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!
@Gaming flashback: did any of you played Mission Impossible on NES?
@“Linear is not a dirty word for an FPS”
Well, what can I say, if you wan to push for a very specific story/experience, then linear is the only way to do it.
However, you get better replay value from sandbox games. Heck, I still love playing all STALKER games.
Jonah, good point on building a climax easier on linear games. I harp back to STALKER: the first game was a sandbox game up until reaching Chernobyl. Afterwards, it turned linear, and it didn’t feel bad at all.
I feel so sorry for GSC having to shut down. I hope Vostok Games (the startup from the former GSC games) will do better.
@Pachter decries on-disc DLC as “just plain greed”:
You know, this time I agree with the dude.
@Crysis 2 returns to Steam:
Hmm, lemme guess, Origin didn’t work that great? Or is it that money has no color, so Steam customers are just as good as Origin customers?
Did Valve lower their demands in the cut from DLC?
@The Old Republic still has one of the biggest dev teams in industry:
It’s hard to sell 3 mil. of copies of anything, never mind a new IP. It’s a risky bet.
@QOTW:
What do you guys think of “Amnesia: The Dark Descent”? That is, if you played it.
i am sorry i disapeared but i do not have much time…
@qotw how long does it take to make a single episode of a podcast from early planning to final editing?
Not much interested in the news, so I’m going to comment on E3.
Plenty of games have been added to my list of games I want to play, among them are:
-Need for Speed Most Wanted
-Epic Mickey 2
-New Super Mario Bros. U
-Pikmin 3
-Rayman Legends
-Tom Clancy’s Splinter Cell: Blacklist
-Tomb Raider
-Watch Dogs
Worst E3 conference was Microsoft, best was Ubisoft. What I don’t get is how many people are “disappointed” by Nintendo’s conference, expecting huge releases such as Zelda, Metroid, F-Zero or even Smash Bros. I think that many people do not understand how long it takes to make the great games Nintendo makes, and expect them to churn them out like Call of Duty. I also think that it’s a smart move by Nintendo, releasing quite a few good titles at launch, and then pace the awesome games one by one for the future. Maybe this way the WiiU won’t run out of first-party games as soon as the Wii did.
2 questions, both for Paul:
So, did you shit your pants when Nintendo announced the WiiU will come out Holiday 2012?
Have you finished Skyward Sword yet?