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!
@Avellone: Kickstarter still in its infancy
Not sure if backers will become more wary when a high profile project doesn’t make it. When somebody wants something really bad, they’re willing to ignore any kind of risks.
Now I’m not going to quote Michio Kaku however, since that would imply that most projects are trying to just rip people off, and I don’t think that’s true.
@CD Projekt RED’s new licensed sci-fi RPG officially titled Cyberpunk 2077
… really? No better title than that?
But again, the Witcher games were well received, so who knows …
@Zombie Nation – well, it was a severed flying giant head, so I guess you can count the character as a zombie.
@QOTW: dunno, really. I’m not into conferences that much, never been to one, so meh …
I’m very sorry, but I won’t be able to donate to your Kickstarter because I don’t have a credit card, and I don’t think my parents will accept “giving strangers money” as a valid reason for using theirs.
@QOTW: Being in such a small country, I could never attend such conventions.
Dynamic Jul: Try GamesCom in Germany.
I dont have much to contribute this week, i’ve been studying a f*cking lot
@QOTW:
yeah… Brasil doesn’t have many gaming conventions, and those we have are in Sao Paulo, wich is far far away from my house. it looks fun see people getting toys, shirts and exclusive stuff for free. i’d like to go to a big one in US some year… when i win the lottery :3