Juggernaut Publisher EA Planning to Sell or Merge

EA will look to cut back on bad products this year to look more appealing I'd assume

One day there will be just one games publisher and one cloud system to play it all on the rate these things are going.

Jesus this is crazy. Look, EA have a bad reputation but think about just how many subsidiaries there are within it. Along with all the mobile titles and so forth. This is going to affect a colossal number of staff. I’m not a fan at all of this level of consolidation and it’ll be a worrying time for the staff involved.

@lolwhatno EA has had a rough time the past two generations. The only real money maker FIFA was costing them almost as much as their revenue to license. So they likely cut it for that reason. Lose out on some money from the branding, but keep more revenue.

But EA isn't alone in this. Ubisoft has had a few flops, and is looking at being purchased by an investment firm. Square Enix is well documented, other than Final Fantasy their games don't sell.

Is it any surprised these three are most likely to sell?

@Shepherd_Tallon I'd hate for Disney to enter the gaming market. I prefer them leasing their IP out to Sony (Marvel), Nintendo (main cast characters).
If Disney entered, they'd have their own game pass. How many subscriptions do you want?

I find it weird how the CEO wants a merger so he can remain the big wig. Sounds like a guy with a bit of a power trip.

That Microsoft and Activision buyout really inspired other third-party publishers to plan on selling themselves. I don't like today's game industry man.

No, Sony doesn't have the money to buy EA.

Just need to say it before anyone even thinks about it lool.

Look, I'll prefer Microsoft buying them over Disney, Apple or Amazon.

@RawnDawn Nah, Microsoft has enough companies already, they don't need to buy more. If they buy more they're taking stuff away and forcing everyone to buy Xbox.

I'd love to see a company who actually gives a damn buy some of their great, but dormant IP's. Games like Road Rash, Syndicate, Burnout could thrive in the right hands.

I don’t like EA, but this sounds bad. A member would better, as then it would be less of a monopoly issue, especially with NBC universal.

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 or Apple this time which would be good as they would still be multi platform on consoles.

These companies will regret later on. It's one thing when who gives the orders thinks about games, and a completely different thing when who gives the orders thinks about entertainment. Expect studios to close as CEOs choose to create TV Shows over games.

Eventually it’s all going to be owned by Buy n Large anyway, right? 😋

It feels like EA are pre-empting suffering from them losing the FIFA branding after this year.

Remove the sports licences though and what is EA worth? These games are of consistent quality but are never really the best the genres have to offer. Have EA ever made a FIFA anywhere near as good as SWOS or ISS Pro Evolution?

A large part might be EA's back catalog that goes back decades. Wouldn't mind an HD updated Strike anthology.

@UltimateOtaku91 If I Was Sony I Would Pull An Embracer And Buy Bioware Respawn And Maybe Codemasters Off Of Them Don't Really Need The Whole Company.

@NomNom I doubt Disney would really want to return to the gaming industry. Especially after Epic Mickey 2 and Disney infinity. They want all the benefits and none of the hardship. Which is why they started licensing out and stopped being a publisher.

I guess merge with T2 or Ubisoft.

@Grimwood

iD is the best dev at FPS.

Sorry

Uh-Oh. I can already see the outcome.

Phil: "Daddy, I need 100billion $"

This is getting out of hand. It'll no doubt be due to losing the FIFA licence and they still want their billions.

As much as I hate acquisitions a trend has started when Microsoft bought Zenimax and all the publishers are wanting some of that big money. Since it seems to be the inevitable future Sony had better start securing a few for themselves or they'll end up with nothing but their first parties.
With the recent house clearance from SquareSoft leaving only (mostly) their Japanese business Sony would be smart to buy them. Especially if they want their 'live services' the way Final Fantasy is going.

The optimist in me is hoping that all these companies selling or otherwise ceasing their past operations could mean that we're due for another gaming golden age.

The pessimist in me is seeing this as already bloated companies buying out others to create even less choice.

