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!
This weeks gaming podcast we stroll down memory lane with Gauntlet, ponder Microsoft’s role as a PC game publisher, hit up some news:
@Aussie Diablo III preorders not getting refunded from GAME
This sucks major balls. Aussies already get the short end of the stick, due to significantly higher prices. I pity them, they deserve better.
@Dark Souls multiplayer
I think that another game that uses a similar concept is TrackMania Nations. Granted, in TMN you only see the ghost of the other players, they don’t affect the game too much.
@QOTW:
Hmm, I don’t really play free-to-play games. I did play a free game (“Red Alert: A Path Beyond”) though.
Good news, Herr: Blizzard is accepting those preorder refunds from GAME. Just send them your receipt, and you can purchase it from Blizzard minus the deposit.
Hi Jonah, Jordan, Paul and Dan;
I love the show and really enjoy listening to your buys perspective on the gaming industry.
I was wondering if you guys could discuss the recent announcement for an Enhanced Edition of Baldur’s Gate I & II and their plans to make Baldur’s Gate III.
Do you think they will actually make this worth buying since you can get both of the Original games gog.com rather cheaply. I’m sure these Enhanced Editions will be around $60. I can’t help but want to keep my expectations low on this even though I do love the BG series.
Some awkward silence there… I think Dan was a bit tired during recording.
@QOTW: I would say hands down Team Fortress 2, it is just so fun. I have clocked in 265 hours and the only reason I have stopped playing it is because I know every nook and cranny in it. It also gets kind of boring when you’re constantly at the top of the leaderboard :P.
I have recently started play the MOBA Super Monday Night Combat. It’s great, I’ve played 78 hours of it, but it only has 1 mode and 3 maps as of yet. There isn’t much else to do but master the different classes. I think it also made me hate MOBA games just because there is rarely a team environment. Everyone gets pissy whenever their team loses, and blame it on their teammates even if they were the worst player. I don’t know, in TF2 I always had that feeling of being in a huge team cooperating, and if you died it was your fault.
I would also like to note that I have never spent a penny on free-to-play games.
@PlayAlterEgo: I got kidnapped and killed on my way to school…