Microsoft ready to buy EA Games?

[DarchAmonNagar]

Is Microsoft Ready to Buy Electronic Arts?
Shares for both companies jump, chatter ensues.
by Jim Reilly

US, September 23, 2009 - Rumblings of a Electronic Arts takeover by Microsoft have driven Wall Street into a frenzy this morning.

Reuters is reporting "unsubstantiated talk" of a possible sale, causing shares to jump for both companies. Electronic Arts saw a jump of over 8% to $20.01, while Microsoft's shares increased 1.1 percent to $26.05

"There's talk that Microsoft might be interested in acquiring Electronic Arts. It's unsubstantiated chatter, but it's out there," said options strategist Frederic Ruffy.

Analyst Trip Chowdhry said talk of this sale is unjustified. "Our contacts just don't see Microsoft buying Electronic Arts, no synergies whatsoever, and also not Microsoft's corporate primary focus right now."

Electronic Arts and Microsoft have yet to issue any comments on this story.

Wedbush Morgan analyst Michael Pachter told IGN a sale of this magnitude is highly unlikely.

"Their value as a one platform exclusive publisher is lower than their value on multi-platform. A media company would pay a lot more," he said. "Also, most licenses would

Thoughts

[Lord_Stewie]

Not only the Video Gaming industry business isn't only highly monopolized but this move by Microsoft is going to further more push the idea for a monopoly. Good business strategy, could be yes and no. What is MS intentions for doing this? Who would know?

[mikejet]

EA makes too much money being multiplatform. Doubt this will happen.

[DetroitSportsFan]

EA should team up with a hardware manufacturer and make their own console.

[toef]

Originally Posted by shadblz

Not only the Video Gaming industry business isn't only highly monopolized but this move by Microsoft is going to further more push the idea for a monopoly. Good business strategy, could be yes and no. What is MS intentions for doing this? Who would know?

If MS pulls this off, I hope Sony works something out with 2k Sports so we can get the NFL 2k series again.

[GLaDOS]

Valve is an EA subdivision, and loves developing for the 360 and PC. Plus, Newell is a former Microsoft employee himself. It's either Microsoft will assimilate with EA along with Valve, or Valve leaving EA for Microsoft. Either way, that's bad news, but both are still possible. (Mainly, the second one)

[mikejet]

Originally Posted by toefer

If MS pulls this off, I hope Sony works something out with 2k Sports so we can get the NFL 2k series again.

EA has the NFL license until 2013. It will be some time until 2k can make another game.

[Lord_Stewie]

I think Sony spent and lost a lot of money in this format war by cutting prices down and what not. It was a successful attempt and great it worked out. What I am surprised about is Sony's lack of competing in the video gaming industry nowadays. You have Microsoft buying EA, exclusivity rights and more meanwhile Sony sits aside without doing something. This could hurt the playstation in the long run if sony is going to pursue releasing newer playstations consoles.

[Elandyll]

EA, as pointed out, would be worth less when going mono platform, thus making the takeover idiotic on a financial level.

MS buying a studio or two to reinforce their (reduced) exclusive lineup? (Epic and Valve, already MS friendly, comes to mind) ... possible.

[aygie]

Originally Posted by shadblz

I think Sony spent and lost a lot of money in this format war by cutting prices down and what not. It was a successful attempt and great it worked out. What I am surprised about is Sony's lack of competing in the video gaming industry nowadays. You have Microsoft buying EA, exclusivity rights and more meanwhile Sony sits aside without doing something. This could hurt the playstation in the long run if sony is going to pursue releasing newer playstations consoles.

Sony's not just sitting around, they have bought/started these studios over the years

Japan

Japan Studio – Ape Escape, Siren, LocoRoco, Patapon

Team ICO – Shadow of the Colossus, ICO, The Last Guardian

Polyphony Digital – Gran Turismo

North America
Naughty Dog - Crash Bandicoot, Jak & Daxter, Uncharted: Drakes Fortune, Uncharted 2: Among Thieves

Santa Monica Studio – Kinetica, God of War series, Warhawk with Incognito Entertainment

San Diego Studio – NBA, MLB: The Show

Sony Bend – Syphon Filter

Sony Online Entertainment LLC. – EverQuest

Incognito Entertainment – Warhawk with SCE Studios Santa Monica, Twisted Metal series, Downhill Domination, Calling All Cars

Zipper Interactive – SOCOM: U.S. Navy SEALs series, MAG

Europe

London Studio – SingStar, Eyetoy, PlayStation Home with SCE

Studio Cambridge – MediEvil, PlayTV, PlayStation Home with SCE

Studio Liverpool – Wipeout, F1

Guerrilla Games – Killzone series

Evolution Studios – MotorStorm, World Rally Championship

Bigbig Studios – Pursuit Force, MotorStorm: Arctic Edge

[GLaDOS]

Originally Posted by Elandyll

EA, as pointed out, would be worth less when going mono platform, thus making the takeover idiotic on a financial level.

MS buying a studio or two to reinforce their (reduced) exclusive lineup? (Epic and Valve, already MS friendly, comes to mind) ... possible.

Epic had no problem developing on the PlayStation 3, and despite Gears Of War 2 being published by Microsoft, Gears Of War is still considered not an exclusive, since they are in talks in developing for a Macintosh version of the game.

Valve, obviously has a better chance on becoming Microsoft exclusive, since Gabe Newell hates the PS3, and the majority on the games they port on every PlayStation game are actually developed by other third party developers (i.e, Gearbox Software and Sierra Studios did a port for Half-Life on the PS2). Plus, the majority of the employees at Valve have knowledge of the Xbox 360 and PC rather on the PlayStation 3, and Newell is a former Microsoft exclusive, so it is possible for them to go Microsoft exclusive. However, that would put other projects such as Steam at risk, but the Source engine is still fully modable on Xbox 360 console.

