What analysts and strategists are calling "unsubstantiated chatter" had a profound effect on EA stock today, rising 8.1 percent to $20.01 during Nasdaq trading this afternoon.

"There's talk that Microsoft might be interested in acquiring Electronic Arts. It's unsubstantiated chatter, but it's out there," said Frederic Ruffy, an options strategist at WhatsTrading.com in New York.

And sometimes being out there is more than enough. Microsoft shares also rose during the day, gaining 1.1 percent to $26.05, despite analysts claiming that such a move makes no sense whatsoever.

But Trip Chowdhry, an analyst at Global Equities Research, said Electronic Arts was not on Microsoft's "radar screen" based on his industry contacts. "Our contacts just don't see Microsoft buying Electronic Arts, no synergies whatsoever, and also not Microsoft's corporate primary focus right now," Chowdhry wrote in an e-mailed note.

A quick glance about the internet finds that analysts largely agree - this doesn't seem like a likely move. Still, we've reached out to Microsoft and EA alike, and will update the story once we receive any response.

UPDATE: We just received a comment from Microsoft. "Microsoft has no plans to purchase Electronic Arts." Clears that right up, now doesn't it?

Electronic Arts stock up on takeover talk-traders [Reuters - Thanks David!]

The lawsuit was filed by Prickett, Jones & Elliott on behalf of Take-Two shareholder Patrick Solomon on Friday, March 7th of 2008, naming both Take-Two Executive Chairman Strauss Zelnick and Chief Executive Benjamin Feder. Solomon objected to the company's unwillingness to consider EA's $26 per share offer, which at the time (and currently) was much more than the company's shares were trading for.

The settlement agreement grants additional disclosure to Solomon, but does not include any monetary damages. Take-Two plans to oppose any request for fees and legal expenses, which its insurance will cover if they are indeed awarded.

So let's hear it for a big old waste of time and money!

Take-Two in pact to settle shareholder suit over Electronic Arts deal [MarketWatch via Gamasutra]

At the time, Namco Bandai already had deals to score up to 70% of the company, with plans to go for full ownership. As of this morning, they'd bought 95.02% of D3's company shares at $628 a pop for a total buyout value of $12.55 million, according to Japan's Nikkei newspaper.

D3 Publisher's Publicity Manager, Tamara Sanderson Low, emailed Kotaku the following statement:

Bandai Namco Games, owned by Bandai Namco Holding Inc, plans to acquire 100% of D3, Inc., and its subsidiaries D3Publisher of America and D3Publisher of Europe. D3Publisher operations will remain unchanged at this time. Development of our current and unannounced titles is ongoing and will move forward as planned. D3Publisher is thrilled to join forces with Bandai Namco Games to further strengthen their position in the US and European marketplaces and continue to make quality games that gamers will enjoy.

I guess the era of hostile takeovers is gone, what with the depression and stuff. Does this mean we'll be seeing Puzzle Quest: Naruto next?

Namco Bandai To Acquire Game Developer D3 [Nikkei - subscription required]

Eidos management has been in favor of the Square Enix buyout since the Japanese developer and publisher first made it public early last month. This timeline is just another in a long line of steps taken to convince the shareholders that this is the right move to make.

Here's how things will go down:

March 26th: Shareholder vote to approve the buyout. Hopefully the vote yes.
April 21st: Trading of Eidos stock is halted, with the de-listing of said stock occuring the next day.
May 6th: Square Enix owns Eidos fully, everybody parties until the pass out.

Or something along those lines.

Of course the shareholders could still vote down the buyout, but with the terms Square Enix is offering, we see no reason why any sane person would.

Square Enix and Eidos agree buyout terms [MCV]

Square Enix publicly revealed their offer to Eidos earlier this month, and since then stockholders have been tripping over themselves to show their support for the deal. Warner Bros. has already pledged their 20% stake in Eidos to the takeover, and now Insight Investment Management and Pioneer Investment Management have sold their 11.13% share of the company to Square Enix. In other words, things are looking very god for Square Enix.

According to Square Enix, it now has "irrevocable undertakings to vote in favour of the resolutions to be proposed at the Court Meeting and the EGM in respect of, in aggregate 84,947,489 Eidos Shares representing 32.23 per cent of the existing share capital of Eidos."

