EA, Take Two, Activision Take Stock Market Loss In Violent Video Game Fallout
There has been much consternation in recent weeks about the effects of violent video games - much more than usual. While some of it has been level-headed (seriously, read that link; it's excellent, and should be required reading for anyone interested in the topic), much of the response has been shrill and reactionary. This is no surprise, given the 24-hour news cycle's propensity towards simple narratives and fear-based marketing.
However, rich people who can afford to gamble on the stock markets these days (and, depending on how they're managed and if you can afford them, your bank investments) are feeling the consternation financially in the form of up-to double-digit stock price losses for major video game manufacturers. Activision and EA each saw an eight percent drop in their stock prices last week, while Take-Two saw a fifteen percent drop. These losses are being blamed directly on the cultural aftermath of the Newtown massacre in the United States as analysts fear for these companies' 2013 sales outlooks and the potential for a sustained backlash against violent video games.
Whatever your opinion on the supposed link between violent video games and real-world violence (full disclosure: I have written ad nauseum about my take on the matter), a conversation about the issue is being pushed forcefully, and from many directions.
Hal
Posted to News on 31 December 2012
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