Microsoft to buy EA?

[kingtonyx]

1up.com (http://www.1up.com/do/newsStory?cId=3176152)

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.

[Renrock]

That would be beyond HUGE if that were to happen. :eek:

[Flawless]

It would be huge, but it would also squash a lot of competition in the marketplace if they decided to go single platform (Which I would honestly doubt.)

[Cpt. Overkill]

That would really, really, really suck.

[kingtonyx]

That would be beyond HUGE if that were to happen. :eek:

yeah, it would be unreal

I mean honestly, there would be the very real possibility of EA titles becoming 360 exclusive... including this one little music game that some of us may have heard of...

[BuRn7 CaK3]

...And Microsoft still need our money! Yet they want to take over EA...

OH MY!

[Explosion2]

NO.
I want ps3 EA games too!

[TeamAliceFTW]

If this happens, I need to get some Microsoft stock for my economics class.

[jonoo24]

NOOooOOooOOoo (http://www.youtube.com/watch?v=Tim5nU3DwIE)

[kingtonyx]

It probably wouldn't be in their best interest to make the EA titles exclusive to 360, but I think that's what would happen.

PS3 and Wii couldn't have an official NFL title.

[BuRn7 CaK3]

It probably wouldn't be in their best interest to make the EA titles exclusive to 360, but I think that's what would happen.

PS3 and Wii couldn't have an official NFL title.

And THAT'S why I think it's a stupid decision.

[Renrock]

lol, I wonder if that was Peter Moore's plan all along :p

[hiimSMAP]

Oh god no no no no no no no no NO!!!!!!!!!!!!!

[moose39]

That's not good, as a PS3 user. A MASSIVELY swift kick to the pants.

[General Lein979]

This may end out badly for you ps3 and wii folk seeing how you wouldn't get rock band or ea games anymore.

[seinman]

I don't understand why people are jumping to exclusivity conclusions. When Microsoft owned Bungie, Halo still came out for PC and Mac. I'm sure games that are cross platform will stay cross platform, with a timed exclusivity window like RB2 had.

[thrillhouse987]

This may end out badly for you ps3 and wii folk seeing how you wouldn't get rock band or ea games anymore.

Rock Band is only published by EA... They could easily find another publisher since Harmonix is a multi-platform developer.

[jonoo24]

I don't understand why people are jumping to exclusivity conclusions. When Microsoft owned Bungie, Halo still came out for PC and Mac. I'm sure games that are cross platform will stay cross platform, with a timed exclusivity window like RB2 had.

Having AAA title X on PS3 is much worse(in MS's eyes) than having it on PC.

[ham736]

If this happens, then many of my favorite game series need to find new publishers ASAP!!! No more Rock Band, Burnout, Battlefield, or Mirror's Edge games for my PS3. Although, a lot of their sales come from both the PS3 and WII, so they would lose a lot of money if they went 360 exclusive.

[moose39]

Good luck getting Sony to buy Activision

[ThunderCurls]

I don't understand why people are jumping to exclusivity conclusions. When Microsoft owned Bungie, Halo still came out for PC and Mac. I'm sure games that are cross platform will stay cross platform, with a timed exclusivity window like RB2 had.

Big difference.

[Sarge51]

I don't really know EA for much other than The Sims.

But, go for it Microsoft!

[BuRn7 CaK3]

I don't really know EA for much other than The Sims.

But, go for it Microsoft!

EA - Rock Band, Battlefield, The Sims, Madden, and probably a few other big ones that would SUCK to be exclusives. Well The Sims don't have games on the console anymore.

[Sarge51]

D'oh, right. Rock Band. lol

I miss the console versions of The Sims. I wish they'd bring some new ones to the table. Next-gen'd up for us.

[BuRn7 CaK3]

I actually really want The Sims 3 for console. I played the CRAP out of The Sims 2 on PS2.

[FloodOne]

This would spell the end of the industry if it comes to pass.

A one console future is infuriating to me. I would stop gaming the moment I no longer had choice.

[ThunderCurls]

This would spell the end of the industry if it comes to pass.

A one console future is infuriating to me. I would stop gaming the moment I no longer had choice.

I'm glad I already own/play the 360, so there is no need for me throw a dramatic tantrum like this guy.

[Cpt. Overkill]

I'm glad I already own/play the 360, so there is no need for me throw a dramatic tantrum like this guy.