The takeover still hangs on a vote at Eidos' stockholder meeting next month, but it's pretty much a done deal at this point. Square Enix is slowly eating Eidos, and Eidos likes it.

Square acquisition of Eidos picks up speed [GamesIndustry.biz]

According to a press release issued today by Namco Bandai, the company seeks to turn D3 into a full subsidiary, with agreements already having been reached with various shareholders to purchase a 70% interest in the smaller company and an eye on obtaining the full 100%. The release indicated that the need to work together as one group company in order to survive and expand in the harsh economic environment as the driving force behind the buyout.

The release highlights the potential gains for both companies from such a union, with D3 gaining access to Namco properties to use in their line of casual games, while also benefiting from the company's anime, toy, and amusement facility business units.

It sounds like a good fit to me, and Namco Bandai doesn't seem to be taking no for an answer, so it's a pretty good bet that D3 will soon be welcoming their new Namco overlords. Just keep the Puzzle Quest coming and nobody gets hurt.

Bandai Namco plans D3 buyout [Adriansang.com via Gamasutra]

Closing at only 14 pence yesterday, shares of Eidos stock on the London Stock Exchange are currently trading at 31.75 pence, or .25 pence below the 32 pence per share Square Enix has offered to buy out the company in their proposed £84.3 million bid for the troubled Tomb Raider publisher. The market opened today with a sale of 178,000 shares selling at 27 pence per share, with more than 16 million shares changing hands as of this writing. The sheer volume of trades is staggering, especially when considering the highest volume Eidos saw through the whole of last year was

The jump is of course a direct result of Square Enix's bid, as both individuals and arbitrageurs - companies that buy large amounts of stock in order to secure small but high-volume profit with minimal risk- rush to grab as much Eidos stock as possible before the deal goes through.

While the deal isn't 100% in the bag, it's a much safer bet than investing in Take-Two Interactive stock turned out to be following Electronic Arts' failed takeover bid last year.

As an outsider to the financial world, it's a fascinating process to watch. One company makes an offer on another, and then the stock prices rise to meet that offer in the hopes of making a small profit. Once you start to make sense of the charts, it really is quite interesting. Head over to the London Stock Exchange website to experience the hot stock drama.

The rumors originate with The Inquirer, which cites well placed sources saying that such a purchase is not only possible, but imminent, as in "any second now". Our take on the rumor? Very iffy. These sort of stories generally don't just pop up one day, though of course Valve's Doug Lombardi has stated that they're willing to be bought. We've contacted Valve for comment and will let you know as soon as we hear back.

Google to buy Valve [The Inquirer]

"The actions of the Take-Two Board may increase the risk for their stockholders by delaying a potential transaction," said Owen Mahoney, Senior Vice President of Corporate Development at EA. "We continue to believe that our $26.00 per share offer price is full and fair, and that a transaction between Take-Two and EA is the most compelling combination financially, strategically and operationally for all parties."

In response to Take-Two's actions, which include moving the annual stockholder meeting to April 17th, EA has amended its tender offer, extending the offer from April 11th to April 18th, under condition that T2's board either redeem the stock purchase rights issued with the stockholder rights plan, or they are assured the rights have been invalidated, at least in regards to their takeover bid.

I layman's terms? Take-Two laced their stock with poison. EA modified their offer to eliminate said poison. Take-Two moved their stockholder meeting past the offer deadline, and EA extended the offer deadline to compensate. It's very much like watching a chess game - you care about the outcome, but the match itself is boring and a bit confusing unless you understand exactly how the game works.

EA Amends Take-Two Tender Offer and Extends Expiration Date to April 18, 2008

REDWOOD CITY, Calif.—(BUSINESS WIRE)—Electronic Arts Inc. ("EA") (NASDAQ:ERTS) today announced that it is amending its tender offer for all of the currently outstanding shares of common stock of Take-Two Interactive Software, Inc. ("Take-Two") (NASDAQ:TTWO). The amendments are in light of the actions publicly disclosed by Take-Two on March 26, 2008, including its adoption of a poison pill and change to the date of its 2008 annual meeting of stockholders to April 17.

