Microsoft's recent acquisitions of video game companies like Bethesda and Activision Blizzard has sent the entire industry into a frenzy - with companies like Sony pulling out its wallet to acquire the Halo and Destiny developer Bungie.
Now, in the latest development, a report by news website Puck reveals EA is actively pursuing a sale or merger with an even bigger company. According to the report (via Kotaku), the Battlefield and FIFA maker has supposedly already held talks with companies like Disney, Apple and Amazon.
It's also apparently been in negotiations with NBCUniversal about a potential merger, but the two parties could not come to an agreement. Both parties declined to comment, and EA said it did not respond to rumours and speculation.
Comcast CEO Brian Roberts reportedly proposed the merger, and if it had gone ahead, it would have seen Roberts remain in control, with the current EA CEO Andrew Wilson as head of the new mega-business.
EA has supposedly been "persistent in pursuing a sale" and is only more eager after Microsoft sealed the deal with Activision Blizzard. It would also like an arrangement that sees Wilson remain as chief executive. And although it's believed no deals are currently in the works, it's reportedly still keen to make an acquisition or merger happen.
How would you feel about EA being acquired or merging with another company? Share your thoughts below.
[source puck.news, via kotaku.com]
Comments 95
…All of those choices are terrible. I guess it’s not that big of a loss if EA merges
Now that’s unusual, normally they’re the ones consuming other companies.
I know people are concerned about the gaming industry becoming monopolized by rich conglomerates buying up all the most notable players, but frankly...so far it's been the companies with the crappiest track records in terms of both customer satisfaction and ethical workplace management, so I'm all for it. Except for whatever Saudi Arabia is doing. Stop it. Stop it right now.
Giant corps gobbling up smaller nonstop. This leads to monopolies and plenty of negatives.
"Elon Musk buying Electronic Arts" will he a huge headline in a year.
@StarPoint It'd be interesting to see what Disney could do with it. They've had their hand in gaming since pretty much the beginning, greenlighting critically-acclaimed projects on the NES like DuckTales, the very profitable Disney Infinity series, and--of course--the beloved Kingdom Hearts games. I'd say they have one of the best track records when it comes to multimedia companies signing off on licensed games developed using their properties. They certainly have more experience in the industry than Google and Amazon, who only just started releasing their own gaming platforms and unironically believe cloud gaming is what the people want.
Please don't let Comcast try to become a game company.. it's bad enough their local monopoly where I live forces me to sit through random internet outages which kick me off the games I already have.
I think we all suspected they were looking to cash out while the acquisitions were hot news
If Sony had enough money to buy them out, I'd be fine with that. We'd at least probably get a good Simcity game out of it, and it's probably the best chance we'd ever have at getting a third Boom Blox game, since that could work perfectly as a PSVR exclusive. Microsoft could be interesting, I guess, since they'd at least be willing to put their games on other platforms. Anyone other than those two, and I just wouldn't particularly care.
“Could someone please buy us and be responsible of all the baggage we carry? Someone needs to clean up our mess”
It would honestly be better if EA just stopped existing.
"Surprise mechanics"
@YoshiF2 it's not baggage - they're bikes to run ads to create awareness to attract further investments into further manufacturing for more bikes for more people in different colors.
Just imagine you’re the head of Disney or Amazon and you buy EA for 80bn, and then you notice none of the IP’s are included in the price because you have to buy those separately for 1bn each, and you don’t know which one you’ll get each time because they’re blind random purchases.
I think after Shredders Revenge and Bayonetta 3 I’m getting out of gaming….it’s just never been so less exciting than it is right now.
I hope whichever family owns EA struggles to find an exit strategy. Their greed has been so transparent.
@Orokosaki Apart from the switch that's why I've been focusing on retro collecting. Really not to sure about the future of it right now.
@Eel "There is always a bigger fish."
@Orokosaki I too have found myself focusing on old games and other interests. Iast game I bought was Metroid Dread and before that it was Links Awakening. Interesting releases are years apart.
