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Editorial: Valve to Buy EA

Gameplayer writer James Cottee theorizes in this article that Valve are the best placed game publisher to capitalize on the next decade of gaming, suggesting they may end up being in a position to buy industry giant EA.

"To put it another way, last year EA lost money, but Valve made money – lots of money. The finances of this secretive company aren't freely available on the web, but proof of its influence is. Yes, games like Team Fortress 2 and Portal have earned tremendous goodwill, and yes, the Source engine is one of the finest middleware options available. But the money train stops at a station called 'Steam.'"

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gameplayer.com.au
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SlappingOysters3269d ago

Whatever happened to the EA Downloader software. Does that still exist? I remember using it ages ago to buy the Battlefield 2 expansion packs but haven't heard anything about it since - wasn't it an attempt at a Steam like program?

mighty_douche3269d ago

Yeah its still around, i bought Crysis through it. But honestly, its not even close to steam, its simply downloads only.

mighty_douche3269d ago

Personally, i hope it doesnt come off, Gabe hates consoles, admittidly, EA have made some pretty poor console games lately but you have to agree they're starting to improve. If Gabe gets his hands on them i expect a step backwards!

ravinash3269d ago

I was thinking the exact same thing.
The bosses at EA despite the crap effort they have done with PS3 over the last year know now that it is up and coming and are trying to pull finger to correct things.
If Gabe gets his chubby fingers on things god knows what will happen.
hopefully despite his hatred of consoles, he'll have to realize the pattern in the industry is that more and more people are moving to consoles for their games and that will force him to take consoles seriously. He is a fat B*st*ed after all.

anh_duong3269d ago (Edited 3269d ago )

this guy is on drugs... it's like saying adobe buying microsoft i.e. it won't happen - does he know how much bigger EA is?? EA totally dwafs Valve.

as for the comment:

"Valve are the best placed game publisher to capitalize on the next decade of gaming"

funny since, as far as i am aware, valve don't even know how to code for the ps3 and haven't released a single wii, psp, ds game. next decade of gaming my ar$e

stupid gaming journalist strikes again.

SlappingOysters3269d ago (Edited 3269d ago )

Stupid poster too

The article is suggesting that it will be big years down the track, not now. It is also not talking about them making PS3 games. It even points out they've started buying developers.

What it is suggesting is that when downloading of digital media takes over from packaged products in around five or so years Steam will suddenly go huge as it is already building to that moment. Mayeb even big enough to buy a company like EA.

Or so I understand it.

anh_duong3269d ago (Edited 3269d ago )

yes it says Valve will be big because it owns steam.. big deal.. console gaming is where it is at and digital distribution is active in wii, xbox360 and ps3 - a place where valve, a predominantly pc company, has little or no presence. it is valve that is behind the game.

you are on cloud cuckoo land if you think valve will buy EA. ask any industry observer apart from the muppet who wrote this post and you will see what i mean.

get a gripe on reality dude, EA is massive, owns digital distribution networks, just swallowed Bioware like it was a mcnugget and you really think valve will take over EA - if anything EA could swallow valve in a blink of an eye.

SlappingOysters3269d ago

I don't really think Valve will buy EA, I just thought you misconstrued the point of the article, which was to identify the growing power and importance of Steam.

Don't underestimate the power of Steam - EA can't buy it. They would if they could to replace thier EA Downloader service.

For me personally, I still find Steam too damn slow and annoying. It is always downloading stuff when I just want to play!

ulath6663269d ago

Well...
First of all you got the meaning of the article all wrong. Valve is one of the few companies that earn sick amounts of money and have an incredible "value" to their name. EA on the other hand looses money and can make gamers spit at the mention of their name.

"ps3 and haven't released a single wii, psp, ds game."
I cant even begin to comment on how stupid this is. Why on Earth would valve develop a console game when they excell att creating wonderful PC shooters? They are the next decades gaming company because of steam and because of the extremly high quality of games the release, not because they poopout 4 multiplatformers a year that noone wll remember in a year or two. Stick to what youre good at, multiplatform often spells disaster or mediocraty since they all dont work the same way.

And this is seen from a PC perspective (still the largest retail market in the world, and thats without counting online sales from for example steam). Sure in NA the retail sales arent so hot but in europe it usually stands for about 50% of all RETAIL game sales (thats more than all consoles combined for those of you with a mathproblem :P)

Now onto steam.
Steam is bigger than any other download service, including xbox live, its free, and no other download service comes even close to the openness(is that a word?) steam has. I can log in from ANY computer and with my steam account i get access to all my games. Steam is the one downloadservce that got it right, fast speeds, easy to use (no drm to speak of) and you can download any game how many times you like(unlike EA downloader which is a piece of crap).
EA and most other publishers is YEARS behind. They need to catch up fast, otherwise Steam will own all in a few years, sure Valve probably wont own EA but i can see EA more or less feeling forced to release games on steam.

anh_duong3269d ago (Edited 3269d ago )

"Valve are the best placed game publisher to capitalize on the next decade of gaming"

can not happen if you have no presence in ps3, wii, psp and ds.

console sales are killing pc sales ( i haven't got time to go into numbers but i know i am right ). and if you have almost no presence in the console market then the above phrase is stupid.

steam is not some holy grail since it isn't a captive market like wii network, psn or xbox live. anyone can enter the digital distribution network. infact microsoft will enter it soon as well as there being a few other steam competitors out there. you are deluded if you think valve will buy EA. as someone here said: it will either be microsoft or EA that will probably end up buying valve.

ulath6663269d ago

Man, youve missed the point again.

