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!
Welcome back Paul, I didn’t know if it was for certain since Jonah said *might* be. I’ve been listening to since DanQ joined months ago.
I like how you get on my case about not being able to pick a favorite soundtrack and then go on to say how hard it is to do just that.
I feel that Link to the Past is still my favorite Zelda game in the series. I didn’t realize it was so heavily edited for American audiences but I am not surprised it was since it is a big practice to modify games and shows from Japan.
@Bully: Why would anyone want to play a game where they actually go to school? Didn’t we all do enough of that?
QOTW: Now, Jonah, what do you mean Boss battles are generally bad? That’s the high light of a good game, like in the Zelda series. They even made a game solely about Boss Battles (Shadow of the Colossus).