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Tuesday, May 20, 2008 | 10:51am
Grand Theft Auto 4 Sets Record Amid EA Takeover
The Official Sales Numbers are in! Buyout of company still on Horizon.
The world’s most lucrative launch in video game history belongs to Take-Two Interactive’s Grand Theft Auto 4. The latest GTA installment sold 6 million copies worldwide, bringing in more than 500 million dollars. After spending a reported record 120 million dollars on research and development, Take-Two more than quadrupled their initial investment in 7 business days.
This market success prompted Take-Two to halt a proposed takeover of their company to rival software giant Electronic Arts for a reported offer of 2 billion dollars. EA is the world’s number one video game software publisher, and intends to tighten it’s stranglehold on the game software industry. Take-Two claims the price is too low considering the sales figures from GTA4 have yet to be financially accounted for, and doesn’t account for the licensing fees for the recently accounted movie deal for its critically acclaimed “BioShock” game. Take-Two is urging shareholders to hold off and reject the offer to wait for second quarter reports to roll in.
Worth noting to many gamers alike:Take-Two Interactive currently owns Visual Concepts and Kush Games. Both game studios are responsible for the majorcompetition for EA’s sports division, known as 2K sports. If this buyout does indeed occur, EA will now own 2K sports and will have a true monopoly on sports video games in the world. Many gamers have relied on 2K sports for pushing traditional EA franchises such as John Madden Football and NBA Live toward such high standards with competition such as the NBA 2K, MLB 2K, and NHL 2Kseries. Without at least two major publishers developing licensed professional American sports games against each other, an era of EA mediocrity may be upon us. EA has already purchased the exclusive rights to create the only NFL licensed game in “Madden”. Will a similar NBA and NHL or MLB licence be soon to follow?
Take-Two’s stock fell yesterday 19 cents with the news, while EA dropped $1.14. The market is holding while these proceedings iron them selves out and a true view of both companies is clear. In the wake of these reports, Highbrid will continue to bring updates on the unraveling ofwhat may become a hostle corporate take over.
FILED IN Business & Marketing, Entertainment, Need to Know, News, Sports, Technology, Video Games
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thats wzup, bastards need to wrap some vans
Great post. I think now that the GTA4 is out they takeover will go through. There had been a lot of speculation that EA felt the company was going to make so much on the Grand Theft release that the franchise was the sole purpose for the buyout. There may be some truth to those rumors given the numbers. We’ll see.