A, Consoles arent "killing" the pc market, as i said, outside NA the PC sales are bigger than any console. Please come back a few months after the release of SC 2 and lets compare South Korea sales to console games worldwide...

B, The articles point is that valve have the right forumula for the next decade, digital distribution thats way better than any other publisher, platforms doesnt really play into it(especially since there arent any real competetion on consoles).

C, Retail sales will decline(atleast for PC games, the consoles will stay with retail untill they got decent harddrives), digital distribution will take over, ive bought about twice as many games trough download services as i did from retailers last year. Thats the thing with PC digital distribution, its cheap (for the developers/publishers), its always open, you can use any major credit/debit card(no MS points or similar stuff). Its easy and VERY accesible. With broadband speeds pushing 1 gbit speeds and the release of decent VDSL2 products, alot of people will be able to download new games in a fraction of the time it takes to run to the closest retailer. And again: i dont see Valve buying EA, but i can se EA using steam unless they start thinking forward themsels.
And no, Valve is currently one of the unbuyable companies, perhaps in 10-20 years when the original people is gone and the market is different, but in a forseeable future its definitly not happening.
Valve has been offered enourmous amounts of cash but why on earth would they sell? Cant think of one good reason.

Legion3269d ago (Edited 3269d ago )

How do I know this is bullcrap journalism? Because I don't use VALVE!!! Why? Because PC gaming is NOT the future. VALVE is PC gaming and does nothing for consoles. EA is the console king currently and valve has no leverage now nor in the future to have the capabilites to put a claim on EA's purchase.

This article is crazy. PC gaming has petered off to nothing in the gaming world. No one really cares that more about it. Is it always going to be there? YES! Will it ever take back the control it used to have in gaming compared to the console games momentum now? NO WAY!!! MS got into the console field for a reason. They new that was where the market was going. And they are correct... and this article is bogus crystal ball (cracked crystal ball!) predictions.

anh_duong3269d ago (Edited 3269d ago )

In the US console software sales dwarfed PC game sales, raking in 153.9 million units. Handheld software brought in a record 77.5 million. PC sales were paltry 36.4 million.

Computer retail game sales in the United States totaled $910.7(!) million, or 36.4 million units, a DECREASE over last year's results, when PC games sold in a retail setting saw revenue of $970 million. PC games sales are DECREASING - yes DECREASING in a year when the industry had an record breaking year!

European PC sales numbers have to be pretty extraordinary to match this performance.

What is more, console sales are slowly wiping the board on PC sales. i.e. it is a trend that is more and more in favour of consoles. Why? Maybe it is because PC have become too complicated - maybe, who knows.

Please try not to say Steam is some super dooper system that will make a difference in an industry that is growing more and more in favour of consoles. Don't keep saying that I am wrong because I know I am right when I say the journalist who wrote this article is smoking some serious sh1t.

ulath6663269d ago

As i said. NPD figures arent correct, not by a long shot, since they dont count digital sales and as ive said a couple of times now, the american amrket has never been the big PC market.

Oh and using YOUR figures add all console sales up and divide them with the numbers of consoles currently "active" and *GASP* WHAT!?!?! Pc gaming is as big as any other console? AMAGAD!
Bunching all consoles together is in no way a fair comparison...
And while the NPD numbers prove nothing, sure there may have been a decrease in PC sales, but remember we got the PS3 last year(here in europe atleast), and the xbox i still quite new. The next year will probably be different.
And yes the Eu sales is pretty extraordinary. Here in sweden the top 20 games sold each month consists of atleast 10 PC games(the others divided between DS, 360, psp, ps3, wii and ps2). During 2006 PC games stood for OVER 50% of all games sold. It looks exactly the same in alot of european countries. In russia its even more extreme.
And thats only retail. Add digital distribution and you got a pretty big lead.

As a side note, Starcraft (yes i know its old but still) has sold about 5 million units. In South korea alone. MMOs you havent heard of sells more than halo 3 did worldwide in asia.

And you still havent got the god damn point.
Again:
The point is:
Valve, have trough steam a perfect tool to become one of the big publishers during the next decade.
Thats it. PC gaming is big enough, and since they keep getting games like QW and COD4 i think it will be pretty big in a few years. They have close to NO distribution costs, other companies PAY to use their system, it provides an amazing amount of information to said companies, it cuts out several middle hands, which means the developers get more money to make new games, and its a system most people like.

anh_duong3269d ago (Edited 3269d ago )

aaargh .. you are missing my point, valve doesn't have a significant presence in ds, wii, ps3, psp, ps2 and minor presence in xbox360 - isn't this the whole console market valve are practically missing out on?? EA has a significant presence in all those markets (+pc market). all these add up to alot of sales.. hence there is no way valve can challenge EA let alone take them over... EA market cap is at least ten times bigger than valve.. why do you keep arguing with me when I tell you that the guy who wrote this article is crazy???

i am out..

+ Show (7) more repliesLast reply 3269d ago
GIJeff3269d ago

i think im the only one who:

1) cant stand team fortress(why does almost everyone have a shotgun?)
2) thinks portal is a hack and not a complete game.
3) thinks steam is a steaming piece of excrement.
4) thinks COD4 kills CSS and anything valve has to offer(k, i think a lot of you may agree on this one)

mistertwoturbo3269d ago (Edited 3269d ago )

Wow... I competely agree with every single point.

Bubbles!

Bnet3433269d ago

Team Fortress 2 is one of the best games ever made, you aint no jackcrap! :P

bootsielon3269d ago

For a hefty price. Hell, maybe EA will be the only one that will be able to pay that.

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