Wait... Disney doesn't own everything yet???
Can't EA just hold a garage sale? All the companies and properties that they've gobbled up and then either ruined or done nothing with out on a table for bargain prices?
@Orokosaki I've walked away from the hobby multiple times in the past three decades and all that's happened is that I've missed out on some truly wonderful platforms, games and eras in gaming which I still regret not being "there for" when they were current. I still play tons of old games but I prefer being in the loop. Don't do it!
@Moistnado maybe it’s because I’m getting older ( 47 ) or because gaming simply isn’t as good as it used to be.
@MrGawain this… this right here is best comment
@HollowSpectre maybe it’s because of our age but we always go back to the older games, maybe it’s because they actually are better as they’ve stood the test of time or maybe it’s just that terrible disease called nostalgia.
I think growing up in the golden age, the arcades, 8 bit / 16 bit, magazines, no internet, true generational leaps in consoles etc. has maybe spoiled us or maybe I’m just looking at it through the rose tinted glasses of youth!
This is bad news just in general. Don't like 99% of their games but all these large mergers are only bad for the industry and over all society becoming more monologist.
If these ultra wealthy executives wanted to do something truly good they could allow the studios to run the company as a collective. They don't need any more money (which this is really about).
Sony dont have the money, Microsoft wouldn't be allowed by FTC so soon after activision and Microsoft probably won't allow the xbox division to spend another 50-70 billion so soon either, and nintendo just wouldn't.
So yeah I think it's down to Disney, Amazon, NBC or Apple this time which would be good as they would still be multi platform on consoles.
Though a merger would be the best outcome
@Orokosaki I'm entering my late 30s, and games have never been better.
When you look outside the big AAA scope, beyond the big Nintendo series, beyond the Sonys, beyond the Activisions and the Ubisofts and the SquareEnixes... gaming has never had so much variety, so much creativity, so many things to say from on old genres.
We're in an era where game styles are mashed up into something brand new. An era where gameplay mechanics are used as storytelling. An era where if you see a game that interests you, you can play it within minutes if you want. An era where millenials and Gen Xers who grew up on games are making the games they wish we had growing up. It's fascinating, it's wonderful, and it's fun.
I'm a girl who spent her entire youth spending every loose quarter possible at arcade cabinets everywhere I could find them. And when people say games were better back then, I have no idea what they're talking about.
Coinkydink this news came after EA lost their most lucrative franchise (FIFA)?
Doubt it. Looks like they are trying to position themselves into a subscription pay to play service judging by the proposed suitors.
Should had merge with Activision before they got acquire by Microsoft. The only company I could see them merge with now are either UbiSoft or Take-Two.
@GrailUK They didn't lose the franchise, just had to rename the series because FIFA was asking for more money in exchange for using their name. Unless FIFA fans are really dumb, not much should be changing for EA in that department.
Of course EA, greediest of the greedy, would go looking for a sale/merger after all the big acquisitions earlier this year. Isn't it telling that it's EA that's looking for this instead of the other way round like the previous big acquisitions? Shouldn't expect anything less to be fair when their interests don't include a single gaming company. THANKS.
Man, losing FIFA hit them hard huh? /s
@Orokosaki nearing my 30's over here and I agree. Games back then(all the way up to the Wii) I'd say had a very nice charm to them. Games on the N64, Gamecube and Wii( NES and SNES as well) had so much more love put into them that I'm also sticking mostly to retro games.
Are there any good new games nowadays? Absolutely but nothing quite fills the void like they used to.
Thankfully Nintendo and a few others still makes FUN games so there is still some light at the end of the tunnel.
@Preposterous Football fans will go where the FIFA licence is. They always have. They are into football more than gaming.
I don't car what happens to EA. The last game EA had a hand in that I remember enjoying was Burnout Paradise. So 70 years ago?