I'm not in to many EA titles but either way this stinks. I'm getting tired of this trend.

E.A lol wheres visceral?? you had a great team behind deadspace.

@Shepherd_Tallon It's not true though. What is difficult to maintain is ever increasing anual profits.

FFS...

Whatever. So long as Mass Effect continues on Playstation I don't care what the rest of EA becomes.

NBC Universal would be a good home for a Mass Effect TV or movie series though. Imagine a Mass Effect ride at Universal Studios FL. 🤩

@Spyroescape The only thing of value in EA is Bioware and even that they have been ruining. It's just a sports house and sports games need to be on all systems.
It's pointless to aquire EA. Buying bioware from them would be nice though.

@Grumblevolcano The thing is they will. Especially if another publisher like say Take 2 grabs the license and publishes a FIFA game.
Football fans that gobble that stuff up won't be any the wiser.

Anyone but Microsoft even tencent! They've taken away fallout and elder scrolls I don't wanna lose mass effect and dragon age from Playstation

What the Puck?

@RawnDawn
Look I’d rather Sony than Ms. That would balance things out nicely.
Both would be a waste of money but there it is.

I've had enough of acquisitions tbh. I still don't think it's good for gamers no matter what platform you're on. Ms has locked future obsidian and Bethesda games behind thier wall and I personally think that is an awful way to treat gamers! Look I fully understand first party titles but don't take a game that started multiplatform and then make it exclusive and I feel that way about all platforms. If platforms can guarantee that the purchases they make with remain on all then fine and fair play, if not then no no no.

I wouldn't mind a merger with T2. The games would stay multiplat and we could start calling them TakeTEA.

The problem with EA is their most profitable games FIFA and madden are licenced they loose the licences the companies value tanks which would put off most prospective buyers. Theres more potential to loose money from EA acquisition than make it

If they let loose the NFL license, maybe I'm more ok with it. But I'd they aren't no merger with Sony or ms.

@Nem That's the point, in EA's mind the money gained from the acquisition/merger makes up for the money lost by losing the FIFA brand.

@Nem While bioware may be ruin in your eye. They still being massive massive income through The Old Republic. They also have Popcap with Plants vs Zombies and Bejeweled. Sim still brings in a ton of cash... etc

@Spyroescape Why would you want that anyway. 🤪

@lolwhatno they're licking their lips at the thought of being bought for somewhere around the price Microsoft is paying for Activision

@Grimwood I'd say doom is the best fps atleast in my opinion

Dang, just when EA was looking to become good again...

What is it with all this consolidation suddenly? It doesn't make sense. It's not the economy because it's only happening in the games industry on this scale. It's not losses, they're all making increasing profits. It's not shrinking market, they're all growing. Why is it that suddenly every single games company wants to sell out to the game 10 big super conglomerates as rapidly as possible? It seems like they know something we don't, unless I'm missing something.

Is it just about selling at artificially high share prices after the lockdown boom?

Comcast would have been the worst possible one of the worst companies around. If you ever wondered why the US is the worst for digital content, streaming, etc, the answer is usually "Comcast.". If Comcast bought them, ea games would probably have ended up locked behind Xfinity contacts and peacock streaming subscriptions.

@Rural-Bandit
At the end of the day the gamers suffer with games being split between platforms with third party buyouts. As for Microsoft's claims of not competing with Sony, if that were true they wouldn't take the once third party games away from other platforms, they are competing with Sony no matter what PR statement they try to push. They're both in the same market, both competing for market share.

We don't know that Microsoft are 'saving' these companies because no one else has come forward or near these big buyouts on the same level. It's all just excuses to buy out the industry. In many ways, Microsoft are doing what they accuse the others of, taking games away from other people.

I actually would be in favour of these other tech giants buying these companies, atleast the potential is there that they might still be third party releases. Like Disney with licencing Star Wars games.

It's all just bad for gamers, in the end we lose, Microsoft are not saints or saviours.

