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 this episode! I really loved, that you talked so much about older games, so I could listen more carefully because I nearly knew all the games!
But some things to mention:
Open world Elden ring: I am completely on your side Jonah: I don’t have that much time to grind 10 hours to get to next point. I want games where I knew that they will end after 10 levels or when you solved 50 puzzles or something like that. Open world games don’t have that goal for me. I totally understand that people having fun with that, but not me 🙂
Street fighter 3: I was involved in the street fighter video game scene so I knew what you tried to analyze. In my opinion on 3rd strike came up when SF4 was released. Many old players didn’t like it and tried to show their disrespect by hyping 3rd strike again.
Hard mode / easy mode / achievements:
I think it’s hard for developers to find the best way between „not to easy but hard enough to not get bored“. Sometimes I like to change the difficulty but sometimes I feel like I don’t wanna have the choice because I want to play the game how it was intended by the developers.
Achievements: sometimes I try to get them, sometimes I don’t care. It depends on the game. It’s nice because you don’t need them, they don’t change the game itself but if you really want to can play the game a different way. So I think it’s a nice thing and it’s a nice addition.
Thanks again and please stay healthy and enjoy life!
Greetings,
Ralf