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.
Thanks for the episode. It was intersting and funny as always π To your question of the week: I Played Portal the first time last year. Of course i completed it very fast, but this was a PC game i played about 10 years after its release π
For Console games, it must be some of the first 6 Mega Man Games … i donΒ΄t remember which ones i played as a kid, but of course not all of them. So i decided to play through the first 6 Mega Man games last year π
I like to play all the old games, i missed in my youth, but as you know: now (as an adult) you got the money to buy games, but you dont have the time anymore to play all of them π
Jonah: Archon is a really great game! I loved it as a kid, even i did not understood it at all π (I am born in 1980, so i was 4 years old, when Archon was released, and i got my first C-64 when i was 8).
So thanks again guys and keep gaming π