I'm sensing another crash on the horizon. To many companies consolidating to tightly for too high an artificial price and wildly swinging consumer spending in a collapsing economy. This parallels massive collapses in other industries over a century, too closely. Either that or a plan to convert gaming into just a social/media distribution mechanism, which, honestly has been becoming the trend anyway.

I hate monopolies but I'd rather the industry be divided up between Microsoft and Sony that at least get the gaming culture than companies like Apple and Comcast of all things devouring it.

@GADG3Tx87 oh heck no. I get Sony only fans not liking Ms for buying out some games, but at least you can become an Xbox customer and be treated as valued and part of the community. Not so with companies like Comcast. They treat you bad if you're not a customer, and they outright abuse you if you are.

@MidnightDragonDX NBC used to be a games publisher a few years back but they shut down that part to shift to just licensing their franchises. Presumably they aren't happy with that and want to go back to in-house development. Interestingly, it's the opposite of what WB is going through.

modern day EA has little to offer outside of its two sports franchises. their MTX and lootbox business model is under fire in many countries and has been deemed "gambling". what is left at EA to genuinely care about at this point? the dead space IP? sure, but not with EA at the helm. if a respectable publisher such as sony or capcom had the IP, then i would be excited. bioware and dice are a joke now. what's left? maybe just respawn if we are being honest. EA was never in the business of developing and nurturing its talent... it is in the business of shutting down its own studios the moment the numbers don't reach impossible expectations. bioware will be next on the cutting block.

@Spyroescape
they probably don't, but if you have a copy of their bank account send it over. Because everyone always knows that apparently better than Sony itself.

Really interesting points I’m reading so far in the chat. I’m just wondering what’s going to happen once a recession hits and the global economy starts getting worse (as it’s slowly looking like). Could there be a tech crash in the making? I hope not. EA could win big if they play there cards right. If I were a betting man, I could see Disney working out a deal since they own ESPN.

@Rural-Bandit yeah they're a monopoly in most of the country and they sure act like it. And they own the local politicians in most of those places to ensure no competitor could afford to ever tamper with it. Not to mention their 1tb soft cap on their unlimited plans, even gigabit plans. You get charged every 100gb over 1tb a month you go up to $200 a month OR you can pay an extra $50 a month for actual unlimited (up to unstated limits). It's surreal. Comcast, the biggest impediment to digital distribution and GameStop's best friend, wants to buy Origin? Lol!

@NEStalgia We've seen multiple other big 3rd parties (including EA) say the same thing as Square Enix about the "future" and that "future" crashed very soon after Square Enix sold their western studios to Embracer Group. Acquisitions and mergers may be a desperation move.

@Rural-Bandit great point 100 percent agreed. Crazy times ahead.

@TommyNL with publicly traded companies, you can derive it from their market cap. Sony is worth $113B and EA is worth $36B. Companies typically have around 10% of their market cap as cash on hand, so Sony would have $11B. They have more available but likely through selling other assets. It's not out of the realm of possibility that Sony could buy EA, but they'd likely have to liquidate a lot of assets so may not be worth it.

For reference Microsoft is worth $1.89T, so they probably have enough cash for a hostile takeover of Sony. The FTC would surely block that acquisition though.

Just when you thought EA couldn’t get worse, they could be bought by Amazon, Apple or Disney. NO THANKS to ANY of that!

In a distant future in some random auction house...

"...and the next item is EA. Not cared by customers, hated by players. How's gonna buy? OK, let's start with 50 billions... ... no one is interested? 40 billions... still no one? 30 b. ... 20 b. 10? 5? .... still no one? ... "

@Grumblevolcano looking at profits overall, the question is, desperation from what? Clearly something not public (or investor) facing.... But if they all wet the bed.... What were they drinking?

@DETfaninATL

Apple is by far the best of the three.

If it came down to one of those buying EA, I’d pick Apple 100 times out of 100. Amazon is a downright evil company with how they treat their employees. And Disney ruins every classic franchise it touches for the most part.

Apple isn’t the best company in the world, but they aren’t downright Bond villains like Amazon and Disney.

