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!
Had to re-write the message … lesson learned: don’t rush into rebooting your computer.
I also noticed that I skipped an episode 🙁 …
@EA gets exclusive license to publish Star Wars games, powered by Frostbite 3 engine
Yay, quick profits, here we go! Sure, it’s easier to license an IP rather then keep a studio. There is however the issue of quality: would people like “Call of X-Wings”?
Jonah, the name of the studio was Westwood. They did all C&C games up to and including Renegade. Not sure how many of the devs remained with EA though, after the studio was aquired.
@The Sims 4 officially announced by Electronic Arts
The time of CD key for EA has passed :P. This time they’ll be putting DRM first, but drop the MMO-like requirements. I expect an on-line DRM, but with much less bandwidth requirements. Think of Assasin’s Creed as opposed to Diablo III.
Don’t you dare edit the “fucking seasons”!
@Michael Biehn hints at Far Cry 3 Blood Dragon sequel
Could be a lot of wishful thinking, if you ask me.
@Spiritual successor to Eternal Darkness hitting crowdfunding on May 6
Is there a success story that involves an old IP that the publishers forgot about and crowd funding? So far everything I heard of are just projects in development, so I’m asking: was something similar to this released?
@Gearbox dismisses Aliens: Colonial Marines lawsuit as “beyond meritless”
The lawsuit is meritless. Unless there’s a written document, signed by all parts involved, that the game will not contain human opponents, it won’t stick.
Yes, what they did is bad. Yes, we don’t learn the lesson. We never do. Yes, we’ll most likely still pre-order games.
@QOTW:
Hard to name a particular generation. I liked the ’90s in Romania, with their NES clones and pirated cartridges. The whole experience was new, and there were so many games to play!
I also liked the 2001-2005 period. It’s then when I turned to the PC.