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.
Thank you very much as always for the episode. I appreciate the work you put into every episode every week, and i am sorry,
that i can´t listenm to every episode as fast as i want to 🙁
Regarding the topics:
I played a lot of WoW (damn drug), amd since last week a loooot of MTG Arena, because the new set is out and its awesome 🙂
In addition i played some Ori and The Will of the Wisp and a lot of Last of Us 2. And of course some rounds of Jackbox Party, which was really fun!
Space Invaders:
I grew up with this, it was my first game on Atari 2600 back in the 80s 🙂
But paying so much money for a colored version … naaaarrr .. dont think so 🙂
Maybe if it will come to steam and there will be a sale 🙂
Gaming Flashback:
I never even heard of the name of the game … mhmm .. strange. But Regarding Doom: i was not able to play it back in the 90s, because the sound made me sick, i mean really sick. These bass-like sound for a longer time, made me feel like i had to puke 🙁
Shroud & Ninja & Mixer:
These guys have enough money for the rest of their lives … so .. i dont care where they will go, they will have their fans anywhere 🙂
I don´t like Mixer at all, can´t say why, but the “look and feel” is not mine. I can´t say how it was for the streamer, i am only telling my opinion as a viewer.
The only time i go on mixer, is playing JackBox party with Jonah.
SF5:
I loved to watch Street Fighter Tournaments, expecially the EVO or Capcom Cup … i don´t think that the same feelings come over with a online stream. Sadly it´s the best thing they can do right now during this situation.
And yes, SF4 was way more better than SF5 in my opinion!
Thanks again, its always fun, listening to you gus, having fun and hearing your opinion on all these topics 🙂
Stay healthy and i hope to hear from you next week.
Greetings,
Ralf