Take-Two Interactive Software (NASDAQ:TTWO) recently issued a press release promoting its software for the upcoming Sony (NYSE:SNE) PlayStation Portable handheld platform. Gamers will be treated to another adventure installment in the Grand Theft Auto universe, as well as to MidnightClub 3: DUB Edition. As you'd expect, the company wants to bring out the big guns right away; it says in the release that the games should be ready around the time of the PSP's North American launch.
That's pretty cool news, but there's an even bigger story this week, as Jeff Hwang reported for the Fool: Electronic Arts (NASDAQ:ERTS) took Disney's (NYSE:DIS) ESPN brand away from Take-Two. For Take-Two, this is a big ouch!
Or is it? The executives know this puts their company in a difficult bind. But what are they going to do, sit around and mope? For the sake of Take-Two's shareholders, I hope not.
Disney was dealt quite a blow when Pixar (NASDAQ:PIXR) decided to go its own way. But Mickey and the gang will survive as if it never happened. Take-Two will survive, too -- or, at least, the lack of an ESPN deal will not be what takes it down. Granted, the comparison is apples-to-oranges because of the contrasting scales of the companies involved, but the principle is the same: If a business thrives on creativity and the development of franchised intellectual properties, the only limitation on its prospects is its ability to adjust. Disney will not only make more animated movies without Pixar, but it will hope to make even better ones that fill theaters and in turn make shareholders happy.
I wrote recently about Midway Games (NYSE:MWY) and its response to EA's exclusive deal for the NFL brand. I'm essentially echoing here what I wrote then: A software company can move on from a defeat, regroup, and come up with new, competitive ideas. Take-Two did it before with the low-priced Sega titles, and it can do it again.
Take-Two, as the press release reveals, is looking forward to having its mature-themed, car-stealing juggernaut colonizing Sony's new hardware. The company still has some aces up its sleeves, and I think it's probably already hard at work coming up with innovative ways to counter EA's accomplishments. But this is not a love letter to Take-Two -- heck, as a Disney shareholder, I enjoy the Disney/EA deal from my side of the fence. With all the talks of consolidation in the video game industry, I can say that I'd rather my have company strike licensing deals like this, as opposed to leveraging its balance sheet for outright takeovers -- it limits the hassle, in my opinion.
More information on Take-Two and Electronic Arts:
Fool contributor Steven Mallas owns shares of Disney.
