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!
Another PSP Coming:
Man, first you knock Final Fantasy and then Darkwing Duck? I felt that Darkwing was as well rounded as Rebecca from Talespin, love both shows by the way, yes he self promoted but I think he did that in part to help take care of his adopted daughter Goslyn. He also used non-lethal means to fight villains, like Batman. I’m surprised that you guys didn’t talk about the video game counterparts to Talespin and Darkwing Duck.
One last thing about why I back any kickstarter game, there is a game Sword Coast Legends being made by N-space. The companies president, Dan Tudge said “I think that consumers have proven by voting with their wallets that not everyone wants to play a hundred-million-dollar blockbuster, though we certainly all enjoy them,” said Tudge. “There’s a place for really creative story-driven RPGs that do things like remain isometric, do things like party-based-tactical combat with pause-and-play.”
To me that statement validates my backing games like Pillar’s of Eternity as a vote for those kinds of games to be made. I had thought it was very oddly coincidental that this game was coming out along with PoE and the others.
@Lenovo: People like him are one reason why I like building my own computer and staying away from pre-built “brand name” computers. Having some companies unnecessary software is bad enough but to put in underhanded adware and spyware is just ridiculous.
@FCC and Net Neutrality: This is one of those things I know people debate about whether or not the Government should be regulating this sort of thing. From what you guys have outlined it certainly seems like something that needs to happen. I know my own internet seems to get throttled or some sites not work at all for no apparent reason.
@Capcom and Modders: I love Modders, always defying what Companies state can or can’t be done.
@Star Trek tribute to Spock: I was born after the show had aired but I grew up with the movies so I have an attachment to the old cast of sorts. TNG and DS9 is still my favorites and even there Spocks’ presence was felt in episodes he showed up in like Unification. I love how the gaming community can honor their fallen icons, much like WoW did with Robin Williams and now Nimoy in STO.