Thursday was another bloody day on Wall Street and stocks of video game publishers did not escape the carnage.
As reported by GameSpot, the likes of Activision, THQ, EA and Take-Two have seen their share price drop between 28-40% in recent weeks:
Worst off is Take-Two Interactive, which has lost 40 percent of its share price in a month, going from $21.77 to $13.01. Besides overall market woes, the decline was also in large part due to Electronic Arts' abandonment of its Take-Two takeover bid, which was $26 per share at its highest point...
Despite the apparent game-industry-wide drubbing, analysts are confident the game industry will fare better in a recession than other sectors. "If people aren't traveling and stay home, what are they going to do? They'll want relatively cheap home entertainment," David Gibson, senior analyst at Macquarie Research Equities, told the Wall Street Journal. "[And] core gamers will buy the titles when they come out, regardless of economics."
GP: If you're a T2 shareholder, we've gotta wonder how you're feeling about passing on EA's 25.74 takeover offer.