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!
@Microsoft Points
This makes more sense, doesn’t it? I’m not sure what the deal was previously – did the games cost a different number of points in different regions? If so, it doesn’t make a difference which way you make transactions but for the customer it’s always easier to think in their native currency rather than some arbitrary points. And, if you get some extra $$$ when converting, that’s even better.
@Origin return policy
Are you sure, Jonah, that they will be able to monitor if you played through the game? One would have to read the fine print, probably, and I’m too lazy to do it 😉 They should implement some fail-safes into the user agreement if they don’t want the policy to be abused.
Anyway, seems like a good idea to demo games. People will buy them thinking they will return it if they don’t like it but a part of them will be too lazy to do that later 🙂 Win some, lose some for EA, but should result in a net gain. However, this may mean they won’t win the Worst Company in America Award next year…
@Borderlands 2 on Vita
YAY! I played the first Borderlands on my PS3 and I really liked it. It wasn’t as boring as Diablo, although the core mechanic of both games is similar – kill, get loot, upgrade weapons. Rinse and repeat. The second part coming to Vita is great news and I really hope they add some DLCs to the bundle. Still, it’s another non-exclusive game for the Vita so why even bother, right? 😉
@Next gen launch titles
As much as I enjoy indie games there’s one thing that I don’t like about the industry moving in that direction as much as it is. It’s simple – I don’t need a 1.6 GHz, 8-core, 8GB RAM machine to play Limbo… I understand that games are games and there are a multitude of great games with simple graphics but that doesn’t justify creating a new generation of gaming consoles. Unless there are developers and publishers willing to break the boundaries of what the current gen can support, I don’t even see why we need ‘next gen’ hardware. Hopefully, what’s happening now means that we will get as many AAA titles as before and, in addition, a slew of amazing indie titles.
QOTW: Nothing’s changed since last week 😛
Podcast
@Microsoft getting some sense
Microsoft points were a barrier to many people I know. Awkward unspendable amounts. Having to buy more points then needed. Not to mention that a game that is £7 looks more cost effective than a game that is 800MS points (equivalent prices). I am glad they are gone. Just have to cash in my codes and good riddance.
@Gamers can return digital titles on Origin after a week
What’s Origin?
@Bungie’s Destiny
I am really looking forward to it. I have great respect for Bungie. Destiny is an ambitious project. However, I can’t speculate on whether it will outshine Halo. Let alone Star Wars. So far all it looks like is a Halo MMOFPS. Prove me wrong Bungie.
@Borderlands 2 coming to PlayStation Vita
What’s Playstation Vita? Is it somehow related to Origin?
@Sony/Microsoft announces launch titles/line-up/window (the Internet has no clue either)
I pre-ordered a PS4 because by the time Xbox comes out in Europe my exam period will start and I will have no time. The line-up is impressive but makes not much difference. In the end, launch titles are pointless. What will sell the console are the exclusives which will come out much later in the console cycle. By the time Halo 5 comes out I will probably already own both consoles. So, for now I am going for the cheaper one that comes out earlier.
@QOTW
Very console gamer. I own practically every console that came in the past 10 years (minus PS vita which sucks). I have a laptop but it has crap specks. Much like Pavel, I stopped chasing performance as it is a very expensive business. Especially if you are not a teckie. I still have a 100 or so games on my Steam account (bloody sales), which I sometimes play.