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!
Hey guys great episode, lots to respond to, I agree with you Jonah on the perspective of those that way to hire people already working. It does make a person seem very disloyal but that doesn’t seem to be a valued thing anymore.
@Returns: I have no problem admitting to making bad choices so I don’t make up excuses either when returning something. Though most of the time it’s a faulty product for whatever reason. I think I’ve gotten myself to the point where I am very careful about impulse buying without ensuring I like or really need this. With Games I’m always trying to do the Demo or watch YouTube videos of a game, but I have had games bought that I wanted to return and now I even have some on my steam list. I may have to do some trading to clean that list up a bit.
@Gameplay versus Story: This seems a balancing act at times; there are games that had great story but painful gameplay (Legacy of Kain and Soul Reaver). Then games with great game mechanic but weird story like Eternal Sonata. It’s great when a game has both, I think story is the bitch as Paul said as so many a lot of times skip or ignore to get back to playing the game.
@Valve: I am glad they are doing this to help clean out some of the crap that seems to get through, in complete games and games that just should never have been started; I’m looking at goat Simulator there. I agree that you shouldn’t have to pay to beta test something. I do feel like this whole early access and beta testing is getting abused and allowing lazy game developing to happen. Beta testing is a skill set because you need people that are not only willing but actively look for ways to break a game or do things the game designers didn’t intend to happen.
@Sony getting hacked: On one hand I do want these companies to have better security for their customers but on the other it really isn’t right for hackers to be giving out password information either. I don’t trust these hackers motives either, and I am experiencing similar password changing/managing exhaustion as you guys as well.
http://www.geek.com/news/sony-just-got-hacked-doxxed-and-shut-down-1610274/
(I like the idea of a Pastabin, let’s do a Kickstarter for it)
@Game Devaluation: I wonder if Beyond Earth is considered a AAA game or not, since I got it digitally it was $54, nowhere near 35 much less 22. I think they’ve only recently been put on sale for lower prices for Black Friday, and of course it’s priced differently US, UK, EU and Aus all have different prices for said game. I do expect digital games to be cheaper than physical copies of the game. This also reminds me of an article where we maybe don’t value games as much as we used to due to very cheap prices and how easy it is to have a collection of a 100 games on your steam list and you’ve maybe only played a handful. That when we were children it was much harder to get a game, often you’d only have one and you played it bugs and all because that was your game. I’ve gotten a few of these bundled games and I have to admit I don’t feel the huge desire to play them much if at all. I don’t feel that same desire I did as a child when I would do extra chores and save up money just to buy ONE game.
@QotW: I would have to say my favorite Game based Cartoon would be “Where in the World is Carmen Sandiego”. I loved that she wasn’t a typical Villain, she seemed to encourage the kids to try and catch her and you were learning stuff about the world as well as being entertained. I also hated the way they depicted Simon in Captain N, I think I found the “Icky” Pit and “Mega” to everything very annoying, it could be that I was slightly older at the time 8-10 so I think that act was wearing thin. I did love the Zelda Cartoon but vote goes to Carmen for helping me learn more about the world around me.