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!
I wrote a comment to this podcast instead of playing GTA 5. I should probably get the VGRT reader’s award or something.
@EA CEO
I am in the camp who hates EA by default. I still bear a grudge for them ruining Oddworld: Stranger’s Wrath and Marvel Nemesis. It will never change regardless of who runs it. But I do enjoy Battlefield and am looking forward to Battlefront so I am glad that some guy got replaced by another guy and I hope he will take the company in a bold new direction out of the shit pit it’s in.
@Sega buys Atlus
Never heard of Atlus. But I don’t expect Sega to get back in the console race. At the moment the competition is cutthroat in the market. Even an established brand like Nintendo can’t survive. Maybe Sega wants to expand it’s TV add on business. They release little boxes that have bunch of classic Sega games and are plugged into your TV. Either that or they want more MMOs.
@To mediocricity and below
Star Trek had a reboot and I didn’t even notice. I always thought Star Trek needed a reboot. It’s a very long running franchise. But I would prefer a condensed contemporary version of the original series. Not a movie where there is more shooting then actual trecking.
@Your daddie’s credit card can no longer beat Diablo
Just recently I started playing the second Diablo with a friend. I love it. Fast paced combat. Many locations. And loadsa loot. I also played the Xbox 360 demo and it was good. But not as good as 2. Combat was way to slow. On the account of auction house, I completely do not care if it is there or not. I am the type who can spend hours grinding monsters to get a good item (Monster Hunter eats my life)
@QOTW
I will answer last weeks question if it’s all the same. I live by the Russian rule of: “if it ain’t broke -don’t fix it”. I got a DSi because my original DS was falling apart. My Xbox 360 crashes evey 2 hours but I won’t get a new one as I don’t tend to play the same game for more than 2 hours anyway. I only get new hardware if i don’t already have it.
First I wanted to wish Jordan a speedy recovery from his hospital stay, I hope it wasn’t too serious.
It was nice to hear Dan on the show again!
@EA Change: Just googling to see the long history of game series ruined they have built a reputation that may be irreparable at this point. I know I’ll be getting Sims 4 for my wife and this change I hope does bring better games. The reputation is however a well earned one.
@Diablo Auction house: I think the more games that abandon the Pay to Win mechanic the better for quality games.
I’d like to end this with a question to you guys. I’m trying to figure out what is the best console for a family to play on and so far that does seem to be the Nintendo franchise. Xbox and PS seem very heavily focused on FPS and other 3D games. My wife get’s motion sickness from 3d gaming and can only play side scrollers and the like. Also I heard you saying how split screen is dead so I’m wondering what do you do when you have people that want to play the same game on the same console at the same tv?