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!
@Notch selling Mojang to Microsoft: I was a bit apprehensive when I first heard this story. Though we have no confirmation I’m taking the silence as to mean a deal is being discussed and nothing is finalized yet. The more I thought about it and after listening to your take on it I think it could be alright. I’m just concerned with what they might charge for using the PC version. I’ve also come to be used to Mojang having added features with each new version release and I hope that continues. I’m not so bothered by Notch selling the company since he’s walked away from Minecraft when he did the Full release a couple years ago. I hope that we will also still be able to use our own custom skins, resource packs and mods for the PC.
@Good games worth paying for: I do agree with the sentiment that quality games are indeed worth paying for. Like Skyrim was and I’m sure a lot of hard work went into that game. The quote “a terrible game lasts forever” is right when you have the Atari ET as an example.
@80’s shows: I got both the Dungeons and Dragons and Captain N show references , I loved both shows as a kid.
@FFVI: I knew I had forgotten to mention Terra from FF6, I feel that the first half of that game was about Terra and Celeste the second half the game. I remember the argument I got in with my friend over this when he noticed that I wasn’t using Edgar or Locke in my party and he questioned me “Why aren’t I using the main guys?” My response was “what main guys? Terra and Celeste are the heros and he got so mad and yelled at me that Edgar was the hero. How can he be the hero, or Locke, when you can beat the game without them at all? More over the whole story revolved around the Espers and the empire trying to use them.
And just FYI I am a guy but that doesn’t mean I can’t emphasize with women or feel rejected when I hear things like “Girls won’t like you if you play games, why don’t you play a sport instead?”
I also did misunderstand your point Paul, thanks for clearing it up.
@QOTW: I remember making a few custom units in CIV 2 and using the map editor. I’ve played around with programs like RPG Maker and other similar RPG games like Neverwinter. The amount of work in making even the smallest dungeons or quests is just tremendous so I have to give it to those who make entire games worth of content and quality work. You do get what you pay for.