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!
@Ubisoft polling gamers for next Assassin’s Creed setting: I would love it if they used multiple settings for Assassin’s Creed 3.
@Newell: Piracy is “almost always a service problem” and not price, DRM agitates: I agree with him completely, even though I think game prices are a little bit steep for me at my age.
@Christwire makes mock petition asking Pres. Obama ban Skyrim: Trolls will be trolls. This is just silly and it’s sad that it even got any attention.
@Microsoft refunds victims of Marketplace phishing scam: I’m really pleased that they seem to be taking the Valve route, to be nice to the customers instead of treating them like insignificant numbers.
@QOTW: I won’t buy holiday gifts for anyone. Period.
@”Badass”: Are you kidding me? This looks to me like a broken forum filter. And why oh why do they still use a single database for forum band AND account bans?
@Piracy is “almost always a service problem”:
Yes and no. Yes, a bad service will lead to higher piracy rate. Still, 60 USD is too high for Romania , so price-point triggered piracy still exists, at least in my country.
And Newel is not entirely honest there: when launching in Russia, besides doing it at the same time with the rest of the world, they also reduce the price of the games: around 20 USD versus 60 USD in the rest of the world.
@mock petition asking Pres. Obama ban Skyrim:
Paul, they made you read this because the petition is funny.
And the truth is that politicians don’t really give a crap.
@Holiday shopping madness:
Woohaa !! 🙂 Wait … doesn’t this qualify as an assault? Normally she should be charged …
This is pretty sick … you can get discounts at other times, no really need crowd up the shops during one day.
@Microsoft refunds victims of Marketplace phishing scam:
Microsoft went above what was required from them. I mean you cannot blame Microsoft from whatever clicks you made.
@QOTW: … yes. I guess it says a lot about myself 😛