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!
@Diablo III‘s Wilson on former Diablo dev’s mixed feelings on game: “F- that loser”
The criticism sounds fair. I’m with Jonah on this subject, Diablo 3 didn’t do as good as expected, so it could be that the current team ended up venting some of their frustrations.
I’ll stick with how I feel about Blizzard after opting for all time Internet connection DRM: f*ck Blizzard.
I like what Brevik said:
“so I am happy that it has come to light that how talented that group was and how unique and special that group was. I am hoping that, as this happens very often in the industry, you see it with Call of Duty and things like that , when the people leave the game changes and it shows how critical people are in this industry.”
@C&C: Generals 2 will be multiplayer-only at launch
🙁 … why … I liked the story mode in Generals …
If however they release also modding tools for it, I can see fan made stories.
Thing is, if the game is MP only, I can see it forcing you to play with a constant online internet connection, no modding tools available.
Hmm ….
Jordan does have a point, to me the story sold the game. I did play MP and lots of skirmish, but it was the story that hooked me.
I will give it a play though, who knows …
@QOTW: I guess 2-3 months before announcing the next generation.
What happened to the “There’s a zombie on your lawn” song?
Hmm, “I can see” too much 😛 …
It’s good to hear that Paul is all right. We really need that “Paul touch” he adds to the podcast. I already miss his emotionally spurred illogical arguments. Reminds me of my ex-girlfriend.
@Diablo 3 bitching
It’s easy to see why Blizzard gets so emotional about that comment. It takes a lot of time and effort to develop a game. When someone criticises your work, you are bound to lash out. But if you do it on twitter and it makes into the news then you are daft and should probably go back to school. Next time just break into the guys house and discreetly take a shit on his carpet.
In reality, Diablo II was better and more successful then it’s sequel. That is a fact for many. But that was a long time ago. Blizzard attempted to modernise III to contemporary standard. This may have been a mistake. Poor fan service. Still, the game is out and nothing will change that.
@Guildwars
Wanted to play the original but never had an opportunity. For me there was always a barrier to playing MMOs. As I am a student, I am forced to own a laptop rather than a desktop. That means I can play an hour of an MMO at most before the thing goes into a critical meltdown. Recently I got a PS3 and downloaded DC Universe. I played the game before on my laptop but had to quit because of heating and lag problems. With the PS3 that problem is gone and I am actually enjoying myself. Wish they would release more MMOs on consoles. I am actually looking forward to FFXIV.
@Command and Conquer
The series is just not the same after Westwood fell apart. I enjoyed Red Alert 1 and 2. Played C&C 3 and wanted to kill something. That game was cancer. I still prefer to stick to Red Alert 2. Believe it or not, but there are still a 100 or so people hanging out on the on-line servers there.
@Prey’s great escape
Prey was a launch title for Xbox360 as far as I remember. Wouldn’t surprise me if they made Prey 2 for the next gen launch. A bit too risky to release games at the moment, unless they start with Halo, Assasins or Call.
@QOTW
Depends on the popularity of the console and the economic situation. In standard cases, you should cut the price a year or so after the release. By then most of those interested in shelling out full price for the console probably bough it. Others need an incentive and the price cut will do the trick. In special cases like PSVita, you should cut the price preferably before the sales figures go into negative numbers. With cases like PSP GO you shouldn’t make the console in the first place.
PS: I was enraged when BBC NEWS spent most of it’s report on Brevik’s conviction talking about how he played WOW and COD. Cause obviously all mass killers are influenced by video games. Should make a decent QOTW: does playing games make you want to pick up a gun and massacre people?
Greetings from Portugal!
Can’t wait to get a chance to play Guild Wars 2. I’ve already got enough games for now. If it receives enough praise by the end of this year, I’ll probably buy it. I’m also mildly excited for Plants vs Zombies 2, the original was great.
@QOTW: I think that any time hardware is not coming close to target sales, that should be the time that the company considers a price cut.