Financial worries take their toll on gaming


Few industries are immune to market troubles, and with the recent implosion of Merill Lynch and Lehman Brothers, even the gaming industry has felt the effects. Edge reports that investor confidence is already dropping in response to Monday’s changes leading to losses for a number of major game companies. Activision Blizzard, EA, and Take-Two all reported losses on Tuesday.

Analysts, as a whole, however, remain optimistic, with Wedbush Morgan analyst Michael Pachter asserting that, in the long term, recent market worries shouldn’t have too much of an effect on gaming companies. Analysts are also saying that one of the causes of EA and Take-Two’s stocks falling is the recent disitegration of talks between the two companies.