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!]
Reader Comments (230)
Posted: Sep 23rd 2009 2:59PM darkinchworm said
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
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ok, I'll leave the rest of these to you guys
Posted: Sep 23rd 2009 3:00PM (Unverified) said
Wonder what good ol' Bobby Kotick thinks of all this hoo-hah?
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Posted: Sep 23rd 2009 3:11PM (Unverified) said
Microsoft's exclusivity game would turn the newer gamer-oriented EA into a Bad Company, too.
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Posted: Sep 23rd 2009 3:21PM WiNGSPANTT from TopTierTacticsco said
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
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SimCity
Posted: Sep 23rd 2009 3:50PM (Unverified) said
This would be a very good thing for MMOG developers, the fastest and strongest growth segment of the computer game industry!
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Posted: Sep 23rd 2009 4:23PM ripvanwinkle said
no no no no no no no no no no i don't like the sound of this ONE BIT
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Posted: Sep 23rd 2009 4:27PM (Unverified) said
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.
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More at 11.
Posted: Sep 23rd 2009 4:31PM (Unverified) said
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.
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Posted: Sep 23rd 2009 5:16PM Chibi Chaingun said
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.
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The survivors of this aftermath will have no choice but to Skate or Die.
Posted: Sep 23rd 2009 2:43PM (Unverified) said
Oh wow... That would really change a lot of things...
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Posted: Sep 23rd 2009 3:17PM FNG said
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
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this would be huge for MS to do this. FIFA and NFL only on an MS console or PC. good luck with that Sony
Posted: Sep 23rd 2009 3:39PM Rick James said
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....
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Although stupid Directv has exclusive deals with the football season package....
Posted: Sep 23rd 2009 3:43PM (Unverified) said
I don't think MS would block those games for other consoles...
Timed exclusives... now that's something...
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Timed exclusives... now that's something...
Posted: Sep 23rd 2009 4:17PM Jeff Kibuule said
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.
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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.
Posted: Sep 23rd 2009 4:55PM (Unverified) said
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...
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now for games like mass effect and others... watch out...
but madden would probably always be on every console available...
Posted: Sep 23rd 2009 5:01PM aughscreennames said
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.
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EA is way too big to be able to develop for just one console, they need the income from multiple consoles or theyll collapse.
Posted: Sep 23rd 2009 6:45PM (Unverified) said
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!!!
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This is so evil. I LOVE IT!! GO FOR IT MICROSOFT!!!
Posted: Sep 23rd 2009 2:43PM (Unverified) said
That would be insane if all of EA's properties became Microsoft exclusives.
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Posted: Sep 23rd 2009 2:56PM copa said
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.
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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.
Posted: Sep 23rd 2009 3:00PM Courtney said
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.
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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.
Posted: Sep 23rd 2009 3:10PM Troy Powers said
There go my dreams of ever playing a SSX title developed for the PS3. :(
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Posted: Sep 23rd 2009 4:49PM R V said
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.
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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.
Posted: Sep 23rd 2009 2:56PM XLM said
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.
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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.
Posted: Sep 23rd 2009 4:51PM XLM said
And you're more like a twat.
http://gamercard.xbox.com:80/en-US/knuddelmaus.card
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http://gamercard.xbox.com:80/en-US/knuddelmaus.card
Posted: Sep 23rd 2009 2:44PM Peter Moore said
Uh... That would be a huge coup for Microsoft...
I'm just imagining where that would leave Sony.
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I'm just imagining where that would leave Sony.
Posted: Sep 23rd 2009 2:49PM Peter Moore said
Wait! That'll mean I'll be back at Microsoft! WHOO!
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Posted: Sep 23rd 2009 2:57PM (Unverified) said
Hello! You should be back at Sega making the Dreamcast 2! Get busy!
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Posted: Sep 23rd 2009 3:11PM CaptainProtonX said
Mr. Moore, was this the plan all along since the Dreamcast and Windows CE integration experiment?
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Posted: Sep 23rd 2009 3:38PM RagnarokSword said
D Dogg you seem pretty angry bro smoke some weed
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