Monday, April 4, 2011

Tech Companies Undergo Rapid Expansion

Recently two major names in the tech industry have made massive acquisitions, both GameStop and Texas Instruments bought out competitors. TI purchased National Semiconductor for $6.5 billion in an all cash transaction. This purchase was made to increase the output of the analog products that TI produces, these sales are expected to be 50% of their overall income over the next year. This is because TI will now sell over 12,000 analog products ranging from calculators to microchips in cellphones. With this buyout TI will further cement its place as the leader in its current market.

 In the news for GameStop, is the acquisition of Spawn Labs and Impulse. Spawn labs, a streaming technology company, and Impulse, a digital distribution company/program (an alternative to Steam). These major additions to GameStop now mean that not only will GameStop be selling and shipping games, they will be hosting just as many digital downloads and even producing some games. This will drastically increase GameStop's total income for the rest of the companies existence. With the dawn of the digital age this is a great move, by putting the company not only in one market, but three simply overnight.


Smith said...

How could this GameStop acquisition have a huge impact on the economy?

Garrett T. said...

Well if Gamestop can increase their income drastically, this means more jobs for people. There will be other companies that will have to watch out for Gamestop on the rise on three fronts. They'll have the resources from all three fronts as well as consumer input to know where to be innovative and what trends will be a hit. Let's hope Gamestop doesn't screw up.

Ethan said...

Do you think GameStop will try to take on Steam directly or do you think they will just have it as an option, like "Oh hey if you don't want to come in to the store you could just download it."? I have heard that GameStop is going to try to do something like OnLive did with the off site servers hosting games that you can access and stream full HD without having to have a monster setup. Do you think this is a good idea since OnLive seemed to have failed miserably?