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!
Jonah,
I have to say I am a bit offended at your blanket statement about The Sims fans all being a bunch of 14 year old girl Bieber fans. I’ll have you know we are 30 something old bieber fans, j/k. There really are a wide age range of Sims fans. While the game as Paul said was made to be easier and accessible to a broader range of fans doesn’t mean the game is simple. People have made Machinama’s, Legacy families, build challenges, etc. Proof is also in some sites catering to the more Adult things you can do with the Sims, I won’t list the sites to keep this clean but Google around and I’m sure you’ll find what I mean.
I’d like to answer both this week’s question and last weeks since they both interest me:
This Weeks: I was going to first say Facebook Games but they seem to be dying nicely on their own. Instead I wouldn’t mind to see all FPS games die in a fire, I wouldn’t miss any of them. The last one I really played was Doom I. After that they all pretty much seem the same and very boring. Listening to you guys talk about Halo and MasterChef I couldn’t see what was the appeal about the game or MC as a Iconic character. When I play a game I want to be Indiana Jones or Bond, I don’t want to be me in the game.
Last Week’s: For me the golden age would be like Paul’s with the SNES and it’s plethora of RPG games. Jordan is in for a real treat playing CT for the first time, I wish I could do that as well. The SNES was a time when I felt that I belonged to the gaming community. I loved CT, FF4 and FF6 games. After release of N64 I felt like FPS was taking over and becoming the game genre to make. Adventure seemed to die after that era. I later felt solace with the PS1 and DS games for my adventure and RPG needs.
To sum up I feel like FPS has displaced me as market for games because I am too old and slow to “get” FPS games and Adventure/RPG doesn’t make enough money by comparison.
Re: Blizzard not rolling back Diablo III game data.
I like that they have chosen not to punish everyone who didn’t use the exploit. It makes me think that Blizzard actually cares about its customers.
Re: Obsidian desires to make Star Wars Rpg.
The question is will they be allowed to and can they afford the price that EA will probably charge for the rights to make it?
Hey guys,
I missed last week’s QOTW so maybe I’ll give my answer as Alphasard did.
Golden era of games: It’s so hard to choose. I’ve been playing games on and off for the most part of my life. I played a lot of Atari, C64, then (S)NES but I think I became aware of what I was really playing and I started actively looking for particular games in the late 90’s, earliy 2000’s. I already mentioned my love of adventure games and that’s when I found Broken Sword, the Monkey Island series, Jack Orlando, Syberia, etc. I also loved Heroes of Might and Magic III and I played a lot of NFS: Hot Pursuit. Somewhere around 2002 I stopped upgrading my PC and I didn’t really play any new stuff… Until I bought a PS3 3 years ago and I can play all the new releases without having to worry about hardware which is great. This is my gaming renaissance, so to speak.
Genre I’m burnt out on: I would have to say sports games. I’m an NHL fan and I played the EA Sports games since 1998. I bought NHL11 for my PS3, I played a while but I found many better games to play. I think I haven’t played a single game in over a year. I enjoyed FIFA and NBA games back in the day as well but I’m not drawn to them anymore.
Question from the reader: Do you think that the E3 this year is going to be a big event? Could it be too damn big with the new generation consoles playing a huge part in it? (Sorry Jonah, couldn’t resist 😉 )