Side note: I'd take Disney out of the running. They spent $60B only a few years ago on the Fox purchase, their stock price is in the toilet right now and they have a myriad of political , attendance and box office problems. They won't be buying EA at the moment.
@Serpenterror you think Activision wanted to merge with EA over getting way too much money for the company and Kotick avoiding any more conflicts? You think Activision wanted to have an intra-company power struggle of egos?
No. MS overpaying was a sweetheart deal. Kotick gets a few Billion to line his pocket and ride into the sunset with the only people he cares about - his fellow wall street suits.
Are they suggesting that Microsoft's acquisition of Activision Blizzard soured their relationship and potentially means the removal of EA Play from Game Pass? I was honestly expecting Microsoft to take them in especially after the loss of FIFA.
@Preposterous
@GrailUK is correct; The loss in FIFA licensing would most likely mean whoever makes the official FIFA game gets the sales of its predecessor, because people tend to purchase FIFA games as merchandise more than they do as games. Why else do you think the Switch versions sold so well in Europe? EA is taking a heavy hit because of the loss in simple brand recognition.
Of course, there will be some people who do realize that EA still has "sequels" inbound, just with a rebranded title. However, it would require a great deal of advertising just for EA to somehow communicate to football/soccer fans that "this is FIFA, just without the name"
@ModdedInkling Sure, gamers will always have the discussion is PES better than FIFA and be more discerning but the vast majority of mainstream football fans will go where the branding is. I can't imagine FIFA would be as accomodating having EA Football club as the sponsor of Champion's League over something with their branding and as such, football fans will gravitate towards whatever that game may be. Yeah, it's naff, but it is what it is.
@Orokosaki I judge them on a game by game basis. Some are much worse than I remember! But yeah most of the classics hold up better than most modern ones. And I'm older probably doesn't help much!😂
@Orokosaki I’m mainly getting games now that I’ve missed out on over the last few years or not got around to playing.
Not surprised, EA losing FIFA is a lot more damaging than they imagined it could be. Before than happened, everyone was talking about how little that contract actually meant as EA has many contracts with individual clubs and footballers instead.
What they did not realise, was that when they lost that contract with FIFA, the majority of the solo contracts they had with clubs and players were not going to be resigned.
@ModdedInkling @GrailUK
Absolutely nonsense what you people are writing.
The FIFA licence does not matter at all. Sport fans just wants a good game and authenticity. And EA is keeping the licenses of the clubs and the players, witch is the important part here.
The reason that FIFA legacy is still selling fine on the Switch, is not because of the FIFA brand, because then people would just have kept to the first version on Switch. It is only the updated data on players and clubs that changes every year that matters to people, and why they buy this crap again and again. EA will still be doing that in the future.
Yes. Sales will take a little hit the first year, but after that people will recognize that FIFA has become EA Sports FC. "EA Sports" as a brand is strong as well among football fans
The future original licenced games from FIFA will become some mobile crap that some people will buy in the beginning, and then realize it is not what they were expecting. Then they will find out about EA Sports FC.
History has shown, that it is the game that matters. Not the brand.
Come back in two years. I will be right about this, and you will be absolutely wrong. EA Sports FC will still be the biggest and best selling football game on the planet.
@dres It will be interesting to see In two years time if I'm right and EA doesn't have the most popular footy game, then you have to change your avatar to AiAi for a month and I'll go with Alex Kidd ofc haha
@GrailUK
Deal
Any of those parent companies would spend five years destroying EA’s business and then spin it off as an independent company again.
@chefgon Sad part is, that might be good for the games industry.
@Sonos Well they look like the perfect pair but since EA is looking to sell themselves maybe just sell the company back to Trip Hawkins. Wonder how old Trippy is doing nowadays.
@Serpenterror That would be incredible but he is up there in years. When I was a wee lad EA games where nothing short of magic for me. The box art, sleeves, wheels and manuals were the best in the business. The games were mostly all top notch for my C64.
And yet Microsoft has clearly bypassed EA.