The principal amendments to the offer include:

* EA has added a condition to its offer requiring either (1) that Take-Two's Board of Directors redeem the preferred stock purchase rights issued as a result of Take-Two's adoption on March 24, 2008 of the stockholder rights plan, or (2) that EA be satisfied that such rights have been invalidated or are otherwise inapplicable to its acquisition of Take-Two.
* EA has extended its tender offer for all of the common stock of Take-Two until 11:59 p.m., New York City time on Wednesday, April 18, 2008, unless further extended. The offer was previously set to expire at midnight, New York City time, on April 11, 2008.

"The actions of the Take-Two Board may increase the risk for their stockholders by delaying a potential transaction," said Owen Mahoney, Senior Vice President of Corporate Development at EA. "We continue to believe that our $26.00 per share offer price is full and fair, and that a transaction between Take-Two and EA is the most compelling combination financially, strategically and operationally for all parties."

EA commenced on March 13, 2008 its all-cash tender offer to purchase Take-Two shares for $26.00 per share, which represents a 64% premium over Take-Two's closing stock price on February 15, the last trading day before EA sent its revised proposal to Take-Two.

As of 5:00 p.m., New York City time, on Thursday, March 27, 2008, approximately 5,000 shares of Take-Two had been tendered in and not withdrawn from the tender offer.

Our Board, after careful review, has unanimously determined that Electronic Arts' offer continues to provide insufficient value and remains opportunistically timed to capture the value of the upcoming Grand Theft Auto IV launch at the expense of our stockholders.

TAKE-TWO INTERACTIVE SOFTWARE BOARD REJECTS ELECTRONIC ARTS' OFFER AS INADEQUATE Recommends Stockholders Not Tender Shares at $26 a Share

Company to Begin a Review of Strategic Alternatives After Release of Grand Theft Auto IV

Company's Presentation at Bank of America Conference on March 26th at 2:40 pm ET to be Webcast

New York, NY— March 26, 2008 —The Board of Directors of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced that it has thoroughly reviewed Electronic Arts Inc.'s (NASDAQ: ERTS; "EA") unsolicited conditional tender offer with the assistance of its financial and legal advisors and unanimously determined that the $26.00 per share cash offer is inadequate in multiple respects and contrary to the best interests of Take-Two's stockholders. Accordingly, the Board recommends that stockholders not tender any of their shares to EA. The basis for the Board's unanimous decision is set forth in Take-Two's Schedule 14D-9 filed today with the Securities and Exchange Commission.

Take-Two also announced today the following actions:

Filed a Solicitation / Recommendation Statement on Schedule 14D-9 with the SEC containing the Board's unanimous recommendation that stockholders reject Electronic Arts Inc.'s offer of $26.00 net per share in cash as being inadequate and not in the best interests of stockholders

Filed a supplement to the proxy statement with the SEC to moot any claims alleged in a class action lawsuit that the proxy statement was misleading and incomplete

Adopted a stockholders rights agreement and a Certificate of Designation for a new class of Series B Preferred Stock. The rights agreement will be outstanding for 180 days

Changed the date and time of the 2008 Annual Meeting to Thursday, April 17, 2008 at 6:30 p.m. (New York City time)

Amended Bylaws to provide for a new extended period of time for stockholders to nominate persons for election to the Board and propose business to be considered at the 2008 Annual Meeting

Amended employment agreements with Lainie Goldstein (CFO), Seth Krauss (EVP and General Counsel) and Gary Dale (EVP)

Participation in investor presentations, including the Bank of America 2008 Smid Cap Conference

Suspended the acceleration of outstanding restricted stock awards under the Company's Incentive Stock Plan until such time that, among other things, payment is accepted for more than 50% of the Company's then outstanding shares in a tender offer

The Board also confirmed that it will explore alternatives to maximize value for stockholders, which may include a business combination with third parties or with EA, remaining independent, or other strategic or financial alternatives that could deliver higher stockholder value than the current EA offer. The Board has commenced a process for considering strategic alternatives in order to be prepared to engage in discussions with any parties, including EA, interested in a strategic business combination following Take-Two's release of Grand Theft Auto IV, scheduled for April 29, 2008. The Board continues to believe that the Company will be best positioned, from the perspective of both value and timing, to conduct such a review at that time. The Company has received indications of interest from third parties with respect to possible business combination transactions involving the Company since EA's announcement, but no substantive discussions have yet occurred. To facilitate its efforts to explore alternatives to maximize stockholder value, the Company has begun to assemble the materials necessary for interested parties to conduct due diligence. Prior to the release of Grand Theft Auto IV, the Company is willing to enter into confidentiality agreements on customary terms and to engage in preliminary conversations with interested parties, including EA.

