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!
Good show guys but I’m missing Paul and Dan.
I heard you mention your playing Shadowrun Returns Jonah, how are you liking the game? I’ve gotten it myself and it seems to have a short campaign seeming to rely on the community to create campaigns themselves like with the Neverwinter games.
Speaking of Sierra Online and Kickstarter, Hero-U being made by the Coreys was mentioning the various other creative leads also kickstarting their old franchises as well. Although changed since they don’t own the original IP like (Space Quest = Space Venture).
As for what I’m playing I’m playing Civ V BNW, Minecraft and Jade Empire. It’s my first time playing JE and I got it off GoG and I can see why it got the reviews it did, it is a well deserved reputation. Good atmosphere and challenge in the fights, at least for me since I’m not a great action game player.
@Getting old
Happy Birthday Jonah. Congratulations on getting one year closer to death. On the bright side, your mid-life crisis is just about over. Roll on arthritis, weak knees and a man-sized diaper.
@Phil Fish is no longer aPHILiated with FISHy gaming business (damn I’m punny)
Man. That sounds so childish. But it would have a better effect if FEZ would be Halo or Mass Effect. Personally, I never heard of FEZ until he started making all that racket. In fact , this could have a good post-mortem marketing effect.
@Shadow of the Eternals back from the dead (again)
It’s funny how the game is already f**king with you. And it’s not even out yet. I really want to see it released. It will be a nice £5 title, considering that It will sell next to no copies on the Wii U. Although I am afraid that this project will not see the light of day regardless of how many times they put it on Kickstarter. Not until Silicone Knights sell off the IP
@Neil Gaiman making games
That sounds terrific. Neil Gaiman is a talented writer, so the story is bound to be good. Lets hope the game can keep up with him. I read a number of his books. Enjoyed all of them. Looking forward to this game.
@The worldwide Internet sensation
I played WoW for the first time a few month ago and was very disappointed. It did not live up to my expectations. But that is most likely because I played a lot of WoW clones for the past few years and I am fed up with the genre. I found WoW to be very basic compared to its clones. I am sure it is a good game, but I just have to much of a life to waste my time on this.
Ps: I haven’t played Walking Dead past episode 1 yet, so I didn’t listen to the last podcast discussion to avoid spoilers. Thought I was successful, but did not expect Jordan’s stealthy revelation about Lee. For the future, it would be nice if you could maybe mention that spoilers will follow or put it in the podcast description, that would be nice.