Take-Two Stocks Fall as Gaming Industry Shares Rise
Poor Take-Two. It’s been a rough couple of years for you. From the Hot Coffee fiasco, to the Manhunt 2 lawsuits, to the recent announcement of the GTAIV delay. Could this be the signal of the end? If Grand Theft Auto IV does not live up to expectations, wouldn’t that put the nail in the coffin? It would seem so.
Following their announcement of the GTAIV delay, Take-Two stocks have been doing a belly-flop. They closed down to $13.50 a share, while as a week ago, shares were selling for $16.51. For those of you who have yet to work for a publicly traded company, those little numbers make a HUGE deal. A drop of 5% in stock value can lead to countless layoffs and corporate restructuring. Take-Two has dropped 19% in a week.
What is bad news for Take-Two seems to be great news for the rest of the industry, as shares of all other major gaming developers are up. EA, Activision, THQ, and Konami all closed higher than expected this week. What other surprises will this holiday season bring?