Strauss Zelnick, Chairman of the Board of Take-Two, commented, "Take-Two's Board of Directors and senior management team were put in place less than one year ago with one mandate: maximize stockholder value. We have maintained a single-minded focus on that goal ever since and it remains the guiding principle in every decision we make with regard to Take-Two. Our Board, after careful review, has unanimously determined that Electronic Arts' offer continues to provide insufficient value and remains opportunistically timed to capture the value of the upcoming Grand Theft Auto IV launch at the expense of our stockholders."

"With one of the strongest portfolios of intellectual property in our business, a superb creative and business team, and a revitalization plan that is beginning to deliver results, Take-Two is uniquely positioned to create stockholder value in an industry that is enjoying the highest growth rates of any entertainment medium. We are effectively working toward a process to review all available options to maximize this value, either as an independent company or in combination with a third party, and are open to beginning informal discussions starting now. Our stockholders' interests would hardly be served by accepting an offer from EA at the wrong price and the wrong time. As a result, the Board recommends that stockholders not tender any of their shares to EA."

Mr. Zelnick will be presenting at the Bank of America 2008 Smid Cap Conference on March 26, 2008 at 2:40 pm Eastern Time. To listen to the audio portion of the presentation live, log onto http://ir.take2games.com. A replay of the presentation will be archived and available following the presentation at the same location.

Reasons for the Board's Recommendation

In arriving at its decision, the Board of Directors considered numerous factors, including but not limited to the following:

· EA's Offer price is inadequate and substantially undervalues the Company. The Board of Directors has determined that the EA Offer price is inadequate and substantially undervalues the Company's established position in the interactive entertainment software market, robust and enviable stable of game franchises, extensive portfolio of owned intellectual property, creative talent, strong consumer loyalty and a growing sports business. In particular, the EA Offer does not adequately compensate stockholders for the Company's valuable franchises, which include more than 20 brands (in addition to Grand Theft Auto) that have sold one million or more units each, of which more than half are internally owned and developed and therefore deliver higher profit margins than licensed products.

· The Company's financial advisors, Bear Stearns and Lehman Brothers, have each delivered an opinion stating that, as of the date of such opinion, the EA Offer price was inadequate, from a financial point of view, to the stockholders of the Company.

· The Company's directors and executive officers believe that the EA Offer price is inadequate and do not intend to tender their Shares.

· The Board of Directors is committed to exploring strategic alternatives to maximize stockholder value and may be able to find a better alternative to the EA Offer. After the Company's release of Grand Theft Auto IV, scheduled for April 29, 2008, the Board of Directors is committed to exploring alternatives to maximize stockholder value, which may include a business combination of the Company with third parties or with EA, remaining independent, or other strategic or financial alternatives, that could deliver higher stockholder value than the EA Offer. The Board continues to believe that the Company will be best positioned, from the perspective of both value and timing, to conduct such a review at that time. The Company has received indications of interest from third parties with respect to possible business combination transactions involving the Company since EA's announcement, but no substantive discussions with respect thereto have yet occurred. To facilitate its efforts to explore alternatives to maximize stockholder value, the Company has begun to assemble the materials necessary for interested parties to conduct due diligence. Prior to the release of Grand Theft Auto IV, the Company is willing to enter into confidentiality agreements on customary terms and to engage in preliminary conversations (not in the Company's view amounting to negotiations) with interested parties, including EA. The Board of Directors believes that tendering Shares into the EA Offer before the Board of Directors and its advisors have had the opportunity fully to explore alternatives to the EA Offer could preclude its ability to effect an alternative transaction that could provide superior value to the Company's stockholders.

