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.
Thanks for the episode 🙂
Even if I don’t play that much since my partner died, I still like to Listen to your podcast. I hope that’s ok for you if I comment anyway, even if I can’t say that much to the topics you talk about.
I still played a lot Pokémon go and tried the new TCG Lorcana. It’s really fun and I did not know that poGo is that complex!
Do you guys know more mobile games like ingress and Pokémon go? Does anyone of you play one of these both?
Besides these I don’t play that much mobile games, so I sonst care about Apple Arcade being shut down 🙂 (I know there are games not only for mobile, but for me it feels that way).
I still plan to play BG3 when it gets a little bit cheaper and I feel like playing such a massive game 🙂
I am really looking forward Silksong which hopefully will be released this year!
Stay healthy guys and keep on the good work.
Greetings,
Ralf