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!
Yeah, they did it as a Fathom event in Portland and I went… good stuff. Nice seeing what Fable and Avowed might look like when they come out.
The Internet is already talking about “No Man’s Skyrim”. I’m cautiously optimistic. It seems VERY ambitious. Between ship building, habitat building, space travel, trading, combat, a room full of sandwiches, it’s a lot…
Hi guys.
Thanks for this huge episode! Sadly i know nearly none of the games π
I heared about SF6, but you skipped it π
You mentioned one Metroidvania game coming, which should look very good, but i did not get the name. It was very early in the episode … could you please tell me the name? I love Metroidvania games π
I am playing the hell out of Diablo 4 … and the words i choose were not intended to describe it π
And as always some Magic the Gathering. Nesides thsi the ummer is coming and so are the concerts and festivals i enjoy in staed of sitting at my pc or console … i need people around me at the moment -.-
Thanks for your effort and i promise i try to listen to the podcast more often and comment it … as i did the last years <3
Greetings from germany
Ralf