I'm not American but I know lots about Comcast because I worked at a call centre they contracted up here. And I think it would be the funniest **** ever if they bought EA like omg hahahaha
@Orokosaki Yeah gaming definitely isn't what it used to be, and we can see why right here. It's gone all mega-corporate on us, with all the soulless cash grabbing that goes along with that. It's why all the AAA games feel so similar these days with them for the most part simply chasing the same few popular trends. It just feels like a lot of the fun and passion is gone as it becomes more and more centered around the mainstream audience.
@Orokosaki Indeed. If only people would wise up and NOT buy every remake/remaster/rerere that comes out, we might see something fresh...but nope, the age of rebuying stuff you've played is too strong for some bewildering reason.
Wow, a Comcast merger possibility!
Remember how EA was known for servers crashing right after releasing new games.
Now imagine if the biggest and consequently most garbage ISP in the US since America Online owned EA.
They changed their name to Xfinity cause they know their old slogan "It's Comcastic!" was turned into a expletive to describe their poor service quality.
People may not like EA, but whoever buys them is going to get tons of IPs to play around with.
It would go deeper then just Madden, FIFA, and Battlefield.
Due to their purchases of companies like Origin, Maxis, Bullfrog, and others EA owns franchises like Ultima, Wing Commander, all the various Sims games, Command and Conquer, etc.
Whoever buys EA is going to get a massive chunk of gaming history.
I wonder if it would even be possible for Microsoft to buy them, and I wonder if part of it is them trying to be bought by something before Microsoft buys them
The landscape appears to be changing ever so elegantly. Small independent studios appear to be really thriving and growing. With all the incredible tools at their disposal they are making incredible games with vision and focus that reminds me of the the "garage era" of the Commodore Amiga. I love the risk that these people take and it's brining so much freshness to the industry. I'm loving this generation, so much to offer us!!
I remember when EA was the company that made groundbreaking games that emphasized the greatness of their designers. Now it's a joke of a company that is a shell of its former self. I'd be in favor of Trip Hawkins buying back the company, taking it private and refocusing the mission back to game designers making unique, wonderful games like they used to do.
Would prefer if they just exited the market altogether. They're so infamous by this point, it's probably better to call it quits.
@ModdedInkling Man, people really should stop looking down at FIFA (game) fans like that. I don't like the series personally, but all my friends that enjoy(ed) it would have no trouble figuring out the name change.
@CharlieGirl totally agree with you.the not thing I don’t like about gaming is that the days of buying a finished game on launch day are long gone. And while I haven’t been affected, micro transactions. Otherwise, I think gaming is probably in its golden age now.
@CharlieGirl Arcades had pinball machines so it was objectively a better time for gaming. Video pinball will never be the same and real tables will always be unaffordable for all but the wealthiest people.
I'm getting a Stern table this coming winter.
@Preposterous
The problem is that with the number of people wanting legacy gameplay, there are just as many, if not more, who want the newest experience, but on the go. Legacy content is much easier to revisit than new content, and even though revisiting older games isn't as fun because you don't get newer athletes, it's nowhere near as critical as cutting off the option to go for a new game entirely.
From this list, only Amazon make sense, and they most likely won’t do it..
I wouldn't mind if Apple, Google or Amazon buy them. They release the same game every year and they even refuse to put any work on the Switch version of Fifa which is basically just a PS3 port. Cant be any worse
@OnlyItsMeReid if Microsoft were allowed to buy them aswell as zenimax & Activision there'd be no way anyway could say they didn't have a monopoly on console gaming even if they currently don't lead in the market share but no they wouldn't be allowed because it wouldnt be fair competition if they could just buy all the biggest publishers out
Not too shocking given that much of EA's success comes from licensed properties (FIFA, NFL, UFC, NHL, F1, Star Wars, etc).
The failure of Battlefield 2042 must have spooked the company as Battlefield used to the biggest non-licensed EA game by far. They still have Apex Legends and Need for Speed, but that's probably not enough.
