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, as always, for the entertaining episode. Regarding PUBG: i like their approach to increase the performance, but they should have the player decide, if he wants this or if he wants to play on a server of “another” country. And for the mobile version (same as for the Fortnite mobile game): no! just no 🙂 FPS are PC only games for me … i even dont play FPS on a console .. i prefer mouse + keyboard … and for sure not on a 4 inch touchscreen 🙂
I loved playing WOW (and still will play it with the next expansion) but fishing was .. nar .. i did it to get some special fish or some achievments .. but not for fun 🙂
The fishing game for Dreamcast (Sega Bass Fishing) with the “real” fishing rod was fun 🙂
Thanks for the infos on Ys, i think i will give it a try.
@Jonah: a “Let´s play” of mass effect would be nice. A friend recommended me the series, and i bought all the games, but did not get into it so far 🙂
The easter offtopic: We have “kinder eggs” in germany. They are called “kid´s surprise” (dont know if it is tranlated correctly). The yellow plastic “egg” around the toy has changed, its “one” part right now … i think so that kids are not able to swallow one part of it? Don´t know 🙂 Never swallowd one of them as a kid and i had a lot of them, because my mum got me one, everytime she went shopping 🙂
And that you mentioned April fool: did you fell for one? 🙂
Have a nice week guys and hope to have a new episode soon 🙂
Greetings from germany,
Ralf