Monday, September 15, 2008

EA-Take Two bidding war finally over

It was announced that the negotiations between EA and Take-Two is finally over. For people in the non-gaming industry and want a easy comparison, think of the two largest donut companies in the U.S.: Dunkin Donut and Krispy Kreme. This ongoing saga would be like if Dunkin Donuts asked to buy Krispy Kreme for a few billion dollars. Anyway back to the story. EA is home to the Madden franchise and are also home to the Need for Speed franchise while Take-Two owns the 2K division which makes games such as their games in the 2K sports series or for the non-sports gamer, they own Rockstar which makes the Grand Theft Auto games. Both companies have had their great share of games, no question. When I first heard that EA wanted to buy Take-Two, I, along with many gamers, were disappointed. A takeover of this size would, in my opinion, hurt more than help the industry. For example, 2K for years has been in competition with EA for top sports game every year. When EA took the NFL license and subsequently when 2K took the MLB license, I think it hurt both sides. Having one company make a game in one sport means that the company does not need to make a great game; as long as it's out yearly, it will still make money. Competition will only encourage great games because that company wants to stand out on top. Plus with the merger of Activision and Blizzard earlier this year, EA is no longer the largest video game company and EA probably feels bad about that. However not merging was for the best. Now just because the merger fell through, it doesn't mean that 2k will stand pat. They may try to acquire smaller companies. This happens all the time because a big company like Take-Two would more likely save a small company or developer from bankruptcy and who doesn't like bankruptcy? As for EA, we'll see what they do. As it stands right now, the rivalry, per se, between Take-Two and EA has only intensified and it doesn't look like it will end anytime soon which, as I said before, is a welcome and good thing.

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