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.
You know it: thanks as always for the episode 🙂
I played a lot of Diablo 4 the last weeks, but besides this i only watched some tv series and did not play that much (not even Magic!).
Handheld discussion: i really love the Switch and my new “console” the steam deck, because i love to have the possibility to take it on a trip or to play some smaller games while in bed or on the plane or stuff like that. If i will buy a possible pS5 handheld … cant say …. at the moment there are not enough games out for ps5 which interest me … i am still playing god of war (not the new one, the remastered HDR 4k version of the ps4!).
Jagges Alliance: never played any of these … dont hit me too hard for this 🙂
Hifi Rush: neither played this one … i think now i will be dismissed, right? 😉
Gamescon: you only mentioned it in one sentence, but i am looking forward if there will be some new interesting indie titles, because these are more interesting for me than most of the triple A titles. If one of you will visit the gamescon, just give me a hint, maybe we can have diner together or if you need a place to sleep.
Keep on the good work and stay healthy and happy!
Greetings from germany,
Ralf