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!
Hey guys. I’m back from commenting retirement forced to do so once again by your grim opinions on my favorite console 🙂
@Vita
The Vita isn’t going anywhere. While I already said that I partially agree with Jordan that there is no constant flow of exclusive games, I still can’t say that this means that there is nothing to play on the Vita. Especially now with the cheaper version and the PS4 Remote Play, people will think again about buying one. Heck, if Jonah is considering getting one… maybe… By the way – http://en.wikipedia.org/wiki/Category:PlayStation_Vita-only_games sure, there is crapware there but there’s at least a dozen perfectly good, big games.
I also think Borderlands 2 isn’t really a system seller but it’s a well-known title that will make people look at the Vita and I believe that once you play it for a while, you realize how good of a system it really is for on-the-go gaming.
@PSNow
Obviously, people will,in general, not pay a subscription to play PS1 games, but PS3… I bet there are many people who would rather sell their PS3 and get PSNow for PS4 than keep the two consoles. It’s obvious to me that Sony shouldn’t be aiming at the latest releases to be available via PSNow. It’s going to be tough but if they play it right, they might be able to pull it off. I wonder if the games people own digitally will be available via PSNow for free… Also the ones obtained from PS+.
@QOTW
I didn’t really introduce anyone to video gaming. However, I convinced two friends to get a PS+ subscription for their PS3. I guess this counts. I also introduces some friend to board gaming and we meet regularly to play but this is easier since it’s intrinsically a more social activity.
Hey guys,
Don’t have too much to add this time but I’ll answer the QOtW.
I think I can say my wife and I introduced our daughter into Gaming. She loves to play Minecraft, Sims, Fable, and some other web based games.
Great show guys and keep up the good work. I also like it when you have 3 man team going with Paul or Dan.