Archive for Economics

Gamernomics: EA and Take-Two

Posted in News with tags , , , , , , on February 25, 2008 by Pvt. Eyes

Since last week, EA has been seeking a takeover of Take-Two Interactive, developer of the GTA franchise. Last Friday, Take-Two rejected a two billion dollar proposal by EA, but the latter company is at it again. In a story even picked up by Morning Edition as I heard this morning driving to work, EA is now launching a GTA-style hostile takeover of TT by going straight to the shareholders.

Electronic Arts is offering to buy out TT shares for $26 per share, which was a pretty good deal when TT was at $17.83 per share after Friday’s closing bell. Not so much this morning, as TT shares have jumped to $26.60 (at last check) and are expected to rise even more. That’s about a three year high for the stock, but EA says that it will not rest just yet – they want TT before GTA IV ships in April.

This is a pretty big story, and is getting major play in the news. At first I thought it was bigtime that Forbes put something out on it this morning, but now its all over the place. I suppose, as I think about it even more, this is actually pretty big news both inside and outside of the gaming community. As for us gamers: With the Blizzard/Activision merger and now this, are we seeing something similar to the consolidation of movie studios? That process has been around in film for a long time, but as the video game industry continually grows, more and more events like this could happen. Good or bad? What do you think? Will it effect the product?

We’ll be sure to keep you updated, but a great place to track every move is at Joystiq, where they’ll be updating this post throughout the day. You can also Track Take Two Interactive’s stock with Google Finance here. In the meantime, you can read up on business takeovers here. That is the first place that I am going…



Posted in News with tags , , , , , on February 4, 2008 by Pvt. Eyes

Here’s an excellent NY Times article about the increasing disconnect between best selling games and critical darlings. As the article states, this is by no means a bad thing. In fact it indicates a broadening of the market coupled by the development of really sophisticated niche audiences. I agree with most of this article, minus one instance where the author, Seth Schiesel, states that the mini-games of a title like Mario Party 8 are viewed as lame in the eyes of well-informed gamer. Well, I see where Schiesel is going, but this point could have been a bit more nuanced. Mario Party 8 is lame in the eyes of a well-informed gamer not because of the structure of the game or the fact that it has mini games, but rather, the game just plain sucks. The mini-game model can be fantastic, innovative and indicative of a really great game – just look at all the Wario titles.

For a look at the top 10 games of 2007, check out Need a hint on #1? It involves some cardboard armor.

PC game sales are low and lazy, according to everywhere on the internet. Because I like their website best I’ve cited Joystiq and Justin McElroy’s post, but really the numbers speak for themselves: PC Games account for only 14% of the 18-billion dollar plus video game industry. At first I was distraught and then I realized that the last game that I played on my PC was probably Warcraft 3, which I purchased from a midnight release party at a Fry’s Electronics in San Diego. Great times. But yeah, point is – I don’t play PC Games anymore. Around that time, I realized that my pc couldn’t keep up with the software it was trying to run. In fact, I think that era is marked by the fact that, for many PC gamers, constant updating of hardware was a big turnoff. Oh, that and I bought a Mac.

Don’t cry too much dedicated PC Gamers, apparently digital downloads are the wave of the future, the wave of the future, the wave of the future, the wave of the future…

Finally, Microsoft has put in a $44.6 billion bid for Yahoo! Inc. What will become of Literati?

Uncle Sam Mandates Consumption

Posted in News with tags , , , on January 26, 2008 by Pvt. Eyes

scroogeWhen America speaks, I listen. In this case, America isn’t even saying anything; she’s just giving me money. Apparently the economy is struggling, (though I wouldn’t know since I basically live out of a hotel) and even Second Life is on the ropes. Regardless, I’m super-ready to benefit from this “economic stimulus plan.”

I suppose that’s not directly gaming news, but just wait until you see what I spend this cash on. My Roth IRA is in its nascent stage, but as far I’m concerned, its got 40 years to sort itself out: this handout is going directly toward my gaming career. The best part is that I don’t even feel guilty about it since apparently this check is supposed to be taken to the bank asap.

Figuring out what I shall splash the cash on will come later (and perhaps in a later post if I ever get this check), though new instruments could be in store…