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!
John Riccitiello
Great show guys!
@Final Fantasy: This was one of my favorite series growing up I started with the very first game when it came out! So imagine having spent hours playing that first game, then when FFIV(2 in USA) came out it looked like leaps and bounds in improvement. To me FF6 was an improvement in graphics, story and characters over FF4. Hearing Paul having trouble differentiating between 4 and 6 got me thinking that the characters may have been a bit bland in comparison. As there is no other “green summoner girl” besides Rydia and no other Dragon Knight other than Kain. I haven’t played those games in years and I still remember their names. The characters in FF6 were very different than in FF4. Also bad Paul getting my hopes up that I had perhaps missed a sequel to FF6 when he had been thinking of FF4 sequel.
@Backwards compatibility: The problem for me is that the old hardware breaks down and they stop making the older systems so it’s not as easy or cheap to get a hold of. I looked on Ebay for fully backwards compatible PS3 and most were very expensive AND had “Yellow light of death”.
@Kinect: If they want me to buy a next gen system they SHOULD make a Star Wars Lightsaber or some sword dueling game. There was a Red Katana or something for Wii but that was a FPS with a few sword fights peppered in there. If either the Xbox or PS4 came out with a sword fighting game, especially one I could play with friends I would buy it in a heart beat. Obviously they don’t want me as customer.
QorW: I think Animal Crossing: New Leaf counts right? I’m having fun playing this with my wife and daughter we go on the island tours. I am like Jordan though I don’t play many portable games I’m mostly a PC guy.
Oh and sorry for spelling errors in last weeks comments. I think I had a dyslexic moment myself and I always think Indy when I see Indie. It’s hard not to when he was a childhood hero of mine.
I forgot to mention I loved hearing the Clue reference to Mrs White’s bit. That’s one of my all time favorite movies.
I never understood being a Final Fantasy person VS a Phantasy Star person, can’t one enjoy both series? I particularly enjoyed Phantasy Star 3 with it’s Family generational story, I don’t think there is any other game that has you going down the line of a family tree while trying to save the world. I thought it was a pretty great concept that I would love to see more of.