EA's Hostile Takeover Attempt and Its Impacts

Feature Article

Submitted on: 03/18/2008 by Erik Westfall

So the hostile takeover of Take-Two has begun. G4TV amongst other gaming news sources is reporting EA has made a blanket offer of $26 to all shareholders with a deadline of April 11, one day after Take-Two’s next shareholders' meeting. But shareholders aside, what does this mean for us, the sports gamers?

In a way, its impact has already begun to show. When Take-Two announced its release schedule, All-Pro Football 2K9 was nowhere to be found.

Obviously this wasn’t entirely related to the attempted takeover of the company, but EA’s impact is already manifesting itself and has to be in some way responsible for the cancellation.

All-Pro Football was an expensive game to produce, seeing former athletes like O.J. Simpson getting (and promptly giving away) $50,000 for his likeness to appear in the game. One of the main ways for Take-Two to create a successful title would have been to increase the quantity of legends in the game. Apparently they didn’t find it fiscally feasible at the moment.

Even if EA does complete the purchase, I can't see them continuing this title. While there is potential with their extra funding to make this title even better, EA Sports will still be dropping this franchise. This is in direct competition with Madden and short of turning this into its football version of Facebreaker, there just isn't enough difference to keep it running.

Has All Pro Football Seen its Last Day?

But what about the other franchises? Take-Two’s MLB 2K franchise, while on a down year this year according to review scores, is still a hot commodity for EA. Consider for a moment the fact that EA’s last MLB title was MVP 07. EA is not used to not having a game in the major four sports (or five if we’re counting soccer) and really can’t be happy about it.

The first thing we’d likely see on that front is an almost immediate announcement of MVP going back into development. Whether they released it this year or not would entirely depend on how much development has been done in anticipation of a merger -- most likely it would not release until next year though.

Like All-Pro though, MLB 2K would likely cease to exist. EA would want to support its own franchises and if that means they lose the 2K titles, well, then so be it.

2K Sports' NHL 2K is likely another title that EA has its eye on. While EA arguably surpassed NHL 2K this year, there are undoubtedly features in the game that EA would be ecstatic to include in NHL 09.

I'm noticing a trend here. The most likely course of events after the buyout of Take-Two would be the folding of 2K Sports into EA Sports. The titles which vary far enough from EA's titles will likely stick around, but by and large, most of the games made by 2K Sports as we know them would likely disappear.

But I know I’m missing titles and even features that EA might use to improve their games. I want to see what you, the reader, think on this issue. What changes might be made if in fact a merger does take place. Will Take-Two’s sports division get folded into EA’s or will we still see 2K titles on top of EA Sports titles? What changes will be made?

Member Comments

# 1 dazzo0007 @ 03/18/08 05:26 PM

"Obviously this wasn�t entirely related to the attempted takeover of the company, but EA�s impact is already manifesting itself and has to be in some way responsible for the cancellation."

Well, there has been no official word on the cancellation of the All-Pro Football 2K series...

# 2 ChaseB @ 03/18/08 05:28 PM

Well:

"As for last year's franchise debut of All-Pro Football, it apparently didn't make the cut. When asked about the absence of a football game on the company's release schedule, Take-Two execs said it had been taken off the slate, but they were continuing to weigh their options."

http://www.gamespot.com/news/6187563...stnews;title;3

That's about as close as you'll get in business speak to saying canned I would think.

# 3 bluengold34_OS @ 03/18/08 05:32 PM

I say "yes" there is no reason to keep any one sport title around that is already in the EA stable. They may steal the engine for 2 or 3 games, but it will not be marketed in any way at all towards a remembrance of 2k. I just can't see a positive upside for EA keeping NBA 2k9 or NHL 2k9, they really can only steal ideas and features, but it will still be coded by EA employee's and branded by EA....

# 4 goheat @ 03/18/08 05:32 PM

Quote:

Originally Posted by MMChrisS


	Operation Sports' Erik Westfall has posted an article discussing what some of the impacts of EA's hostile takeover attempt of Take Two is having on the 2k Sports line.

