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 haven’t written in for a while because you failed to speak bad of Vita all these weeks 🙂 the moment I heard Jonah flip flop on what media devices the Vita uses I knew I had to straighten it out (too bad about Jordan). Oh, there’s also work but I guess that’s a minor thing 🙂
The Vita uses cards and is still a great platforms with many great games. I just got the platinum trophy in Velocity 2X, which is just an amazing shoot’em up/platformer game. I wonder if it could break your dislike of the device…
I also haven’t been writing in because I didn’t feel I had much to add on the subject of the recent news items. However, the Windows 10 news is quite interesting. The reason they gave for skipping a number is great. Way to go with consistent naming, Microsoft! I’ve been using Windows since Win95 and they pretty much stick to the pattern of having every second system be terrible, as if they had two dev teams and one of them had no idea what they were doing. I bought a Win8.1 laptop recently (no touch) and I found it very hard to navigate through my apps. The Metro design sucks for mouse-operated devices and it’s not that intuitive for touch either.
Let me end with a little ‘about me’ section so that maybe Paul remembers me next time. We share the first name, after all 🙂 I’m 29, fonished college years ago and I’m trying to do a PhD in electronics/computer science. I also work for a startup which will one day be sold for… ONE MILLION DOLLARS (puts pinky in mouth).
Coming back to tje topic of Vita, my question to you guys. Which handhelds have you owned / do you own and enjoy a lot? Explain why 3DS is better than the Vita without using the words or phrases Link, Zelda, ‘the legend of’, ocarina 🙂
Cheers,
Pawel