"EA's earnings weren't all that bad. It would be a great acquisition for a Disney or someone else in the entertainment industry at these levels."
I doubt they'll be acquired. Disney got out of core games remember? And for social games, they acquired Playdom. Same thing for TTWO, I think acquisition hopes are too high. Last time around TTWO shopped themselves and there was only one serious buyer, EA, and I doubt they're shopping for TTWO again.
I agree, EA is probably out of the picture at this point; however, ATVI needs some serious help right now. Halo is about to shakedown the CoD franchise. Halo will outsell CoD on the Xbox. This is going to expose an already weakened ATVI. They don't have anything new in the pipes and Skylanders isn't going to get them what they need this year. They need IP badly. This would have probably happened already, but Vivendi wants out because they are in a bind. It's kind of like how Disney didn't get punished at all when buying Lucasfilm because the deal is going to pay for itself. I see that here with TTWO at these levels. They can cut the fat and adds to earnings. No more Mr. Piggy bank for Z and crew.