Flood owns a 360. He's saying that he doesn't want a one console future.

[ArchangelZero]

Good Lord....if they make titles 360 exclusive...we're all doomed!:eek:

But I still like Zune.

At least Bioware hasn't been bought out yet....then I'd be in real trouble...

[ham736]

I'm glad I already own/play the 360, so there is no need for me throw a dramatic tantrum like this guy.

Its not just him, its most of the PS3 Community that doesnt have both consoles. Im upset because i overly enjoy Burnout Paradise on the PS3, and i have already bought so many DLC rock band songs that if they went exclusive and HMX still published another game (rock band 3)under them, then i would not only have to get a console, 3-5 rock band games, but i would also have to get the hundreds of DLC songs for it.

I hope its just a rumor, not true because it would really upset me.

[ThunderCurls]

Its not just him, its most of the PS3 Community that doesnt have both consoles.

Yes I understand.

[Sarge51]

If Bioware was bought by Sony/PS3 I'd become a PS3 fanboy.

[ThunderCurls]

I don't understand why a one console future would be a bad one...

All games, franchises and features on one consoles sounds pretty darn nifty to me.

[Sarge51]

No competition = Bad features/games.

[FloodOne]

I'm glad I already own/play the 360, so there is no need for me throw a dramatic tantrum like this guy.

Yeah I own both already jackass, that's not my concern. Taking choice and competition away from a market that thrives off of innovation such as this one does is bad news. Without Sony, we could have been playing cartridges for years longer. Without Microsoft, online capable consoles would not exist.

If there is a one console future in the cards, who will be around to challenge MS to innovate in the gamespace?

Look at how MS treated the PC market for years, and tell me that doesn't concern you in any way.

[ThunderCurls]

No competition = Bad features/games.

Not necessarily. Competition would still exist, between franchises.

[Explosion2]

I don't understand why a one console future would be a bad one...

All games, franchises and features on one consoles sounds pretty darn nifty to me.

because the people that have PS3's or wii's (like me) would have to switch (by paying money, which I happen to not have a lot of).
That's really the only problem I have with it. if all of a sudden they found out a magical way to make games that worked on all 3 consoles at the same time (and in the next generation only made 1 console), I would be perfectly fine with only needing one console for all the best games.

[R33DH4M]

good news. I have no problems with Microsoft and their products.

[Flawless]

good news. I have no problems with Microsoft and their products.

Good news... how?

[R33DH4M]

Good news... how?

I liked the idea of having EA exclusive to 360 (:<

[Runesmith]

If this happens, I secretly hope Microsoft forces EA to stop making Madden games so that games more deserving of being in the Top 10 bestsellers list (*cough*Beyond Good & Evil*cough*) will have their chance to actually bring in revenue for smaller companies that would otherwise go bankrupt because their games are too innovative or unique for the casual gaming set to understand.

Oops.

[jonoo24]

I liked the idea of having EA exclusive to 360 (:<

...How in the hell does it affect the 360 to have multi platform games?

[FloodOne]

...How in the hell does it affect the 360 to have multi platform games?

The more copies of a game they sell on the 360, the higher the profit margin is.

The only way I could see Sony and Nintendo surviving such a move, would for them to merge, and possibly snap up Square Enix as well. Then you would have a situation where the two consoles on the market are appealing to two entirely different demographics.

[jonoo24]

The more copies of a game they sell on the 360, the higher the profit margin is.

The only way I could see Sony and Nintendo surviving such a move, would for them to merge, and possibly snap up Square Enix as well. Then you would have a situation where the two consoles on the market are appealing to two entirely different demographics.

I realize this, but that guy wants EA to be bought, and the other consoles to die. That's just fanboyism.

[nicko68]

That would really really suck if RB were to be 360 exclusive. There are so many Wii owners who buy the games, I just can't see it happening. Activision would be happy though.

I love RB but there is no way in hell I would buy a 360 just for that game, especially since I already have several Wii guitars, and over 400 DLC tracks.

[FloodOne]

Update from a Microsoft rep.

http://www.psu.com/%5BUPDATE%5D-Rumor--Microsoft-interested-in-buying-EA-News--a008163-p0.php

UPDATE: A spokesperson for Microsoft quelled rumors that the company was interested in purchasing Electronic Arts. Late Wednesday the company said it does not plan to buy EA. “We have no plans to acquire EA,” the Microsoft spokesman said, according to a report on MarketWatch.com.