[Lord_Stewie]

Originally Posted by aygie

Sony's not just sitting around, they have bought/started these studios over the years

Japan

Japan Studio – Ape Escape, Siren, LocoRoco, Patapon

Team ICO – Shadow of the Colossus, ICO, The Last Guardian

Polyphony Digital – Gran Turismo

North America
Naughty Dog - Crash Bandicoot, Jak & Daxter, Uncharted: Drakes Fortune, Uncharted 2: Among Thieves

Santa Monica Studio – Kinetica, God of War series, Warhawk with Incognito Entertainment

San Diego Studio – NBA, MLB: The Show

Sony Bend – Syphon Filter

Sony Online Entertainment LLC. – EverQuest

Incognito Entertainment – Warhawk with SCE Studios Santa Monica, Twisted Metal series, Downhill Domination, Calling All Cars

Zipper Interactive – SOCOM: U.S. Navy SEALs series, MAG

Europe

London Studio – SingStar, Eyetoy, PlayStation Home with SCE

Studio Cambridge – MediEvil, PlayTV, PlayStation Home with SCE

Studio Liverpool – Wipeout, F1

Guerrilla Games – Killzone series

Evolution Studios – MotorStorm, World Rally Championship

Bigbig Studios – Pursuit Force, MotorStorm: Arctic Edge

That is good. I don't think you understood what I was trying to say. I want to see Sony doing something that shakes the ground, something big that comes in as a major news. Sony should monopolize on buying Marvel gaming rights, Capcom and such examples.

[GLaDOS]

Originally Posted by shadblz

That is good. I don't think you understood what I was trying to say. I want to see Sony doing something that shakes the ground, something big that comes in as a major news. Sony should monopolize on buying Marvel gaming rights, Capcom and such examples.

I bet they're gonna buy Rockstar. The sure do have fantastic history together; Rockstar's lead development platform has always been of the PlayStation consoles, plus Agent is another great exclusive coming from the company.

[aygie]

Originally Posted by shadblz

That is good. I don't think you understood what I was trying to say. I want to see Sony doing something that shakes the ground, something big that comes in as a major news. Sony should monopolize on buying Marvel gaming rights, Capcom and such examples.

ah ok gotcha, just wanted to make sure everyone knew that Sony does have some money vested in studios

[Batman1980]

Originally Posted by toefer

If MS pulls this off, I hope Sony works something out with 2k Sports so we can get the NFL 2k series again.

I don't care what Microsoft does as long as they leave Madden alone. I've finally gotten used to the new one and I don't want them screwing it up.

[Lord_Stewie]

Originally Posted by kotsedriver

I bet they're gonna buy Rockstar. The sure do have fantastic history together; Rockstar's lead development platform has always been of the PlayStation consoles, plus Agent is another great exclusive coming from the company.

Originally Posted by aygie

ah ok gotcha, just wanted to make sure everyone knew that Sony does have some money vested in studios

Rockstar would be good investment. I it will be awesome.

Aygie I should have been more clear earlier.

Originally Posted by Wolverine1980

I don't care what Microsoft does as long as they leave Madden alone. I've finally gotten used to the new one and I don't want them screwing it up.

I guess you didn't know that Bill Gates actually made Madden 10 a reality.

[Elandyll]

The scary thought -if- (pretty big if) that were to happen is that it would certainly trigger a radicalization of the gaming landscape.

MS owning EA would push Vivendi-Activision(/ Blizzard) to get close to Sony by natural reaction (EA being their #1 rival).
Exclusives would flourish on one side as well as the other.

Is it good overall for gamers? Probably not. I have nothing against exclusives, but Imo a healthy market is mostly dominated by multiplateforms and gamers being able to find their favorite franchises on their console of choice, while having signature exclusives that confort them in their choice (e.g. Halo/ GeoW for 360, GT5/ GoW for PS3).

Sports on PS3 would be a big hit though, but again I just don't see that takeover happening.

[jadedeath]

Originally Posted by Elandyll

The scary thought -if- (pretty big if) that were to happen is that it would certainly trigger a radicalization of the gaming landscape.

MS owning EA would push Vivendi-Activision(/ Blizzard) to get close to Sony by natural reaction (EA being their #1 rival).
Exclusives would flourish on one side as well as the other.

Is it good overall for gamers? Probably not. I have nothing against exclusives, but Imo a healthy market is mostly dominated by multiplateforms and gamers being able to find their favorite franchises on their console of choice, while having signature exclusives that confort them in their choice (e.g. Halo/ GeoW for 360, GT5/ GoW for PS3).

Sports on PS3 would be a big hit though, but again I just don't see that takeover happening.

I'm with you.

But imagine if it did happen and Blizzard moved towards the Sony camp, they would probably release another WoW expansion where you could play your character on the PS3.

Logan

[Elandyll]

I guess that's it for now.

MS spokeperson quoted on Bloomberg right now:
Microsoft has No Plans to buy Videogame maker Electronic Arts.

Would they tell us if it was true? Probably not. But by that same logic anything that people tell us is -not- true becomes .. True!

[GLaDOS]

Originally Posted by jadedeath

I'm with you.

But imagine if it did happen and Blizzard moved towards the Sony camp, they would probably release another WoW expansion where you could play your character on the PS3.

Logan

Millions of people play World Of Warcraft, and that's no doubt about that. If WoW was ever ported into the PlayStation 3 as a MMO Community, imagine how huge the databases will be.