· The timing of the EA Offer is opportunistic. The EA Offer is opportunistic and has been timed to take advantage of the upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the interactive entertainment software industry and the Company's biggest selling and most profitable franchise. EA launched an unsolicited bid for the Company even though the Company had extended an offer to negotiate with EA immediately following the release of Grand Theft Auto IV and, subject to the fiduciary duties of the Board of Directors, offered not to negotiate with any other third parties in the interim without first contacting EA. The Board of Directors believes the full commercial potential of the game will not be evident until after its release, and that the EA Offer was timed to capture the value of that anticipated commercial success at the expense of the Company's stockholders.

· The EA Offer does not reflect progress in the Company's revitalization efforts. The Offer price does not reflect the significant progress the Company has made in its revitalization efforts since June 2007, including the implementation of a more streamlined and efficient operating structure, a cost cutting initiative that is expected to achieve annualized savings of at least $25 million and a more disciplined product investment review process. Benefits of the revitalization plan have yet to be recognized fully in either the current stock price or in the Offer price.

· The EA Offer does not reflect the Company's potential synergy value that a proposed combination with EA would create. The EA Offer does not compensate the Company for the significant potential synergy value that the proposed combination would create. EA has been unwilling to estimate publicly the synergy potential but has acknowledged that there is significant synergy potential. Potential synergies related to a proposed combination include: realizing a sales uplift as a result of a broader reach of distribution infrastructure; leveraging investments in online, wireless and other evolving platforms; optimizing sports offerings; and reducing sales, general and administrative costs significantly. Certain equity research analysts concur with this point of view and have estimated that EA would realize approximately $50 million to $210 million in synergies per year following completion of a transaction.

· The EA Offer does not properly reflect the Company's business, financial condition, current business strategy and future prospects. The Board of Directors believes that management's and the Board of Directors' understanding of and familiarity with the Company's business, financial condition, current business strategy and future prospects has not been fully reflected in the Company's results of operations or Share price. The Company's management and Board of Directors remain entirely focused on generating the maximum value for stockholders. Stockholders elected new senior management and members of the Board of Directors less than one year ago because of this team's commitment to, and track record of, creating stockholder value, and industry experience. The Board of Directors believes that the Company's senior management will be able to create stockholder value meaningfully in excess of the EA Offer price through the continued execution of the Company's current revitalization plan and business strategy.

· The consideration offered by EA is taxable. The consideration offered by EA would in general be taxable to the Company's stockholders.

· The Offer is highly conditional, which results in significant uncertainty that the Offer will be consummated.

Stockholders Rights Agreement

Take-Two also announced today that its Board of Directors has adopted a Stockholders Rights Agreement to protect stockholders against, among other things, unsolicited attempts to acquire control of the Company at an inadequate price for all stockholders or are otherwise not in the best interests of Take-Two and its stockholders. The Stockholders Rights Agreement has been adopted in response to EA's unsolicited tender offer to acquire all of Take-Two's outstanding shares of common stock for $26.00 per share in cash. The Board of Directors has committed to redeem the Rights distributed pursuant to the Rights Agreement 180 days after adoption of the Agreement.

Under the Stockholders Rights Agreement, the rights will become exercisable if a person becomes an "acquiring person" by acquiring 20% or more of the common stock of Take-Two or if a person commences a tender offer that could result in that person owning 20% or more of the common stock of Take-Two. The Stockholders Rights Agreement will not apply to existing stockholders who own 20% or more of Take-Two's existing common stock, unless and until they acquire an additional 2% of Take-Two's outstanding common stock.

Mr. Zelnick commented, "We have adopted this short-term Stockholders Rights Agreement in order to guard against a takeover by EA at the current, inadequate price. We believe the Rights Agreement will ensure that the Take-Two Board has adequate time to consider all strategic alternatives for maximizing value for Take-Two stockholders. The Agreement will not, and is not intended to, prevent a takeover of the Company on terms that are fair to and in the best interests of all stockholders."

Amendment to the Amended and Restated By-Laws of the Company

Take-Two also filed with the SEC on a Form 8-K dated March 26, 2008 an amendment to the by-laws of the Company. Specifically, the Board of Directors amended the by-laws of the Company to provide for a new period of time for stockholders to be able to nominate persons for election to the Board of Directors or to propose any business to be considered at the upcoming Annual Meeting. The period of time begins with the public announcement of the amendment to the by-laws and ends on April 15, 2008. To extend the period of time, the date of the Annual Meeting has been postponed from April 10, 2008 to April 17, 2008.

