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!
To clarify a part of Jonah’s post, my last episode as a regular co-host of the show is to be the next one.
So, we’ll do follow-ups for some of the older news items. Cool!
@Jay Wilson steps down from Diablo III stewardship
Eh, I guess that’s what happens when you focus a bit too much on making money instead of making a game. Jonah, I’m 100% with you.
I wouldn’t put the blame on the lead game designer though: if you’re not the top dog in the hierarchy, your freedom is limited.
Hmm, Brevik ? Maybe.
@The Secret World sees ‘400% increase in activity’
Buy2Play is a bit weird, since you still have server maintenance to pay for. Dunno. I can see it for an MMO that would use a p2p network system to alleviate server loads, but for a classic client-server architecture? Dunno. To me it sounds like putting a limit to the lifespan of the game.
Time, prove me wrong.
@Mojang: Minecraft XBLA outsold Minecraft PC in 2012
And here’s the XBLA gold rush 🙂
Like the iPhone gold rush before. And the other XBLA gold rush before the iPhone rush.
Joking aside, I can see people interpreting this as a sign to where to publish. Truth is, a good game sells. Regardless of the platform.
@Sony settles lawsuit with Kevin Butler actor Jerry Lambert
This is screwed up. It’s his freaking face. It’s not like Sony owns it. But what the heck, what do I know.
@Pachter: Nintendo is “a few years late” in everything they do
I think the guy has a point. In terms of performance, he’s right. In terms of peripherals, they were left behind by Kinect. As for a games library, again, he’s right.
Paul, I guess you’d like to make a zombie out of him? 🙂
@QOTW
STALKER, but! The former GSC team is working on Survarium, and the STALKER brand did get a new roof, but with a different studio.
So sure, I do want something STALKER like, it’s just I’m not sure it’ll be STALKER2 (not announced) or the Survarium game.
Dan, good news about your employment! You will be missed.
@Diablo 3 beheaded (I wish)
Meh
@Secret World
Double Meh
@Sony and Kevin Buttler
Tripple Meh. Boredom COMBO.
@Minecraft XBLA
The answer is simple. PC version is far to easy to pirate. It’s less than a megabyte and you can store it on a floppy disk. Furthermore, as funny as it sounds Minecraft multiplayer is very processor heavy. The XBLA version is a lot more stable (and even then someone gets dropped once in a while). It may be pricy and lack the mods but there is nothing like it on the Xbox.
@Nintendo is a step behind
If you may recall, I was talking about this for the past year. Nintendo’s problem is that it is fueled by tradition. The Wise Old Men who run the company call all the shots. They make what they THINK the consumer wants. And you can’t define the world by Satoru Iwata’s personal tastes. The reason why Xbox is doing so well is that Microsoft is running a business. Tablets are successful? Que SmartGlass. 3D sucks? Drop it. Kinect is popular? Make Kinect 2.
On another note, I can’t wait till you discuss the newly revealed Wii U titles. I am brewing up a shitstorm in my cauldron as we speak.
@QOTW
Man. Way to many. It’s sad to a see a franchise die just because people spend all their money on COD and FIFA. The obvious answer is Shenmue 3. The story was finished for the last 15 years. They just don’t have the funds to put it into a digital form. How sad…
A proper sequel to the Duke Nukem franchise is another. The game made a profit. They should make a new game. This time for real.
Hello long time listener, love the show especially Paul.
@QOTW : I’m going to cheat and pick two if it’s fine with ya gents, always wanted sequels to these.
1). The Brave fencer Musashi: This was my favorite kirby game growing up.
2). Misadventures of Tron Bon:Its like having your own army made of small huggable Lego people.