UPDATE: EA Faces Challenge Of Keeping Take-Two Developers

CNN Money writes: "When Electronic Arts Inc. decided to "go hostile" in its efforts to acquire Take-Two Interactive Software, the video game giant took a gamble that it will be able to pursue such a deal without losing Take- Two's most valuable asset -- its game developers.

Hostile acquisitions are a rarity in the high-tech world because such deals run the risk of alienating the employee talent that is often the most valuable asset of the business being acquired. That is particularly true in the video game business, where a relatively small pool of game designers, artists and programmers play crucial roles in the development of hit game titles such as " Grand Theft Auto" and last year's surprise hit "Bioshock."

To make the Take-Two acquisition pay off, EA will need to secure the talent behind the publishers' top games. The risk in a hostile deal, analysts say, is that EA will be unable to communicate directly with these individuals to gauge their response."

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YoMeViet3966d ago

It's like buying Hooters but losing all the babes. EA may in the end buy a empty game studio and a name.

Cyrus3653966d ago

Still, there is value in controlling all the Sports franchises (Basically they'd have no competition in NHL, Basketball, and only competition from Sony MLB the Show series for baseball)....

And as well owning the property rights to Bioshock series, GTA series, amongst others...even if done by a totally different dev team is still pretty big.

sonarus3966d ago

yup. i am not too sure a lot of them will be interested in working with EA.

fenderputty3966d ago (Edited 3966d ago )

Could you imagine if this guy worked there ...

OOOH and BTW ... A pox on the walmart of gaming.

RealityCheck3966d ago

Totally agree with 1.1, at this point they just want to kill competition, secure franchises and exclusivity. Very Microsoft-like of them (like MS wanting to buy and gut Yahoo).

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Genki3966d ago

You can't buy dignity. Can't buy self-respect. Money won't replace pride.

Tempist3966d ago

The longer this drags on, the less likely it'll happen since this has been boosting the price of Take Two's shares.

Seriously however, do sports games make a big splash in the industry?

LastDance3966d ago

i think they do man... just on a guess.

Drekken3966d ago

Sports games are huge, especially football and Basketball

Cyrus3653966d ago

Well the madden serries whether it was on PS2 int he past or 360/PS3 now...Did huge business...

Tempist3966d ago

Why not just go out and play the games yourself pretending your the real life player?

Worked as kids.

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TruthBTold3966d ago

If EA is ever able of taking over TT then they might most likely pack up and leave to start another company and take their talent with them creating new games with the same style. Their previous games will loose the uniqueness to them because it will be someone else copying what they did before. I would like to know about the new development studio so I can support them. I support talent and passion not greedy take overs.

Lucreto3966d ago

What really ticks me off even though I dislike GTA is that they waited until the game was finished so they didn't have to fund it but they are going to get all the profits and the rights to the games.

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