Why is this coming after they dropped on Fifa?
Could it be a coincidence?
Many on here have already bought up about the big companies relying on 'safe bets' like re-releases, sequels, etc and I think we are hitting a turning point where more indies (like myself (cheap plug)) will become more prevalent due to having smaller/no budget and needing to innovate/be super creative to get noticed which will make for some interesting games. Big changes are gonna be coming in the industry over the next 5+ years imo.
Apple and EA merger?
"Buy our $1200 console to buy full priced games with microtransactions!!11!"
Seriously though, it's crazy to see all these Western publishers being bought up/merging etc. It'll be very interesting to see the future of the industry unfold.
Here is a poser. Do you think there is scope for something like Gamepass to have a Fifa game (obviously it would have to be heavily positioned as a GaaS) but, because of the licence, it would be an extra sports tier you have to pay for (kinda like SKY TV.) Yeah, it's a pretty grim future, but gaming is becoming miore and more commercial these days. I mean, the future of Gamepass is adverts etc. Maybe microtransactions would be enough but man, subscription services could get milked!
@GrailUK I believe with the looming financial storm that subscription anything is on very shaky ground. Shown recently by Netflix. Gaming, entertainment in general is about to have a very rude awakening.
The mood on the pasttime has soured over the years...it will eventually become trite and boring to the masses - then things will happen - good and bad. Throw in economic hardship. Spread a thick layer of warfare...gaming will change and quick.
That is my prediction.
@dres @GrailUK I’m volunteering as a witness to this agreement. I will be asking one of you to suit up in two years.
Somebody is looking for a golden parachute.
For once I’m ok with a merger. Good riddance.
@Not_Soos The only thing is that it doesn't make sense. Why close down their publishing label, shutdown/close all their studios. Only to than return to the industry 4-5 years later by buying EA.
@Sonos
I’m thinking a mini collapse will hit the industry and force a reset.
It won’t be as dire as the 1983 crash was. But it’ll hurt all AAA studios and publishers. Bad. Even Microsoft, Sony, and Nintendo will suffer the effects.
I can’t remember his name, but there was a guy back in the 360/PS3 era that predicted what’s going on with the AAA game industry today. He made a strong point about creative AAA development being unsustainable even with the budgets of that era, which were about a quarter of what budgets are today. He was proven right during the era he made that statement, since the 7th generation saw a crap ton of big studios close or be absorbed by non gaming entities off of just one failed game idea.
After that, the eighth generation was really a play it safe generation. The consoles were mostly safe (as much as I loved the PS4, it simply wasn’t as innovative or creative on the hardware front as the PS3 was) and the games were even safer. Everyone stopped taking risks, but the demands of players forced huge expansions in presentation quality, ballooning budgets far beyond what had been seen in the 7th Gen. Something that those consoles really weren’t designed for with their weak play it safe CPUs and limited bandwidth.
So now we are in an interesting situation with AAA gaming. To meet the demands of both gamers and shareholders, big gaming studios are both playing it safe and trying to increase monetary returns at the same time. That is an inherent contradiction that leads to schemes like battle passes and micro transactions, as well as repetitive gameplay ideas from title to title.
I mean, look at Ubisoft open world games. Far Cry, Assassin’s Creed, and Watch Dogs are at their core the exact same experience. The only difference being the camera systems and basic gameplay loop. All three are designed to extract micro transactions at every turn. Each sequel in the series builds only slightly in each installment. They are the same game, with only the setting being changed. That’s especially true in Far Cry’s case, which hasn’t seen any innovation since Far Cry 3.
I get that the indies are pushing strong. And AA games are still taking some risks here and there. But AAA is what has always driven the industry at large. It’s where the ground was broken and where the innovation changed everything. A game like Mario 64, or Halo Combat Evolved, or Shadow of the Colossus would never be approved today. And that’s sad to me.
