Layoffs around the industry dominates the news, as well as workplace issues.
The news includes:
Let us know what you think.
It’s almost a two gaming podcast week as we’re releasing this episode “wicked early” — sorry, we’re from New England. Derrick’s heading off to Germany on business and we’d hate to miss a week because of the trip, so here you go. This week we flash back to Pac-Man, cover some gaming history on Disney Interactive Studio and plow through some game news:
Ex-Ensemble Studios Folks Form New StudioThis week we’re asking the listeners the question, do you believe Microsoft will be successful opening a retail chain? We also handle a few user comments including one regarding Don’s rapping career or lack of a career.
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!
Never underestimate the power of a killer TD Gaming Podcatz. They haz downloaded an episode! Thanks to Dan R. for sending this one in, it definitely made us laugh… mainly because it was just so random.