@SplooshDmg I didn't know everyone didn't know what Comcast was like....

Lol $100b, see what you get. Aww, too bad, you got another Anthem. Wanna try again, just $100m in to get another IPBoX(TM)

The last thing we need is sports games to become console exclusive. Hopefully an acquisition doesn’t kill multi-platform. Makes little sense to do so.

@NomNom wow… I guess making 2 billion in 3 years must be chump change? Respawn is the golden jewel here and it would be in Sony’s best interest to wrestle that studio and their IP away from EA.

It would never happen due to the overall depreciation of EA - but one could dream.

@JJ2 Don't get me wrong, Sony should spend money on better developers and at least Microsoft would most likely keep the games on every platform.

@Milt True but at least the games would come to PC at least.
Granted, it's best that they don't sell as you say.

@Zenszulu maybe not one, but 2 or 3

I don't understand the negativity. I can remember when Google bought YouTube and there was a lot of hatred and negative talks. Many years later, I really enjoy having one google account for many apps and services. Right now, I believe game pass model is the future, and there would be 2 or 3 giant subscribtion based system on whatever console/pc/Mac/mobile, etc

@NomNom yeah I agree there have been a fair few flops though some were self inflicted ones due to rushing releases where the only thing working as intended is the microtransactions, we all hate EA for a reason 🤣🤣🤣 definitely not a golden age of gaming😭😭😭.

@lolwhatno buy lo sell high… I’m betting that they believe game development studio values are peaking and they want to sell before the acquisitions slow.

@Milktastrophe yes indeed you are right. But I also think that Sony is not interested in buying EA at all.

Whichever company they decide to go with, the Titanfall ip would be good for Sony. It's the closest shooter to CoD and it's not like EA is doing anything with it. MS won't need it after the Activision deal goes through and Sony could use it to be competitive against CoD

I can smell Tencent dumping a boatload of cash here...and EA willingly take it, principles be damned!

@RawnDawn
Both Sony and Ms should spend money on creativity and bringing more to gamers. However I saw everyone and the coverage taking for granted that Ms bullying their way into buying everything is sort of ‘normal’ I’d rather the gaming industry be balanced and Sony be as big a player as Ms.
Ideally companies owning the platforms shouldn’t own so many studios but if they try it should at least be balanced. You can’t predict what they will do with them in the future. Keeping the games multiplatform is an excuse to have people swallow the pill. It’s ugly competition.
So what I’m trying to say is Ms buying EA would be really bad. (The worst case scenario)

@Shepherd_Tallon
NOOOOOOO. NO. NONONONONO
FRICK DISNEY FOR FRICKS SAKE.

I don't want that soulless company anywhere near adult stuff. Dead Space is just being resurrected. Disney is too dumb and childish to handle Mass Effect. As much hate as EA gets and as many F-ups they've had, Disney would be worse because they're even more clueless. It also seems that they've slowly been learning.

Most importantly, can we stop it with the Disney world domination. Absolutely insane how consumers want that company to grow bigger and bigger and to release even more soulless entertainment while making them all toothless and bland

@Zenszulu Even if that happened I don’t feel it would be a negative or stifle creativity.

@Rural-Bandit
I’m not surprised you have this opinion and I don’t see the point discussing it if you can’t see for yourself how bad one platform holder to own such a majority of games development and publishers would be.
It’s only common sense but everyone can have different opinions. I’m not interested in arguing

@Crabbitsteve gamepass will not remain at it's current generous and probably loss leading value if Microsoft have no competition left.

@Rural-Bandit An important point to consider is look back to 2013. Don Mattrick's vision of the XB1 was stopped thanks to Geoff Keighley's interview with Don Mattrick ("stick with 360") and Sony's E3 2013 conference, both combined of which made Microsoft a complete laughing stock and Xbox momentum dropped so much it nearly died.