It looks like this rumor will die as fast as it started. We’ll keep you posted if we hear more information regarding this news.

*********

ORIGINAL ARTICLE: There’s big news in the world of unsubstantiated acquisition rumors. We cannot emphasis enough that this is just a rumor at this time, but according to a report from Reuters, Microsoft may be interested in purchasing Electronic Arts.

“There’s talk that Microsoft might be interested in acquiring Electronic Arts. It’s unsubstantiated chatter, but it’s out there,” said Frederic Ruffy, options strategist at WhatsTrading.com.
For any investment hounds, EA shares jumped today. We’ve asked EA for a comment and will keep you posted when they respond.

We’ll wait before we hear more information before we speculate as to how a possible EA buyout by Microsoft would impact the publisher’s release of PlayStation 3 titles.

Check back later for more information as news breaks.

[kiggidykev]

My Sarah on the news that it was a rumor: "Good, that would have been dumb"

[Apples]

Haha, too many "the sky is falling" "everything is going to go 360 exclusive" comments in this thread.

Buying a company to scuttle 50% of its revenue and earnings potential would be foolish to even the most amateur business student. They would lose more in Wii/PS3 revenue than they would gain in 360 sales.



And that's assuming it's a real rumor and assuming the acquisition passed the inevitable anti-trust challenge from the government.

[californication]

April fools?...

[ArmsAreLoud]

Could Microsoft even afford EA, if this is true (it ain't)? Sure, Microsoft is huge, but EA is almost as big and is #1 as far as 3rd Party Publishers go.

[CCDaDon]

That... isn't even legal... If they did even try it it wouldn't even get past the approval stage.

Plus M$ says it's bogus, I believe them. Move along.

[timmay9]

EA doesn't own Harmonix....so those b*tching about an unsubstantiated rumor that most likely would be met with its share of problems with both boards of directors, shareholders, etc., which would probably result in a similar situation to the Yahoo (an even bigger company) one.

[Lawdog1521]

EA doesn't own Harmonix....so those b*tching about an unsubstantiated rumor that most likely would be met with its share of problems with both boards of directors, shareholders, etc., which would probably result in a similar situation to the Yahoo (an even bigger company) one.

Right. It’s like that unsubstantiated rumor I was married to Kate Hudson. But 6 months in prison and a judges restraining order against me proved there was no truth to it.

[BuRn7 CaK3]

Thank goodness they shut this down. It would've been a horrible idea anyways.

[nicko68]

Haha, too many "the sky is falling" "everything is going to go 360 exclusive" comments in this thread.

Hey, you don't mess around with Rock Band 'round these parts. Haven't you noticed some of us are quite rabid? :)

[RubyBass]

As long as we still get "EA Sports - It's in the game", I'm cool with this.

[gosox333]

Whew, glad to see that debunked. I would be lying if I said this didn't make me nervous....

[nicko68]

EA doesn't own Harmonix....so those b*tching about an unsubstantiated rumor that most likely would be met with its share of problems with both boards of directors, shareholders, etc., which would probably result in a similar situation to the Yahoo (an even bigger company) one.

Oh, I know MTV bought HMX, but for some reason I thought EA bought MTV. Then you're right, it wouldn't be an issue.

I do still hate the XBox timed exclusives though. Makes you wonder why Microsoft feels the need to resort to this kind of thing to drive sales.

[Jordanfre]

Yes, yes. This news is delicious! Hopefully they buy them out and make all EA games 360 exclusive so PS3 fanboys can shut up and bow down to the awsomeness of the 360!

[Lawdog1521]

Yes, yes. This news is delicious! Hopefully they buy them out and make all EA games 360 exclusive so PS3 fanboys can shut up and bow down to the awsomeness of the 360!

I have no problem with the 360. I just choose not to have one and I really don't like being forced to pick one thing. If in theory Microsoft did drive the others out, I’d stop playing videogames altoghether.

[iamtheddrman]

I have no problem with the 360. I just choose not to have one and I really don't like being forced to pick one thing. If in theory Microsoft did drive the others out, I’d stop playing videogames altoghether.
Comments like this crack me up. We heard the same stuff around here about the stars patch, Moving Pictures, and a million other features, yet 99% of the people who claimed they'd "never play Rock Band again!!!111!" are still here playing the game. You'd still play video games, it would just be a different atmosphere.

