Like a washed up superstar, Grand Theft Auto IV continues to drop in NPD figures. This Axl Rose of video games came on strong and sputtered out into oblivion with barely a notice, leaving the spotlight and all hype behind it. This drastic fall may hurt any negotiations “behind closed doors” with Electronic Arts and their constant attempts to take over Take-Two.
Prior to the release of GTA IV we, in our gaming podcast, predicted a huge launch would up the anti against the bids on Take-Two from EA but things didn’t work out exactly as we expected. Although the game has sold 8.5-million units, it might not add any new bargaining power to the back door negotiations.
A game company is only as good as their games. A hit title which dies out quick helps financially guide the future of the company; technically the future isn’t so bright. With the title quickly falling off the top game sales charts we may never see it hit record sales figures to match that of smaller titles. Having one hot title every four years that “breaks records” for a week isn’t a strong weapon against a low bid from a larger publisher.
While EA may not have any record setting “one week” sales titles yet, they do have a consistently strong set of titles which stick on the charts for months with newer titles arriving to take their spot when they fade. The same can be said for a few other notable publishers, Activision and Ubisoft. To survive in the hot game industry, especially with market downturns, one must have a cycle of great games to publish throughout the year consistently year-over-year in order to provide evidence of their financial stability.
Assuming the bid won’t raise for GTA IV, where does that leave Take-Two? Perhaps Take-Two is better off under the umbrella of Electronic Arts after all. The waters are getting more hostile in the industry as companies compete for gamers attention with 100-million dollar titles and casual games and game consoles (read: Wii) start to build a whole new none-gamer-style momentum.
Is Take-Two better off under the EA brand?
The famous Michael Pachter, industry analyst has been drawing some strong connections between Xbox 360 gamers and the Netflix subscriber base since 360 launched their Netflix addition. Our family has seen the same thing, we signed up for Netflix a few days after it arrived on the Xbox 360 firmware launch.
Hi guys great episode!
I found Infamous to be a pretty easy game, if they make the third even more so just seems sad. Not a lot of games seem to be as difficult as the old 8-bit games. I do like the paper trail feature Jordan talked about and I know Rockstar has a similar thing though not quite as cool as unlocking more missions through using the website, you can still track your progress of various games on the site.
Hearing Paul spending 200 on in game purchases on a FB game just makes me sad. I know it’s his choice on how to spend his money but a lot of FB games really seem to encourage you to spend real money to get fake in game money just to speed things up and make the game enjoyable. The Foxtrot comic Jonah brought up is a good example of why I don’t like those games. I feel like it’s lazy game making and undeserving of my money. I know they got to make money to pay their bills but I don’t like what they are selling. I guess though if there is a demand for these type of games who am I to judge? I’ll stop beating the dead horse now.
@Occulus bought by FB: When I first heard the news I was like “Why?” I wasn’t the only one scratching my head at this. I really didn’t want to think of Virtual Farmville. I do like the idea though of remote classroom, though I know we already have video chat for that sort of thing. Is anyone going to really want to wear this thing on their head? It’s like a fancier virtual boy.
QOTW: I subscribe to Gameinformer, which can be read online now. It does seem like it’s less and less necessary now though given how easy it is to hear about gaming news.