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!
According to the press release:
Wow Paul really let loose with that last episode. I agree with him that I’m tired of the whole Gamergate drama.
I am hesitant to get into the whole SJW issue since it’s a sensitive topic. Suffice to say that they generally are a oversensitive, zealous and fanatical crusaders looking for a fight where there is none or “Making a mountain out of a mole hill”.
A good example that doesn’t relate to Gamergate is the recent landing of a satellite on a comet by Dr. Matt Taylor. Not only did he mange the amazing task of getting the satellite to hit it’s target but we have amazing scientific data from that satellite. The next best thing to finding actual life forms, we found molecules, building blocks of life. We could be able to soon prove that life exists out in space, but what do we focus on? His fucking shirt. He’s wearing a shirt, with women (not naked) on it, made by his female friend as a birthday present, and he wore it to show his appreciation. Instead he was bullied into thinking that his shirt was a bigger grievous sin then his history making accomplishment.
So way to go SJW you’ve claimed another victory and shown why Alien life shouldn’t visit our planet.
@QotW; I’m not sure when the first digital purchase I made was. Probably going to go with the Wii and buying old NES games on it. Then Minecraft, PSn games, Xbox and Steam/GoG on computer. It started as a trickle and turned into a landslide of just getting Digital only. I love not having to worry about physical media getting damaged or lost.