The link to the article isn't working for me...

# 5 dazzo0007 @ 03/18/08 05:51 PM

@ Slizeezyc

Well, you might have that interpretation. But, in my estimation, when they say they are "continuing to weigh their options", that certainly doesn't sound like a cancellation to me.

# 6 jmood88 @ 03/18/08 06:11 PM

We might as well get it out of the way:
"This is a good business move"

I hate EA and I hope it falls apart soon.

# 7 Sausage @ 03/18/08 06:18 PM

For us it means less choice in playing our favorite sports. It means soon we will be zombies to this company, thank goodness for Nintendo first party games. Pro Evolution 2008 Wii-this is what every developer should look at for making a fun and in-depth game. Peace.

# 8 brandonW @ 03/18/08 06:28 PM

what also could happen is that EA doesn't fold 2k. now befor you say you are crazy ea would never do that just read my argument. if ea folds 2k many gamer could possibly get upset. and as a result sale might be hurt. if on the other hand if 2k isn't that won't happen but instead a might over two flavours of sports games one for people who like the tradional EA style game and one for those like me who have grown to resent EA(even though i like some of their games) we might even see a return of the NFL in this sencario.

but in all likely hood EA will fold 2K and i hope that sony will add the former 2k staff to their sportsline.

# 9 jmood88 @ 03/18/08 06:35 PM

Quote:

Originally Posted by brandonW


	what also could happen is that EA doesn't fold 2k. now befor you say you are crazy ea would never do that just read my argument. if ea folds 2k many gamer could possibly get upset. and as a result sale might be hurt. if on the other hand if 2k isn't that won't happen but instead a might over two flavours of sports games one for people who like the tradional EA style game and one for those like me who have grown to resent EA(even though i like some of their games) we might even see a return of the NFL in this sencario. but in all likely hood EA will fold 2K and i hope that sony will add the former 2k staff to their sportsline.

You may not want to hear it but is crazy. It makes no sense for EA to make two competing games, pay for two different development teams, and market two games for the same sport. There are already 2k fans who are willing to buy EA games because they feel like they need to have a new game, EA would buy Take Two and absorb some of the 2k people and kill the company.

# 10 CS10029 @ 03/18/08 06:37 PM

Quote:

Originally Posted by brandonW


	what also could happen is that EA doesn't fold 2k. now befor you say you are crazy ea would never do that just read my argument. if ea folds 2k many gamer could possibly get upset. and as a result sale might be hurt. if on the other hand if 2k isn't that won't happen but instead a might over two flavours of sports games one for people who like the tradional EA style game and one for those like me who have grown to resent EA(even though i like some of their games) we might even see a return of the NFL in this sencario. but in all likely hood EA will fold 2K and i hope that sony will add the former 2k staff to their sportsline.

UUUhhhh......Come again....?

# 11 brandonW @ 03/18/08 07:03 PM

@jmood88

i don't agree with you that it would make no sense. it would make sense if EA thinks they would gain more profit by having two sports games instead of one. but i guess agree with you that EA would in all likely hood absorb 2k, i just hope that sony will continue their sport franchises.

# 12 yamabushi @ 03/18/08 08:50 PM

2K football, hockey and baseball will cease to exsist. That leaves the NBA2K team; with Live clearly an inferior product, EA's action on this will speak volumes as to their commitment to sports games.
Personely, I think the NBA2K team will be disolved as well, with no comp. for their own Live brand, why brother improving? Its EA or nothing for consumers. Hopefully in a year or 2 Sony, MS or maybe even activision will pick up the ball.

# 13 kingdevin @ 03/18/08 09:14 PM

I think EA WOULD profit from putting out variations of the same sport. If they absorb 2K and discontinue all 2K sports titles, many would refrain from purchasing b/c of limited choices. If they put out a variety (i.e. Madden, Arena football, Head coach) of games, they can sell to gamers that have a variety of tastes. Keep in mind that Corporations have been known to form subsidiaries and put out a competing product so that if you don't like product A then buy product B - yet all in all the Corp still profits either way. I believe that since 2K has a large following, it might be advantageous to keep the 2K games and its gamers as well. Its a win win strategy.

