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!
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.