Microsoft has 'no plans' to purchase EA [update]

by Alexander Sliwinski { Sep 23rd 2009 at 2:40PM }

We have no idea where this meshugaas is coming from, but Reuters is reporting unsubstantiated rumors that Microsoft is interested in purchasing the second place third-party software publisher, Electronic Arts. Shares of EA are up today (around eight percent as of this writing) on the speculative purchase.

Although we've yet to hear from EA, Microsoft was immediate with its response of: "We don't comment on rumors or speculation." If true, the acquisition would be ... um, wow.

Update 2: Microsoft has followed up on its earlier statement, telling Joystiq: "Microsoft has no plans to purchase Electronic Arts."

Update: Wedbush Morgan analyst Michael Pachter spoke to IndustryGamers and thinks the whole idea is rubbish. "[It makes] no sense at all," he says. "One platform exclusives would likely nullify NFL exclusivity, could kill off all sports and other licenses. EA's value on one platform is probably half its value to a multi-platform buyer (such as a media company)." A handful of other analysts weigh in, pouring even more water on the increasingly unlikely fire. We'll bring you more information as we hear it.

[Via The Street; thanks to everyone who sent this in!]

Tags: business, ea, electronic-arts, michael-pachter, microsoft, reuters, rumor

Reader Comments (Page 1 of 5)

Alton Brown [ XBL: LordToastington, Soon-To-Be-PSN: OrIsItAltonBrown] @ Sep 23rd 2009 2:43PM

Oh shit...

dark_inchworm (stronger than never, ever before) @ Sep 23rd 2009 2:48PM

This is Maddenness!

Ten Dolla Bill @ Sep 23rd 2009 2:49PM

I don't even care if this is true or not, my ERTS shares are skyrocketing today! Keep the rumours coming!

Alton Brown [ XBL: LordToastington, Soon-To-Be-PSN: OrIsItAltonBrown] @ Sep 23rd 2009 2:50PM

What a Crysis!

Goddamn, that one sucked.

dark_inchworm (stronger than never, ever before) @ Sep 23rd 2009 2:59PM

If the rumors of Microsoft's attempt to Command & Conquer EA are true, this System Shock would leave a Mass Effect strong enough to send the rest of the industry into Dead Space.

ok, I'll leave the rest of these to you guys

Alton Brown [ XBL: LordToastington, Soon-To-Be-PSN: OrIsItAltonBrown] @ Sep 23rd 2009 3:00PM

Wonder what good ol' Bobby Kotick thinks of all this hoo-hah?

Lunastra78 (PSN: lunastra78) @ Sep 23rd 2009 3:02PM

lol, good one inchworm :)

poop @ Sep 23rd 2009 3:11PM

Microsoft's exclusivity game would turn the newer gamer-oriented EA into a Bad Company, too.

oolz @ Sep 23rd 2009 3:15PM

Microsoft woudln't change much. All the big, common, hot titles would stay multiplatform simply because of the money involved. What it would do is allow MS to pick and choose new IP's to be exclusives. That would be a huge win for them.

WiNG [XBL&Steam: WiNGSPANTT] from lifeinagame.com @ Sep 23rd 2009 3:21PM

This move will really change the software Battlefield. Microsoft is walking the Mirror's Edge and coudl Boogie its way closer to becoming a Bad Company.

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SimCity

johnnynumber5 @ Sep 23rd 2009 3:40PM

"All the sony fanboys are shitting themselves right now...I love it."
You sick fuck. What kind of freak enjoys watching people shit themselves? You have some sort of a fecal fascination, eh?

"Even if this doesn't happen (which I don't see why it couldn't and why it won't) just the panic among the sony fanboys at Joystiq is worth it."

Is that you Sprinkles?

Thought so. It was good when you went in for your white blood cell count deficiency treatmeant because Joystiq was better for it. Now that your back again I can only hope ... well, nevermind.

So, in the last day or so we have rumors of best Buy purchasing Gamestop and now Microsoft purchasing EA ... Awesome. I doubt either one of them would happen but it would sure alter the gaming landscape.

