Hollywood Reporter: Electronic Arts' stunning $2 billion all-cash offer for Take-Two Interactive Software is more evidence that the game industry is moving into the mold of other entertainment businesses, with a handful of players and a focus on producing blockbuster hits.
"You can certainly call this the demise of the middle class in the video game industry," said Michael Goodman, Yankee Group's director of digital entertainment. "With what it costs to develop blockbuster titles and the risk level involved, there is no middle ground anymore."
But Goodman said one great franchise simply isn't enough in today's climate. "Does Take-Two have the scale to be successful long term? Probably not," he said. "You need multiple major franchises now. As great as 'Grand Theft Auto' is as a franchise, all it takes is one bad game and you're done."