Furthermore, why the heck did everybody jump on the bandwagon that MS would force everyone else out and would make EA 360-exclusive? That would be the DUMBEST thing they could do, considering the Wii has outsold both the 360 and the PS3 handily. They wouldn't make it 360-exclusive because they would lose a TON in software sales (which are high profit) for minimal gains in hardware sales (very low, if any, profit). MS isn't stupid and wouldn't do such a foolish thing, so all this talk of exclusivity is ridiculous. Not to mention it was just a rumor, which has now been debunked :rolleyes:

At worst, the 360 would've gotten timed-exclusives out of it. At best, they'd have the capital to make HUGE leaps in video game design (though that wouldn't have been likely :p)

[bmaninc]

Its easy for you to say, DDR. You have a 360. I don't and can't afford one. Timed exclusives would just piss me off and since I don't buy very many games to begin with, I probably wouldn't buy any games at all.

[iamtheddrman]

Its easy for you to say, DDR. You have a 360. I don't and can't afford one. Timed exclusives would just piss me off and since I don't buy very many games to begin with, I probably wouldn't buy any games at all.
So you didn't buy Rock Band 2? It was a timed exclusive.

Sure, it would be annoying to have to wait, but why would it be the end of the world as we know it? There are still tons of games that come out in Japan first and we have to wait on them to get to North America, but I don't see a bunch of people rushing out to buy Japanese 360s or whatever to play them. Even if I didn't own a 360, I wouldn't be all stressed out about it like some people around here are. Sometimes I think people need to take a step back from their games and go outside for a little bit...

[Lawdog1521]

Comments like this crack me up. We heard the same stuff around here about the stars patch, Moving Pictures, and a million other features, yet 99% of the people who claimed they'd "never play Rock Band again!!!111!" are still here playing the game. You'd still play video games, it would just be a different atmosphere.

Furthermore, why the heck did everybody jump on the bandwagon that MS would force everyone else out and would make EA 360-exclusive? That would be the DUMBEST thing they could do, considering the Wii has outsold both the 360 and the PS3 handily. They wouldn't make it 360-exclusive because they would lose a TON in software sales (which are high profit) for minimal gains in hardware sales (very low, if any, profit). MS isn't stupid and wouldn't do such a foolish thing, so all this talk of exclusivity is ridiculous. Not to mention it was just a rumor, which has now been debunked :rolleyes:

At worst, the 360 would've gotten timed-exclusives out of it. At best, they'd have the capital to make HUGE leaps in video game design (though that wouldn't have been likely :p)

I don’t think they will, hence my use of the word theory. And while I’m glad my post gave you a giggle and reinforced your feelings of superiority, the fact I would stop playing videogames over buying a 360 isn’t a statement I won’t back up.

Why? Because there was a ten year span where I didn’t touch games. In fact, even today I’ve haven't played most of the big name titles. I buy maybe two a year. So it’s really not that big of a loss for me. But thanks for telling me how I am.

[Billy-93]

NOOOOO

M$ F OFF


I hate ms, they try to take over everything. I doubt it will happen but if it does no more FIFA :( :( :(

I will not buy an xbox so I dont care. Big companys like EA should be on there own. Id hate sony to buy it too cos it would be seriously harsh on 360 lads.

MS just f off you greedy whores

[CCDaDon]

I think it's funny that some people think it's possible that this could happen. Even if they tried and they actually got a deal accepted M$ wouldn't own EA because it wouldn't be approved. It wouldn't even be close to being approved.

[KallenS]

Scince I actually dont like EA's most games very much, this dosn't bug me very much. I allready own RB so I'm safe. I'm a PS3 owner.

[FloodOne]

Comments like this crack me up. We heard the same stuff around here about the stars patch, Moving Pictures, and a million other features, yet 99% of the people who claimed they'd "never play Rock Band again!!!111!" are still here playing the game. You'd still play video games, it would just be a different atmosphere.