Now let's consider an alternate reality where the same thing happened but Microsoft owned Bethesda, Activision, EA and Ubisoft. Don Mattrick's vision of the XB1 would've gone straight ahead because you'd have to buy the console if you wanted to play stuff like Fallout, CoD, Battlefield, Assassin's Creed, etc.

In fact, Don Mattrick's vision of the XB1 is returning under Phil Spencer given things such as games being unplayable offline during the recent Xbox outage and the patent about converting physical games to digital.

If there has to be an acquisition, the best fit for EA would be Sony so that if Microsoft does anything dodgy with their studios to cause problems for Sony like block CoD from PS (it's worded in such a way that Microsoft could have FTP CoD multiplatform while everything else is Game Pass systems only) then Sony can react and block the EA Sports games from Xbox.

The irony is that Comcast can get away with their ***** practices because the ISP industry has practically been consolidated. Somehow gamers fail to see that major corporations consolidating other major corporations ultimately gives consumers less options (even if they get short term benefits). Given the way the gaming industry is heading, I'm expecting to see gaming resembling the current TV streaming cesspool perpetuated by bloated companies.

@NomNom Disney used to make games under the Disney Interactive name I believe

@Grimwood Not true. Doom is the best of its genre.

@Floki I really wish they were seeing massive income through SWTOR, cause the game sees less and less support each year.
But from a Sony Pov, those games don't really matter.

As much as it pains me to say it, Sony could do with buying EA, if only to level things out a bit with Microsoft's huge acquisitions. I can't understand why they didn't snap up the Square Enix titles for $300,000,000.

@Rural-Bandit
I mean it’s not hard to understand a balance between Sony and Ms is sound but Ms buying everything is NOT. 🙅🏼🤯
Again it’s about platform in particular consoles. I don’t believe the others are competing in the same way in particular for console gamers. You’d have to be very biased not to see it or not care about console gaming I.e. gaming on pc. (Which is fine)
Any way Im not interested in what has become platform and subscription warring nowadays instead of what used to be console wars. I’m just saying what I think and not caring in the least about promoting a company or convincing anyone.
We ll to disagree as usual and move on haha
Have a lovely day.

@Nem The game just saw a new expansion this year. Most MMOs don't make it to 10 years. If it wasn't doing well. I doubt Bioware Austin and the game would still be a thing if it wasn't doing well.

@Nem Also what do you mean those games don't matter matter from a Sony PoV. SWTOR is a live service game... Sims with endless amount of digital content updates could easily be considered a live services game. Sony/Playstation is trying to break into the live service market.

Last year Jim Ryan was want to explore the mobile market more. This year Sony Group CFO Hiroki Totoki has stated that the company plans to release mobile games using PlayStation IPs. Popcap is a successful mobile game developer.

@Floki I know very well how it is doing cause i play it and it is not doing well. It has a passionate userbase, but the support it sees is really bad.
Also it's a PC only game.

@Bagwag82 the industry today is a lot different than back then. The biggest being, Disney didn't have access to Marvel and Star wars. Plus, if they got their hands on a major publisher with dozens of studios and IP they can pull Spiderman and Marvel from Sony and make their own console, hypothetically.

We face a similar problem with Apple, and Amazon. They don't know the market, them joining could set the industry back. Look at Google Stradia, bought studios but didn't understand the market demographic. Now those studios are essentially bust.

Sony profited from this, since they salvaged Haven which was formed by one of those studios going down.

@Nem I also play it, and been playing since the original closed beta. But the support isn't that bad. Lol. Sure it isn't seeing massive support. But it a 10 plus year old game, and it support isn't nearly as bad as many other mmo that reach this life span.

It being a PC only game doesn't matter as Sony had plenty of PC only titles. Planetside 1, Everquest 1-2...etc.

@Floki The content support is not comparable to WoW, FFXIV, GW2 or ESO.
It really isn't good or enough.
But, fine. It's clear we disagree on this.

@Nem Yes... Let's compared content support to litteraly the top 3 mmos on the market. No mmo is gonna compare content support wise to WoW, FFXIV, or even ESO.