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!
Excellent episode guys!
@UK threatens to report parents for kids playing 18 rated games: I think Paul got side tracked with other points because this story had nothing to do with Religious zealots, home schooling or bringing games to school.
I don’t know why kids wouldn’t be allowed to talk about the games in school, I certainly did when I was in elementary. I agree with Jonah on this if you know what your kids are playing and watching and not just using them as babysitters it’s fine. I know every game my daughter plays and tv show she watches, yes I let her play Skyrim which apparently has a 15 and an 18 rating from UK. I know that game and what is in it, I feel she can handle it
@Zelda and Nintendo: I would love if Nintendo would package a game with their system again. It’s been too long since they’ve done that.
@Swatting is a terrible thing that needs to stop, so yes try the kid as an adult, they need to learn that there are consequences for this type of behavior.
@QotW: I am so glad you guys enjoyed the question, and also glad that you mentioned Abandonware. I think that is going to be part of the solution there, if companies that no longer wish to hold on to the legal rights for games that aren’t earning them money than it can be given over to those that will upkeep a emulator for it, there are XP emulators for example which I think is another part to keeping some games around for the next generation to play.