Furthermore, why the heck did everybody jump on the bandwagon that MS would force everyone else out and would make EA 360-exclusive? That would be the DUMBEST thing they could do, considering the Wii has outsold both the 360 and the PS3 handily. They wouldn't make it 360-exclusive because they would lose a TON in software sales (which are high profit) for minimal gains in hardware sales (very low, if any, profit). MS isn't stupid and wouldn't do such a foolish thing, so all this talk of exclusivity is ridiculous. Not to mention it was just a rumor, which has now been debunked :rolleyes:

At worst, the 360 would've gotten timed-exclusives out of it. At best, they'd have the capital to make HUGE leaps in video game design (though that wouldn't have been likely :p)

You must be oblivious to the fact that a one console future is not in the best interest of the consumer. North America is the largest market in the industry, and EA's IP's do incredibly well here. With people being offered no alternative on the hardware front, the services offered would become fewer and fewer until, eventually, we get served a **** sandwich and are told to like it.

Think about it. If it wasn't for the ps3 being sold as an alternative to the 360, do you really think that MS would've extended the warranty on their faulty console? Not likely, because what are you going to choose instead of the Xbox. The Wii hardly offers the same experience as the 360 does, so we would all be at MS's mercy if we chose to continue to play videogames.

I, for one, have no problem boycotting companies if they don't serve my best interest.

I haven't bought an Activision game in years, I don't shop at Wal-Mart, and I refuse to watch MTV. It may have no impact on their bottom line, but I know I'm doing what I feel is right.

If there was a one console future, I would be done playing games, simple as that.

[Explosion2]

it's funny, when I play an EA game, I occasionally think that I'm playing a microsoft game, because EA has been there since the beginning with microsoft (NFS 1, anyone?).

[Xander730]

Microsoft released a statement saying its not true

http://www.thesixthaxis.com/2009/09/24/ms-no-plans-to-buy-ea/

[iamtheddrman]

You must be oblivious to the fact that a one console future is not in the best interest of the consumer. North America is the largest market in the industry, and EA's IP's do incredibly well here. With people being offered no alternative on the hardware front, the services offered would become fewer and fewer until, eventually, we get served a **** sandwich and are told to like it.

Think about it. If it wasn't for the ps3 being sold as an alternative to the 360, do you really think that MS would've extended the warranty on their faulty console? Not likely, because what are you going to choose instead of the Xbox. The Wii hardly offers the same experience as the 360 does, so we would all be at MS's mercy if we chose to continue to play videogames.

I, for one, have no problem boycotting companies if they don't serve my best interest.

I haven't bought an Activision game in years, I don't shop at Wal-Mart, and I refuse to watch MTV. It may have no impact on their bottom line, but I know I'm doing what I feel is right.

If there was a one console future, I would be done playing games, simple as that.

I'm not oblivious to that AT ALL, which is precisely why I said it would be foolish for MS to not offer their products on other consoles. A one console future would suck, because every major advancement added by one console manufacturer must be added to all the other for the next generation so that they don't appear to be lagging behind. The type of competition that the video game industry has is the biggest driving force to innovation in the field. Without competition, the field WOULD stagnate and the quality of games and hardware would severely drop off. If we'd only had one console for the past 10 years, we wouldn't have an online community, motion control, or a number of other awesome features that we currently enjoy on the various consoles.

What I'm saying is that even if this deal was true, it wouldn't secure a one console future. If MS was able to somehow acquire more publishers than just EA, I'd be more inclined to believe that theory, but despite EA's size, they couldn't force Sony or Nintendo out of business by themselves. Sony already develops their own sports games, and has plenty of exclusives to keep it around (same for Nintendo with the exclusives). It would definitely impact them, but I don't think it would shut them down altogether.

I have no problem boycotting certain companies either. I rarely shop at Wal-mart and haven't eaten at McDonald's for years. I just think that most people who claim they'd boycott games altogether are flat out lying. People like yourself who would actually follow up on that are few and far between.

[FloodOne]

I have no problem boycotting certain companies either. I rarely shop at Wal-mart and haven't eaten at McDonald's for years. I just think that most people who claim they'd boycott games altogether are flat out lying. People like yourself who would actually follow up on that are few and far between.

True. All the people here claim their disdain for Activision, yet I bet most of them will be buying MW2.

[Onslaught_fei]

Most titles wouldnt exclusive, they would be timed exclusive with better perks and features and more dlc.

[Soja]

True. All the people here claim their disdain for Activision, yet I bet most of them will be buying MW2.Not I. Not even used.

[Kawalimus]

Let's just have one corporation run everything. That always works out great.