# 14 kenneth33 @ 03/18/08 09:18 PM

bottom line for the old gamers like myself and others who like choose.well it,s coming to an end if and are when it happens my gaming days may be over !!

# 15 jmood88 @ 03/18/08 09:21 PM

Quote:

Originally Posted by kingdevin


	I think EA WOULD profit from putting out variations of the same sport. If they absorb 2K and discontinue all 2K sports titles, many would refrain from purchasing b/c of limited choices. If they put out a variety (i.e. Madden, Arena football, Head coach) of games, they can sell to gamers that have a variety of tastes. Keep in mind that Corporations have been known to form subsidiaries and put out a competing product so that if you don't like product A then buy product B - yet all in all the Corp still profits either way. I believe that since 2K has a large following, it might be advantageous to keep the 2K games and its gamers as well. Its a win win strategy.

You do realize that they actually have to pay the 2k people, right? EA has been trying to be the only name out there for awhile, which is why they keep buying exclusive licenses for everything. They aren't going to buy 2k so that they could just continue making their games by themselves, people have shown that they will waste their money on a Madden game even if they think that it's not that great just so that they can play a new NFL game. EA doesn't need to put 2k games out if they buy Take Two.

# 16 bkfount @ 03/18/08 09:50 PM

Quote:

Originally Posted by dazzo0007


	@ Slizeezyc Well, you might have that interpretation. But, in my estimation, when they say they are "continuing to weigh their options", that certainly doesn't sound like a cancellation to me.

when APF isn't on the release slate, it's a bad sign. Add into that, the fact that EA has put out a hostile bid for Take Two. Even if APF is still being developed, they likely won't be able to put it out anyways, as they'll be bought out one way or another in even a few months.

For those thinking that EA will be fine having APF come out, Activision even said that Take Two is already asking for too much money, and that EA values them more than anyone else. EA wants to buy TT not only to get GTA and other IP's, but to rule the sports game market. They'll never allow 2k sports games to continue. Sad that some people can't see the writing on the wall.

# 17 dazzo0007 @ 03/18/08 10:06 PM

@ bkfount

Point taken, sir. Merely stating it isn't completely off the cards for now...

# 18 bkfount @ 03/18/08 10:25 PM

Quote:

Originally Posted by dazzo0007


	@ bkfount Point taken, sir. Merely stating it isn't completely off the cards for now...

yeah, I understand people have hope, but if it were coming out this year, they'd be more concrete on it. Even if they are waiting until a little after football season starts or even september or october sometime, at best, Take Two only has a handful of months until EA gets them.

I would be shocked if APF2k9 ever saw the light of day. At best, EA could use the idea to release some kind of NFL licensed NFL legends game, using the madden engine of course.

# 19 SeaNNyT @ 03/18/08 11:25 PM

I am not so much concerned about APF, because it wasn't that great. What does concern me is the NBA 2k franchise will most likely be dissolved.

# 20 dazzo0007 @ 03/18/08 11:52 PM

Quote:

Originally Posted by bkfount


	yeah, I understand people have hope, but if it were coming out this year, they'd be more concrete on it. Even if they are waiting until a little after football season starts or even september or october sometime, at best, Take Two only has a handful of months until EA gets them. I would be shocked if APF2k9 ever saw the light of day. At best, EA could use the idea to release some kind of NFL licensed NFL legends game, using the madden engine of course.

Yeah, I do happen to be one of those who do have hope. I really don't want to write APF off just yet.

I think you're right. You would think we'd hear more about APF 2K9 if there was gonna be another one. However, remember how infrequent and slim news was about 2K8? That is not to mention how long it took to actually get screens or any substantial information about the game. So, I don't know. I'm just saying...

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