK is all right, they just rate the games like any other institue that rates games. The problem is the BPjM (the young protection thing you translated). They decide what gets banned and lands on the index etc. They’re not only after games, but after media in general. They just recently banned Steel Panther’s 1 year old album “Balls Out” for no reason given. Wrote them a mail (respectful, of course) and got no answer whatsoever. So did the German Metal Hammer-magazine. Same answer.
They ban whatever they want to. Sometimes there’s no system behind it. Dishonored came out here completely uncensored, this means I, as Corvo, can decapitate enemies and throw their heads around. Kinda humiliating to the corpse, isn’t it?
If anyone is interested in how cuts on games look like, I recommend http://www.schnittberichte.com
especially the Bulletstorm one.
QOTW: Never.
@QOTW:
Yeah… Nintendo World yes, Nintendo Power NO.
Nintendo World had the “Approved By Nintendo” seal, so, i bought them for a couple of years…