Night Elve @ Sep 23rd 2009 3:45PM

I'm not an expert here, but this should not raise Anti Monopoly concerns, which in turn would make the Government to investigate the possible acquisition?

Harrison Rose @ Sep 23rd 2009 3:50PM

This would be a very good thing for MMOG developers, the fastest and strongest growth segment of the computer game industry!

Courtney @ Sep 23rd 2009 3:47PM

It's not really a Black and White issue, and anyone who can make full sense of it deserves a Medal of Honor. I really worry about Joystiq readers getting Burnout from reading about all of these takeovers though.

arrrgh @ Sep 23rd 2009 3:50PM

I have a "feeling" this could really have an "impact" on the console landscape this gen NHL'96

damnit

Ben @ Sep 23rd 2009 3:55PM

Microsoft buying EA wouldn't create a monopoly... EA is a company that has a lot of competition, if MS bought EA and all of its competition, then it would be a monopoly.

time @ Sep 23rd 2009 4:23PM

no no no no no no no no no no i don't like the sound of this ONE BIT

Bradwart @ Sep 23rd 2009 4:27PM

This is likely to Madden Sony and Nintendo, and cause the DoJ to come down on this Bad Company on their courtroom Battlefield, which will create a legal Crysis and cause a Dead Space to occur in the gaming world. Gamers will give up due to Burnout.

More at 11.

VGMaster @ Sep 23rd 2009 4:31PM

What a Shock Wave ! Someone should stand up to this, we need Freedom Fighters to prevent Microsoft from becoming the Godfather of the industry and therefore having complete Monopoly.

Chibi Chaingun - blackhivemedia.com @ Sep 23rd 2009 5:16PM

This could leave a serious Road Rash caused by the Need for Speed attitude of MS and its sharp Mirror's Edge.

The survivors of this aftermath will have no choice but to Skate or Die.

Dale @ Sep 23rd 2009 5:23PM

Everyone who contributed game name puns, thank you for making these comments infinitely more bearable than they had any right to be. :D

nillaP @ Sep 23rd 2009 6:22PM

A merger would create an Army of Two.

ELUNO @ Sep 23rd 2009 2:43PM

Oh wow... That would really change a lot of things...

drumwiz86 @ Sep 23rd 2009 3:10PM

Think about if every EA title became 360 only

FNG @ Sep 23rd 2009 3:17PM

it would be like the PS2 and the xbox were before EA games joined xbox live. they were only on the PS2 with online capability. this is why MS killed off their sports games. EA would only come on board if they did, and were allowed to use their own servers.

this would be huge for MS to do this. FIFA and NFL only on an MS console or PC. good luck with that Sony

rickjamess04 @ Sep 23rd 2009 3:39PM

Would having Madden on one console be legal? I mean Madden is the only franchise that is NFL licensed.

Although stupid Directv has exclusive deals with the football season package....

ELUNO @ Sep 23rd 2009 3:43PM

I don't think MS would block those games for other consoles...
Timed exclusives... now that's something...

dagamer43 @ Sep 23rd 2009 4:17PM

It's really the unique third-party IP that they'd keep off of other consoles. However, I have a feeling that they'd be really dumb not to target the most popular console of all, even if it's not their own.

But it would be a HUGE blow to Sony.

Though I'm wondering what such a deal would look like. I mean, most of EA's IP is designed to sell from volume. Devoting games to be just 360 only is a nice way to piss people off, especially since they've bought the console already. It wouldn't be seen as a good thing for gamers since those with a 360 wouldn't benefit (wouldn't hurt though) but those with a PS3 would loose out. You would see epic style protests.

And I think they'd try to purposely kill the PS3 versions of games too.

sk8monroe81 (PSN--XBL) @ Sep 23rd 2009 4:55PM

MS wouldnt make every EA title exclusive because they would lose out on millions of copies sold and be leaving BILLIONS of dollars on the table.

now for games like mass effect and others... watch out...

but madden would probably always be on every console available...

Eh @ Sep 23rd 2009 5:01PM

EA wouldnt make nearly as much money being 360 exclusive. If MS buys them it wont change much, they would be forced to put EA's best interests in front of their own or else the shareholders wouldnt allow it.

