Michael Pachter, video game industry analyst for Wedbush Morgan, has made some pretty big predictions before, but this one might take the cake.

You know how EA backed off from its attempts to take over Take-Two Interactive? It may have eluded EA, but according to Pachter, it might lose its key creative talents instead: Sam and Dan Houser, the powerhouse siblings of Rockstar Games, and the driving force behind the Grand Theft Auto series.

They established a three-year contract with T2 last February 2006. When their contract expires this February, Pachter expects a bidding war to happen, and Take-Two will face two options: lose the Housers, or pay more to keep them. If they intend to give them higher salaries to keep them, it ultimately means GTA games will be more expensive to develop.

Basically, it means Take-Two is in for some tough decisions ahead. It's also worth noting that Sam Houser himself thought that a merger with EA has its advantages. On a side note, Pachter believes that they overplayed their hand in their negotiations with EA, as it could not have made a better kind of "synergy" with other studios in terms of making games.

---

Related Articles:

• Electronic Arts ends talks with Take-Two: merger no go
• Grand Theft Stock Shares: Take-Two, EA shares plummet
• Rockstar president sees appeal in EA alliance