Another short episode, because really, summer game news is typically slow. A lot of interesting stuff this week, however.
All this and Listener Feedback.
This is a Gaming Podcast lite episode, it’s got less calories because we’re right in the middle of travel plans heading to New Orleans for Tales of the Cocktail (conference). This is also the reason the show is going out late this week as I’m posting it from a hotel room with crappy wifi, but we did it… we got it done. I’m keeping the show notes simple this week because we’re rushed for time.
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!
We’re looking back at Bubble Bobble and the history of Valve Corporation. In gaming podcast news, we’re kicking in a few hot stories with some great opinionated comments. Unfortunately, we had no community comments this week. This weeks news includes:
This week’s question of the week: How do you consume your television or movie media? Netflix, streaming, tiro, buy, theatre, hulu, etc.