EA is way too big to be able to develop for just one console, they need the income from multiple consoles or theyll collapse.

Zerokku @ Sep 23rd 2009 5:13PM

I could see nintendo still having some EA games out of this. I don't know about the wii, but the DS has a handful of Microsoft Studios games. Blue Dragon, Viva Pinata, Age of Empires ect.

tonez @ Sep 23rd 2009 6:45PM

I hate EA. Theyve bought so many good developers and made them their bitch. Now that Microsoft (highly unlikely) will buy them, it's time show them whos the bitch. EA exclusive to 360 is like Ps3 becoming the next Dreamcast. Games are what makes a console survive.

This is so evil. I LOVE IT!! GO FOR IT MICROSOFT!!!

CTC XBL-supapaypamawio PSN-ctclaw @ Sep 23rd 2009 2:43PM

That would be insane if all of EA's properties became Microsoft exclusives.

D dogg @ Sep 23rd 2009 2:55PM

If Microsoft were a smart business, it wouldn't keep them exclusive. Royalties royalties royalties. You think EA became big by keeping Madden on one console or C&C on PC only?

Think... THINK.

copa @ Sep 23rd 2009 2:56PM

Which is also why this is extremely unlikely.

EA's market valuation is far, far higher as a multiplatform publisher, than it is as a publisher focused on the second-place console.

Microsoft would have to pay over market value just to acquire the company, and then watch the value drop once they tried to stop selling Madden on the Nintendo/Sony platforms.

Courtney @ Sep 23rd 2009 3:00PM

Also, consider the licensed properties that EA has, particularly the sports brands. If those were to suddenly go exclusive, the respective rights holders would cut their deals with EA as soon as possible to take their franchises to Activision (or someone who would go multiplatform with them).

It's also highly likely that in the license agreements, EA has to produce any number of games for multiple platforms.

Nothing about this deal makes sense.

Troy Powers (PSN: TroyPowers) @ Sep 23rd 2009 3:10PM

There go my dreams of ever playing a SSX title developed for the PS3. :(

Massmass @ Sep 23rd 2009 3:14PM

For that very reason I doubt the government would approve the buyout. It would seem to be very anti competitive.

rv @ Sep 23rd 2009 4:49PM

All of the people arguing MSEA would stay multiplat for the royalties make no sense. If all of Ea's games were on the 360, everyone would buy a 360, not a ps3. They would get a massive amount of 360 purchases. I would think that an overwhelming majority of people who were looking to buy consoles would purchase a 360 after this. A lot of ps3 owners would also purchase a 360. How many people, seeing the massive amount of games that are about to go 360 only, would still buy a ps3? The reasoning that they get too many royalties from multiplat titles, and therefore would stay multiplat after this proposed acquisition, is incorrect.

I do believe they wouldn't do it for antitrust reasons (fear of getting broken up). But I dont think sony, nintendo, or anyone else could win an antitrust case against MS-EA due to the number of other game makers out there (actiblizzard, capcom, etc) who would still be multiplat. So I believe there is no fear of an antitrust case either.

Consider this as well. Mac Osx has been getting quite a few game devs to code for their OS. If MS were to purchase ea, they would not have to worry about mac getting any of EA's pc games.

Finally, another hypothetical. The wii does not directly compete with the 360. What if MS were to still release Wii games, but also only code for 360 games. Meaning, the wii would still get tiger woods golf, etc, and games like dead space, mirrors edge, would be for the 360 only now, not ps3. They would still be making an assload from the wii, and the 360, while simultaneously, in essence, killing of a competitor in the ps3.

I think that this deal makes a whole lot of sense for MS.

kevin @ Sep 23rd 2009 2:45PM

how sweet would that be, let it happen.

SoulBlade @ Sep 23rd 2009 2:48PM

it wouldn't be..

XLM @ Sep 23rd 2009 2:56PM

What would be so sweet about it?

Seriously? What "good" would come out of it aside from some fanboy gloating?

If it is true and it does happen, I would be a little miffed as a shareholder if MS were to leave all the multi platform money on the table just for the MS platform exclusivity, I don't think they would gain the lost money back in new users.