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!
Recorded on 16th – that’s before posting the comment on ‘Computer specs’. Still not the happiest Jonah.
@Mass Effect 3 is Origin-only
It’s a pretty aggressive move to push for Origin. I’m sure they will have higher revenues if they would sell on both Steam and Origin.
I think that it will take a bit until every Steam user will have an Origin account, so, at least on short term, I see EA taking a bit of a hit.
Paul, I liked your point on this one.
@EA passed $1B in digital sales in 2011
I also have an opinion that a good chunk came from Steam. Because yes, EA also sold games on Steam in 2011.
Jordan, I like game boxes as well. And Paul, I also loaded games on a Z80 computer from an audio cassette.
Jonah, the games online cost (at launch at least) exactly as much as the ones from the retail store. Why is that? If I’m to pay the same price, I’d rather get the boxed copy, thank you very much.
@Gaikai: Sony or Microsoft won’t have next-gen console
MSFT has it a bit easy: stick to the PC-like hardware, that evolved from XBox360 until now.
As for Sony, don’t know, don’t care.
🙂 Jonah, loved your input 🙂
@SOPA:
Not touching it, it has been discussed to death. Every person who listens to podcasts is aware about SOPA.
@Thief 4 rumored to have multiplayer
All engines do light calculations on all entities now, in order to have a realistic rendering. As long as there is a way to access the results of that computation, any engine should do ok.
@QOTW:
I would say that my first MP game I played was “Battle City” (called “Tanks 1990” on the NES clone we had). A lot of other games followed, like Chip & Dales Rescue Rangers 1 & 2, Monster In My Pocket and a bunch of others.
Favorite game? Man … dunno … maybe Medal of Honor – Allied Assault, close to it would be AvP2. That doesn’t rule out Battle City or Teenage Mutant Ninja Turtles – Tournament Fighters. Too tough to pick one favorite.
@Mass Effect 3 as Origin exclusive
I think EA move to get its games as Origin exclusives (for digital distribution) will be a mistake on the long run. Steam already has a huge player base, and some players like me are not willing to have their games scattered in different accounts of different distributors.
PS: I also think that digital versions of games should be a bit cheaper than the boxed retail versions. Some MMO’s did this in the past, where you could buy a boxed version for a few more $$.
@SOPA I’ve already said my piece on it, but it was really interesting to see the blackout on some sites. Webupd8.org for instance, had a huge part of the words in its texts censored when the user visited the website for the first time during the day.
@QOTW:
First game of multiplayer was probably Kings of the Beach for the pc, or maybe some spectrum game before that. But the first that really made me love multiplayer was Quake2, which was also my first multiplayer online experience.
After that I was amazed with the MMORPG experience, firstly with Project Entropia, as I’ve never seen such a complex universe before, and after that I tried a few MMORPGs . Nowadays I tend to prefer the massive online games to normal games with multiplayer, although I would have loved Skyrim to come with Coop.
By the drill, Paul, I don’t mean instant hate mail. It just means that I will just like the podcast 50% less.
@Bioware confirms Mass Effect 3 is Origin-only: Why? I pre-ordered Mass Effect 3 on PC, but I really hate Origin. Oh well, I’ll have to live with it, but I really hope that the online multiplayer won’t be too bad with Origin.
@Electronic Arts passed $1B in digital sales in 2011: I’ve already said that I like my games in boxes, for the very same reasons you mentioned. And also, I’m paying extra for the box, CD and display? Bullshit! Deus Ex: Human Revolution pre-ordered was €34.45 from my online retailer. 5 months later, it is still €50 on Steam and only €16 from my online retailer. That’s €34 less for getting the game in the box. Digital distribution? No thanks.
@Gaikai: Sony or Microsoft won’t have next-gen console: And they are guessing once again. Also, I think that it’s a little bit too early for cloud gaming to catch on and appeal to the masses.
@“What was the first multiplayer gaming you ever enjoyed?”: I would have to say Heli Attack 3 on Miniclip. It technically isn’t a multiplayer, but my brother would shoot using the mouse and I would jump around the bullets. My computer was pretty crap back then and we had no consoles so flash games were pretty much all that I played.
@mass eff 3: in order to play the single player game is required a constant flow of an eletric courrent trough your computer or console. lol
The Battlelog is actually a good and innovative idea, the bad idea is Origin that requires a relativelly high portion of the PC’s processing power that could be used to help me run BF3 in high specs. That is what i like in Paul: he votes with his wallet, and stand for his principles no matter what. Damn you steam for not having BF3 and ME3 T.T.
What is wrong with CD’s? I still have my total annihilation in 2 epic CD-rom’s. INSTALLING THEM NAO
Dear Jordan, in 94, Brasil was already blessed with the NES and the Super NES.
@sony or microsoft no moar console:no comments. is a stupid rumor that will not come true, since both companies are rock solid on the console battleground and will not give up
@QOTW
1st enjoyed mp game: Counter-Strike… millions of hours wasted… WORTH IT