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!
The World of Warcraft community can be harsh if you don’t know what you’re doing, which is one reason why I haven’t played it for years now; it requires specific actions for certain events during raids for example, and you are often required to watch videos beforehand and have voice chat for choreography among your guild. Another reason for my absence from WoW is addition of unprecedented content requiring time to learn new functions, and it can take away from core gameplay, in my opinion. A lot of people like “Vanilla” WoW.
While all FPS games are point and click based, Counter-Strike for example requires strategies for map positions except pubs. I recall trying to run around maps not obeying orders back when I was in a clan/guild, while the leader was barking at me.
I’m anticipating Doom’s plain Deathmatch mode, unlike Team Deathmatch, so that I can be solo, but we don’t know when it’ll be released…