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.
As always: thank you very much for the episode 🙂
I am playing not that much at the moment, but some rounds of Magic the Gathering Arena and some rounds of WoW are always there 🙂 I also started playing Itorah, which is a very nice Metroidvania game.
Regarding your topics:
Walking Simulators: I really like those games. For me games like “Life is strange” , “Journey”, “Heavy Rain” or “Detroid become human” were awesome and i played all of them. Most of them have a fantastic atmosphere, good story, awesome music and i did not get bored or it feels repetitive.
Fifa:
I cant describe how less i care about that 😀
I never played any Fifa since i had one about 20 years ago for the PS1. The best soccer game of all time still is “World Cup” for NES oder GameBoy 🙂
Starfield:
It seems that i am the only person who is not hyped for that game … nearly all my friends are waiting for it since it was announced.
All the other topics:
Cant say anything useful or interesting about them… sorry 🙂
Keep healthy and keep on with the good work guys.
Greetings from germany,
Ralf
I’m hoping to see Starfield footage at the Microsoft/Bethesda show in June, even if the game is delayed.