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!
Don’t feel bad guys, I listen every week. Even though its a bit hit/miss when one of you starts on a rant it’s still a good listen and a good place to get in depth gaming news 🙂
I’ll try to keep this one more brief then my last post, hopefully bullet pointing will help.
* I’m sorry to hear about your foot, I don’t know what could do that but I guess the one silver lining is you can say you will be a Cyborg now or training up to be the Six Million Dollar man.
* The Bobba Fett game: All I can say is Ouch, that would have made many a SW fan happy. I am in the camp of “meh” about Bobba Fett, I agree with Jordan’s assessment on him.
* Dying Light: I certainly hope that it isn’t another DI, I found that game to be boring very quickly. Just the unending swarm of Zombies can get tedious.
* Watch Dogs: If it requires the install, might as well get it for PC.
* This episode pretty much confirmed my decision to stick with PC and get 3ds for the family to play together. If Atari and Sega can survive on software sales so can Nintendo. I feel that Nintendo has been behind the hardware race really since N64.
* It just seems like a lack of foresight to try to make their previous libraries available on PSN (and same with Microsoft) If they make more money on software then they are losing money from this potential customer that wants to buy games they refuse to have on digital stores. I end up having to buy PC versions or emulate them on PC.
Okay I think I managed to keep that shorter, great episode guys lots of laughs and I told Dan to write you.
Oh and the guy with “yo-yo” weapon was Rygar. he has one of the best themes ever.
I considered using only consonants to shorten the post but then I decided to simply write less 😉
* Shout out to Red Letter Media. I love those guys. Mr. Plinkett reviews are awesome and their other shows – Half in the Bag and Best of the Worst are very entertaining.
* Shout out to Dying Light – Polish guys know how to develop great games – remember Robbo?
* Anti-shout out to Ubisoft – at least I’m getting that 1TB drive for the PS4. Maybe it will be enough for Watch Dogs. I’m really looking forward to that game.
http://www.gametrailers.com/side-mission/63162/gabriel-knight-returns-interview-with-jane-jensen
Jane Jensen is getting the license to remake the GK1 game Sins of the Fathers. According to that article it’s because of all the adventure games being crowd funded on Kickstarter. The Adventure series of GK may be getting new life if this remake does well. I’m excited not just for this game but for the fact that Kickstarter games seem to be making a difference now in giving Adventure genre another chance.