To add to my previous post, the only positive development I’ve seen is actually in the hardware. The PS5 and Xbox Series X are truly innovative pieces of tech for consoles. Where the PS4 and XBONE didn’t incorporate any new ideas of their era into their designs (enhanced I/0 and fusion style SSD drives existed and were affordable at that time) the Series X and PS5 are leveraging the latest developments in the PC space and have returned to desktop class CPUs while incorporating advanced I/O.
Bad thing is that only a handful of games have taken advantage of it so far. And I feel like we won’t get too many games, outside of the first party hitters in the last years of their service lives, that will do so. Not with live service being all the rage. And for live service to succeed, it needs to be on every platform it can be. Which limits the 9th generation consoles and more powerful PCs. Stripping out creative gameplay ideas that could otherwise be leveraged with this very good hardware we have.
When I look at my PS5 and read the specifications, it has so much potential to create new gameplay experiences and get us out of this AAA funk. Same with my friend’s Series X. But I’m saddened because I know that only a small handful of games will ever take true advantage of the hardware and push them to their limits.
@Ryu_Niiyama Splendid Ryu haha
@Sonos EEK! Sounds ominous.
@MrGawain 🤣🤣🤣🤣🤣🤣
@SteamEngenius rose tinted glasses and blurry eyed nostalgia?…..either that or people are just more comfortable spending money on something they are familiar with. It’s like watching a film on tv that you’ve seen 100 times before even when you know there’s stuff on other channels to watch.
Frankly, I say let Nintendo buy them out. Then maybe they'll be able to make a quality game for once, and especially put them on Nintendo platforms.
They've seriously become the LJN of the modern games industry, pushing out terrible or mediocre games, and writing off a wildly successful console like the Switch, putting "legacy editions" of their sports games onto the system.
@Eel
Okay, it's not wide spread knowledge, but you don't have to be a financial guru or stock market jokey to know that a huge storm (crisis) is brewing. And it's long overdue. Even big companies tend to cash in their chips while they still can.
@OrtadragoonX I don't think Nintendo takes big, sweeping risks like they did in the 64 era but I don't see them exact following microtransaction trends either.
Animal Crossing, Kart and Smash could have easily followed a more aggressive dlc trend (like costumes every month, more frequent paid dlc)but instead kept it reasonable. They still make games that most big studios wouldn't (Pokemon Snap, Paper Mario) and they created an eco system where real innovation can take place in the console market.
It's a big reason why I've all but abandoned other game systems except for this one. It is simpler, I get more for my money and there are pockets of innovation. And because of it's install base the innovative pc games look to the switch first when porting.
But what you said is 100%. I think we will have a mini-crash in the next 5-10. I personally cannot wait. It can't come soon enough. I hope it is a bloodbath.
ps - I will say the one house that takes some measured risk is actually microsoft. Making such a robust Flight Sim and Sea of Thieves comes to mind. No one talks about it but RARE has re-created itself into one of the best developers around. I love that SoT was successful. It was easily one of the best games made in the past decade.
They are wanting that big buyout like Activision got. Losing rights to FIFA hurt them and the workplace is mediocre. If they fell out and was gone, <shrug>.
@FishyS I second this!!! Comcast is a terrible company. I can't wait until there's another option for me to get internet at my house then Comcast. I look forward to the day of calling and canceling my service with them. Every year their prices go up....yet you get poorer or less for that money. It just doesn't make sense how they're able to get away with this.
@GrailUK I was going through my old comments and saw this discussion. Did you ever change your icon to Alex Kidd? I think you lost this bet.
@Ryu_Niiyama HAhaha! Well, as I always point out, I am always wrong! Curse you Ryu! Curse you and all your kind! A bet is a bet so...
x
@GrailUK Haha what are friendly internet strangers for?
@dres sooo looks like you won the bet….
@dres gz mate
@GrailUK
Thanks mate. Was an easy win
So one month as Alex Kidd then? Enjoy
@dres I'll try my best
@GrailUK
Alex Kidd suits you
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