Further, in addition to stockholders of record on the record date (who currently are entitled to put forth a nomination or proposal), the Company will accept nominations and proposals from any person who was a stockholder of record or beneficial owner of Shares at any time between the record date and April 15, 2008. Finally, if a stockholder of the Company provides notice that it requires additional time to nominate persons for election to the Board of Directors or to propose business to be considered at the Annual Meeting, the Board of Directors will consider in good faith a request to adjourn the Annual Meeting for a reasonable period of time, not to exceed 30 days. The by-law amendment became effective immediately upon its approval by the Board of Directors.

Bear Stearns and Lehman Brothers are acting as financial advisors to Take-Two and Proskauer Rose LLP is acting as legal advisor.

For more information, please visit www.taketwovalue.com.

"We expect that in order to save face, Take-Two management will withdraw its demand that any discussions wait until after the launch of GTA IV, and we think that management will engage in discussions with EA,"

GTA IV to sell 9m units, ship 6m in first week [GamesIndustry.biz]

While most of the call repeated what John Riccitiello told us in an interview on Sunday, they also had Warren Jenson, EA's Chief Financial and Administrative Officer, on the line to talk about the potential impact the purchase might have on both companies. It's quite interesting, delving into the possible future of Take-Two's IPs and such.

As we already knew, this offer actually started with talks back in December and included a slightly smaller offer before coming to a head over the weekend. Jenson also reiterated just how good a deal it will be to Take-Two shareholders, pointing out that EA believes that pretty soon no one, not even EA, will be willing to pay this much for the company.

But the most interesting part of the call seems to come when Jenson outlines why the deal is a winner for EA.

• There is significant opportunity to drive operational synergies. We would expect synergies in the corporate and publishing organizations.
• We can help increase the sales of Take-Two's titles and bring their IP to new platforms - by leveraging EA's global packaged goods, online and wireless organizations.
• We would add incredible talent to EA's creative team. This deal brings together a wealth of industry talent - which can blossom under our decentralized label structure.

So the way I read that, it's two pluses and one minus. On the positive side, as Fahey already pointed out, EA could perhaps blend some of the two companies franchises to create some really interesting titles. They could also perhaps get some very talented people to work on other label's games. Both have some interesting potential.

Then they drop the leveraging bomb. Was it really necessary to point out the possibility of great games like Grand Theft Auto and BioShock going mobile? (Yes, I know there's already a BioShock cell game, but it's still depressing to think about.)

Final Call Script [EA Take 2]

Our previous coverage:
EA CEO/ Take-Two Chairman Talk Take Over Bid
The Take-Two Letters: EA Rejected
EA or Not EA: The Take Two Question
Take-Two Stock Jumps 47% In Wake Of EA Proposal

Take-Two Interactive on Yahoo Finance [Yahoo]

What EA Would Gain

First, let's put things into perspective from a game standpoint. What games are we talking here? Well EA would of course get Rockstar, which means Grand Theft Auto would be theirs, along with Midnight Club and Manhunt - though at this point it's probably best to toss that one out the window. Then there's 2K Games, which would give them BioShock and the upcoming games Mafia 2 and Borderlands - not a bad haul. EA would also suddenly own Firaxis - and thus every game with a Sid Meier in front of it - Civilization, Pirates, etc. That's an awful lot of property there, isn't it, and that's not even considering the 2K Sports situation, which brings us to...

The Cons

2K Sports No More - EA certainly isn't going to compete with themselves, are they? I see no reason for their to be a 2K Sports label anymore when EA Sports would do so nicely. This means whatever is left of the 2K Sports games - NBA, NHL, MLB, and College Hoops - gone. Remember how we worried when EA announced they had signed an exclusive deal with NFL? This would wipe out their major competition in one fell swoop, while filling in a few holes with games like Top Spin. Not good.

