Topic: Please say this ain't going to happen....

[MysterD]

Microsoft is lookin' to buy EA out.

Microsoft May Purchase Electronic Arts
EA stock jumps in anticipation of possible takeover.
By Scott Sharkey, 09/23/2009

Scuttlebutt is going around Wall Street regarding a possible takeover of Electronic Arts at the hands of Microsoft. Talk of the potential buy has been dismissed as "unsubstantiated chatter" by Reuters, but rumors among traders have already served to drive up the stock of both companies. EA stock is up 5.24% to $19.36, while MS increased by 0.9% to $26. Some traders, at least, are banking on the possibility.

Whether purely the product of imagination or a legitimate piece of inside info, the rumor is plausible enough. The last year has seen a steady fall in videogame sales, the largest sales drop in nine years, leaving EA in a potentially weakened state. Such acquisitions have happened increasingly often, as in the case of "Activision Blizzard", and Zenimax/ID, and even EA's own attempts to acquire Take-Two.

Just how such a buy would change the face of the industry is difficult to comprehend. With EA dominating 20% game publishing market share and Microsoft 35% of hardware sales, the two combined would represent an absolute monolith. Or, at the very least, a chance to have a playable John Madden character for Halo 3: ODST's Firefight mode as DLC.

[W7RE]

I guess it's because I have an Xbox 360 (and have had no hardware problems with it), but I don't see what would be so bad about this. I mean I guess MS has been pretty anti-PC lately and most EA stuff would probably go Xbox exclusive, but I've pretty much accepted that developers don't care about the PC anymore. (Infinity Ward held a multplayer MW2 event recently and the place was plastered with Xbox logos, and an MS rep was at the door. The game was being played on Xboxes. It's obviously an Xbox game first, and anything else second. Crysis is going console. Alan Wake.)

From Microsoft's point of view it makes a lot of sense, because they have very little first party development for the 360.

[MysterD]

I guess it's because I have an Xbox 360 (and have had no hardware problems with it), but I don't see what would be so bad about this.

Isn't EA like 20-30% of the market for games sold?

So, basically -- this would cut off Sony from EA's in-house stuff. So, we're talking lots of IP's and franchises here -- Mirror's Edge; Dead Space; Mercenaries series; Sims series; anything Bioware does (Dragon Age; KOTOR games; Mass Effect series; Jade Empire series); Battlefield series; C&C series; etc etc.

I don't know what the NFL would say about Madden, though. I'm betting they'd want their NFL games on ALL platforms; that'd be my guess, I could be wrong. I don't know what the PGA and Tiger Woods would say about the Tiger Woods games -- as they might want their game on multiple systems, as well. That all could be very...interesting...

Sony losing EA would hurt big time, I'd say. Whether we all like it or not or feel somewhere in the middle, EA sells lots of games regardless of the platform.

I mean I guess MS has been pretty anti-PC lately and most EA stuff would probably go Xbox exclusive, but I've pretty much accepted that developers don't care about the PC anymore. (Infinity Ward held a multplayer MW2 event recently and the place was plastered with Xbox logos, and an MS rep was at the door. The game was being played on Xboxes. It's obviously an Xbox game first, and anything else second. Crysis is going console. Alan Wake.)

From Microsoft's point of view it makes a lot of sense, because they have very little first party development for the 360.

Of course it makes sense for Microsoft -- they'd be taking a lot of $$ away from Sony.

[Pugnate]

Yea there is no way in hell that's happening. Absolutely no way. Makes no sense, because EA is profitable only because it goes cross platform (including PC) and secondly, if MS does buy them, a majority of EA's licenses will revert due to clauses.

So yea, mark my words.

NOT

GOING

TO

HAPPEN.

edit:

It would make more sense for a software giant to buy them. MS is not a software giant as far as gaming is concerned. They are 33% of the console hardware wars, and in order to use EA they would have to restrict them only to their console.

Consider how expensive it would be to buy EA. Would MS really cut off EA's balls after that? They would never recoup their losses.

Like I said, only a software giant would find it sensible to buy EA, as it would expand their line of business. And if you think about it, EA is the software giant.

[MysterD]

Yea there is no way in hell that's happening. Absolutely no way. Makes no sense, because EA is profitable only because it goes cross platform (including PC) and secondly, if MS does buy them, a majority of EA's licenses will revert due to clauses.

If MS buys EA, I could see a lot of Microsoft-EA (in-house) games being PC and X360 only. That's one LESS system to develop games for, basically. Plus, co-developing for the PC and X360 are say closer to each other than say the other combos to co-develop one game for (X360 and PS3; or PC and PS3; Wii and PS3).

But, yeah -- I don't see the NFL, NBA, PGA, or any other licenses working out so well, if they wanna force those EA games as X360 Exclusives, shutting out say other consoles -- since those sports companies they are making games for would probably want the games on ALL console platforms.

EDIT:

Consider how expensive it would be to buy EA. Would MS really cut off EA's balls after that? They would never recoup their losses.

Well, EA's game sales have been WAY down, especially in the last year or two...

So, now would probably as good of a time as any as EA will probably be cheaper to buy if M$ wants EA, right...?

[Pugnate]

Microsoft doesn't want to develop games for the PC. They know their Windows software will sell no matter what, and they get no profits from 3rd parties releasing games on Windows, so they don't care to promote it as a games platform.

They shut down Ensemble studios, (which was still profitable) because they want the Xbox, and only the Xbox to succeed. Even though Halo sold a gazillion copies on Windows, they still don't care for it to appear on their platforms. As long as Windows doesn't have any competition, they won't care. If MS were to control EA, EA would stop releasing PC titles.

<i>Well, EA's game sales have been WAY down, especially in the last year or two...</i>

EA is still worth about 8 billion I think. Left as it is, MS would need at least 6 years before EA pays for itself.

Consider that EA's most profitable franchise is the FIFA football series, and it sells like crack in Europe on the 360, the PS3, the PS2 etc.

None of this makes sense.

But both companies must be happy this rumor is flying, because their respective stocks are going up, albeit temporarily.

[idolminds]

Yeah, I have to agree with Pug. This would be a horrible move for EA and MS.

[Quemaqua]

Agreed.  But the thought still sickens me.  I can't even imagine what kind of holy monstrosity it would be if they somehow joined together.  I'd have to train for 20 years to be a secret ninja assassin and then kill all the executives.

[MysterD]

Agreed.  But the thought still sickens me.  I can't even imagine what kind of holy monstrosity it would be if they somehow joined together. 

My thoughts exactly.

As if I don't already often have some axe to grind w/ Microsoft and EA.
Just imagine the huge-sized axe I'd have to grind if they became Microsoft-EA.

It'd make Cloud's sword look like a miniature.