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!
Hi guys.
Thanks for this (and the few last) episode(s). I was very busy the last weeks, so i was not able to write a comment. Sorry for that! You deserve listener feedback 🙂
Regarding Telltale: In my opinion this is very unfair to treat the employees like that. I am happy, that something like that is not possible in germany, we got special “insurance” for such a situation. But in addition it is sad, because i liked telltale and the games they made 🙁
To our neighbours in the swiss: this is such a stupid move, and i have read this as well. Your comment, that i dont want to fight for animal right by thrwoing kittys at an animal shelter perfectly describes how stupid this protest action was.
Regaridng the Tetris topic, i played a lot of Lumines and i love the game for it´s simplicity (like Tetris). Such games you are able to play for half an hour and dont have to remember any story or complicated moves. Most of the newer games, you need to know every button on the joypad, have hours of storytelling and complex storylines … i dont judge this, but these games are no games you are able to play for some minutes.
To the question of the week: As already mentioned in the episode, i would love to see another Back to the future Telltame game 🙂 I think i already mentioned it once, but i am a real BTTF fanatic (my right leg is completly tattooed with BTTF).
Last but not least: TJ, congratulations to your wedding! I wish you will have a beatiful marriage and will stay together forever!
Greetings from germany and have a nice week.
Ralf