Attack of the Sequels 2008 - A Grand Theft Auto game right now comes along every few years, completely knocks us on our asses and then goes back to the drawing board, lurking in the shadows until they are damn well ready to knock us on our asses again. Can you imagine what EA would do with this franchise? Maybe not a new one every year, but spin offs, alternate reality versions, etc. With the resources at their disposal, we'd see GTA everywhere - even moreso that we will this April - until we are completely sick of it. Then we'll see it some more. In our earlier interview with Riccitiello, the EA CEO addresses this concern by pointing out last year's reorganization, which placed greater emphasis on the developers over the EA brand, but I cannot honestly see how they could resist milking GTA for all it's worth.

Goodbye Free Downloadable Content - Remember that nice chunk of free DLC Take-Two released for BioShock at the end of last year? How much do you think EA would have charged for it? My guess? More than free. I'm imagining new car packs for Grand Theft Auto for 500 points a shot here. Maybe even some costly DLC that makes some of those EA Sports titles play like their often superior 2K counterparts! That would just be completely awesome.

Lower Quality Standards - Aside from some of the issues with BioShock, Take-Two developers generally take their time with their products, making sure everything is polished to a fine shine before passing it onto the consumer. EA isn't so bad when it comes to quality, though nowhere near Take-Two standards. A bigger company with strict deadlines makes for mistakes...it happens.

GTA: Brought To You By Axe Body Spray - Simply put, EA believes in in-game advertising. Not just signs, but product placement in every location possible. From road signs to the brand of cell phone your character uses, the clothing he or she wears and the cars he or she drives. Imagine Grand Theft Auto with all the cute, fictional radio ads replaced with advertisements for real-world products. Imagine stopping by Pizza Hut to replenish your health before heading off to Old Navy to pick up a fleece hoodie. Imagine hell. Eerily similar, yes?

That's plenty of negative points, but what about the positives?

The Pros

Console Exclusive No More - This might be a mark in the cons category for many of you who still believe having a game only on your console somehow empowers you to be a dick in forums and blog comment sections, but I see this as a good thing. I own all three consoles, but I know plenty of people who don't. People who sunk all their cash into a PS3 and then sit around reading all of our stories gushing over BioShock before curling up in the corner and crying themselves to sleep. EA doesn't like console exclusives. EA would launch the next GTA for all consoles, including the Wii, DS, PSP, and mobile phones.

Jack Thompson Versus EA - I would absolutely love for Jack to send a threatening letter to EA lawyers regarding a violent game release. They would devour him whole, and then make a game about it. Take-Two likes to play footsie with him because of the publicity he generates I'm sure, but EA don't play that.

BioShock and System Shock - Having both of these franchises under one company could prove to be incredibly awesome. Imagine a Victorian steampunk BioShock sequel with ties to a brand new System Shock title? I know, two different franchise, two different realities, but hell. I can dream. I just think it would be nifty to have the two universes click together somehow.

The Verdict

So, what did I miss? As far as I can see that's five cons to 3 pros, and honestly that last pro was a bit of a stretch. Do I think Take-Two should allow EA to purchase them? No. I believe that Take-Two has the strength to carry on without EA interference. With games like GTA IV, Mafia 2, and Borderlands coming soon, as well as the closest thing EA has to competition in the sports arena, I don't think this is necessary at all, and from a gamer standpoint I think it would hurt Take-Two's properties more than help.

Now on the other hand, were I a shareholder, the offer would sound mighty, mighty tempting to me right now...which is of course EA's plan. Here's hoping it doesn't pan out, and if it does...here's hoping I am wrong.

The original poster started the discussion with the following:

I found out this afternoon that Rhino has been bought out by Gamestop. It was announced to the Store Managers this afternoon. Starting January 14th, Rhino's will be converted to Gamestops. [...] There is a meeting in Chattanooga tomorrow for all the Rhino Store Managers to let them know how the transition will take place.

Another poster later followed up with:

As an ex-Rhino assistant manager, I can confirm that the stores did a somewhat-unnecessary overhaul of fixtures and layouts a few months back that mimicked the GS/EB setup. Price stickers went to the same format as well. The buyout makes perfect sense all around.

With no formal announcement currently available from either company, we'll call it rumor for now, but expect to hear more clarification soon. Michael McWhertor

Major Bad News for Rhino Shoppers - Rhino Bought by GameStop [Cheap Ass Gamer Forums]