Wait, Could Microsoft Be Looking To Acquire EA?

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Now here's the kind of news that probably will illicit a ton of speculation, lots of discussion, and endless debates about whether or not Electronic Arts and all of the IPs under its corporate branding will be better served under Microsoft. There's a rumor that Microsoft could be eyeing a purchase of EA.

Polygon is reporting that after talking to four industry analysts, there's a common thread in the reports from these insiders that hint at Microsoft looking to fast-track the company back into the competitive spotlight in 2018 for Xbox exclusives by using the shortcut known as "acquisitions".

Building new IP from the ground up can take anywhere between two to eight years, depending on if established technology is used, or the size of the team, or the scope of the project. One way to bypass that is to acquire a studio and its already established intellectual property. In this case, some analysts believe that there are three major names that Microsoft is looking toward purchasing, including Electronic Arts.

Why EA? Well, obviously because EA and Microsoft already have an established relationship with the EA Access for the Xbox One family of systems, and because EA and Microsoft have had long established relationships with many of the EA Sports titles that came out during seventh gen.

The article is quite lengthy, but the analysts believe that due to Microsoft's capital slush and EA's current valuation, it would make sense that Microsoft could buyout EA and add all of the company's current portfolio of titles to its line-up. There's no doubt about it that it would be a massive blow to Sony, PC gamers and maybe even Nintendo.

It would obviously mean that games like Madden NFL and the FIFA series could become annual Xbox-only exclusives, which would give Microsoft massive software market share. This would also completely fracture the first-person shooter market, with games like Battlefield being relegated to Xbox-only releases.

It would be a toss-up if Microsoft would keep Origin functioning or cull it from the line-up given that it competes directly with its own Windows Store.

But Microsoft would have a large and ready-made portfolio of established IP and franchises at its disposal, and if things worked out it could even mean a transitional license acquisition of Disney's Star Wars, which most fans would probably be happy to see under any other publisher that isn't EA.

However, there's no substantial or concrete evidence that Microsoft will purchase EA. It's just a discussion on the table. Apparently, Microsoft also discussed purchasing Valve, but given the bad blood between Valve owner Gabe Newell and Microsoft (due to Newell being a former employee at Microsoft) a buyout of Valve and its digital platform Steam seems unlikely. Plus Valve's properties aren't the most attuned for building up console market share and are definitely more themed around PC gaming.

Another possible acquisition that the analysts rolled out was PUBG Corporation, which most definitely seems possible given the huge success of PlayerUnknown's Battlegrounds on Xbox One. Of course, that's assuming Tencent Games doesn't transition its distribution deal with PUBG Corporation in China into an ownership one, which is exactly what happened with Tencent Games and Riot Games, the makers of League of Legends.

Of course, this is all speculation for now. What isn't speculation is that Microsoft has a dearth of exclusives on the Xbox One and the company is looking to rectify that problem ASAP in 2018. So we'll see what sort of actions the company takes to address the issue, which could include buying out a big publisher like EA.

Replies • 12

​"There's no doubt about it that it would be a massive blow to Sony, PC gamers and maybe even Nintendo. It would obviously mean that games like Madden NFL and the FIFA series could become annual Xbox-only exclusives, which would give Microsoft massive software market share. This would also completely fracture the first-person shooter market, with games like Battlefield being relegated to Xbox-only releases."

 

As someone who never played any of the EA sports games, and hasn't played any regular EA game in forever, i can happily say good riddance to them if they would never release games on PC anymore. They are responsible for influencing many companies nowadays for doing shady and anti-consumer practices, and they are responsible (allegedly) for liquidating many developers that used to make really great games, not to mention the franchises they killed, like C&C.

 

So you don't have to worry for me console people, you can take EA. I'm more than happy to give them away for free.




If they do acquire EA and make the games xbox exclusives, they might sell a little more xboxes but they would be losing out of a lot of money and they would be the most hated company ever.



nameuser said:

If they do acquire EA and make the games xbox exclusives, they might sell a little more xboxes but they would be losing out of a lot of money and they would be the most hated company ever.

Exactly. I would imagine if Microsoft were to acquire EA, they would earn a lot more money buy continuing to release their titles on all of the platforms they usually do, as was the case with Minecraft when they acquired Mojang. I would think Microsoft has enough smarts and business sense now to avoid making such a terrible mistake by making EA games exclusive to Xbox.

By pulling those titles from other systems, they would just get a bunch of really unhappy fans across a bunch of platforms, and give other companies a shot to take over the sports game market by creating the next big thing and making it available on multiple platforms. Not to mention they would also kill the success of franchises like Battlefield as well...


Interstellar

I think EA is too big for such an acquisition.  BUT - M$ has the capital to pull it off.  

If they were to do this and kill off Origin, it would be a disaster - better for them to make Origin the dedicated PC Gaming platform that they have tried but never succeeded to pull off.


Pomeranian

I'm awaiting official information, I was shocked when disney acquired fox. If this happens, I will be even more shocked.