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!
Despite the announced shutdown of Star Wars: Galaxies and the approaching new Star Wars-based MMO Star Wars: The Old Republic, loyal subscribers don’t want Galaxies to end. They’ve begun a petition to
Been a long time since I posted last. Bloody university getting in the way of life. Glad to hear that you guys are now part of the next gen. My opportunity has fallen through, as the Game store that I pre-ordered my console from tried to bait-and-switch me twice for a more expensive PS4 bundle which I did not want. That and I withdrew my pre-order as all the games I wanted to play have been deferred till next year. Probably will get it when Elder Scrols comes out.
@EA
Ok I will admit it. Humble bundle was a stroke of genius. EA tried competing with Steam for years via Origin with poor results. But Humble Bundle blew Steam clear out of the water. They may not be making money with this, but Humble Bundle is a brilliant positive publicity generation tool. That is something that EA needs more than money.
@The name is Bond. James Bond. A level 72 Dark Elf Warlock in service of Her Majesty the Queen.
I can see the point of this. Gamers are impressionable people, mostly in their teens and early adult years. They are perfect targets for criminals. If you are fresh-out-of college/university unemployed, your opinions can be easily swayed. Maybe that’s what the intelligence agencies are looking for.
@Neverwdning Story
The media industry rule of thumb is that a franchise should finish with a number 3. Anything that goes beyond that is just dragging the series out. Unless there is a reasonable time gap between the releases (i.e Final Fantasy, Halo).
Assasin’s Creed is now planing it’s 7th game. I am currently playing the 3rd one. Since I don’t do series marathons I will probably catch up to the series in 2020. That is rather daunting. Maybe they should really bring Prince if Persia back…
@Disney’s Indiana Wars: Raiders of the Lost Ark Strike Back. Excelsior edition.
To be honest, I think it is a good thing that Disney is sponging up all the abandoned IPs. Not only do they inject it with money, they do a good job marketing it as well. Indiana was idle for quite some time. He should be out of retirement kicking Nazi ass about now.
PS: I remember Disney wanted to acquire Mortal Kombat. And now imagine a 12+ Mortal Kombat experience. The horror…