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!
@Black&White
It was the first PC game I played properly. I was surprised at how complex the game was compared to console games. I enjoyed it but it got tedious real quick. One thing that annoyed me about that game was the difference in effort you had to put to be good or bad. If you wanted to be good, you had to feed the villagers, build them houses, protect them and look for their sheep. Being bad was so much easier. Just pick up a bunch of kids and chuck them in the sea. And their parents. And animals. Just chuck everything in the see. That took care of everything and you were on your way to becoming an Elite Omnipotent Asshole.
@Steambox
I for one would love to have a console that runs steam games. For many out there high system requirements are a barrier to PC games. And they just keep getting higher and higher each year. I bet Johna’s new rig already can’t run the latest releases on highest specs. And I find buying PC games to run them in shitty resolution not worth my money. The Steambox would be a good thing. A gaming dedicated PC with decent specs and a powerful cooling system for a sensible price. Although the idea does sound too ambitious. PC games are not uniform. Fitting them all on one hardware if bound to have issues.
@World of Rockcraft
I think they will do it. But for next gen hardware. Wouldn’t want them to make an MMO out of it because I don’t want some twats ruining my criminal empire.
@QOTW
I am with Paul on this one. I get deep into a single-player game storyline. I read books in Elder Scrolls games. I talk to every villager in Final Fantasy games. I do every available side quest in Mass Effect. But when it comes to MMOs, I tend to avoid stories. Mostly because they are crap. 90% are set in a medieval setting where some Dark Lord has been revived and now there is like 3 million warriors that try to stop him. But you are the specialiest one here. Also, because I only play MMOs with friends and it’s difficult to read stuff when others are not interested in the story. I am really into the DC Universe story but that’s because I already have a large knowledge of DC Comics.