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Microsoft Acquiring EA Makes Xbox A Dangerous Competitor, But will it Happen?

Derrick Smith with Game Insider states - The rumored possibility that EA or Valve could become part of the Xbox eco-system has certainly peaked our interest, leading us to believe that a reality where EA games are all exclusive to the Xbox platform could mean the end of Sony’s runaway hardware advantage in the next-generation of console wars…possibly.

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Septic233d ago

Really doubt it. The cost of the acquisition would be absolutely enormous.

233d ago Replies(5)
Neonridr232d ago

34 billion thereabouts. Even if it did happen, MS wouldn't be dumb. They would still have the games release on PS4/Switch. It's money in their pockets. Acquiring Mojang didn't stop them from supporting Minecraft on other platforms.

Prince_TFK231d ago

Yep, it is still money in their pockets. Plus, they could use all of EA’s games for their game pass service as well.

DillyDilly231d ago

Its money in their pocket for the standard games but all DLC etc would be Microsoft exclusive lol

yomfweeee231d ago

What would be the purpose of them purchasing EA if they still released on all platforms? Doesn't make sense.

Markusb33231d ago

Of course if it was purchased it would be for the ea infastructure and services. They could still distribute and add to game pass massively. People who think they buy EA to make the 3rd party exclusives have no idea how business works. Look at office,.it's on all major competition platforms now.

OB1Biker231d ago

Like for Minecraft until they innocently decide to push for crossplay and make it necessary to have an xbl account for the update.

rainslacker231d ago (Edited 231d ago )

I don't see why ms would buy ea for billions just to promote game pass. They don't need ea for infrastructure, because they have one of their own which is actually better...at least technically.

ImGumbyDammit231d ago (Edited 231d ago )

@Markusb33 services? hardly. those are a mess that using Azure would definitely improve. As for Office different business model. That drives service needs. Microsoft is doing that for mobile because they don't have a major player in the game and don't want people going elsewhere. Most of what you are talking about are apps not the actual full programs. MacOs is supported with a some what equivalent Office package but Linux and Android are not. How does that translate for a game, it doesn't. With your logic they should be bringing >> every game << to MacOS as well. MacOS is over 100 million desktops. But, neither EA or Microsoft do that now.

Now I am not saying any purchase of EA would mean in any way they would stop making the sports and several games (like Battlefront, Battlefield, Sims). No they would certainly see the advantage of continuing making those multi-plat. They could even make them have cross-platform game play for Windows and Xbox and even Switch and becuse Sony doesn't think it is best for the children leave PS out this capability. Make them PlayAnywhere games and available through their store only or individually on disc. And even allow those games to be part of a 0 day package. Maybe not the base GP subscription (from a business perspective that would be insane). Perhaps an additional Premium package to cover so many games. However, they could still make Anthem their new ecosystem exclusive IP. Those games with very little multi-platform history could be brought back to Xbox/Windows; bring Titanfall and Dead Space over and so on exclusively to their ecosystem. They can do both make certain games multi-plat and others not. It is not just make one move or the other.

PUBG231d ago (Edited 231d ago )

The licensed sports games and Star Wars games would certainly be that way, but I'm sure that they would pick and choose from the rest of the catalogue. Also, Microsoft may have a stipulation that allows the games to go onto PlayStation or Nintendo consoles, with the catch that you would need to sign into an Xbox Live account in order to be able to play them. EA was trying to do this on Steam, but Valve said no, and that's why there have been no EA games released on Steam ever since Mass Effect 3 and Battlefield 3.

indyman7777231d ago

Yomfweeeeee So does Minecraft make sense? They purchased that for over a billion! Does Halo make sense? Minecraft is on everything....mobil..SWITCH... PS4...PC..and xbox one. So what you say does not correspond to reality. Even though I would normally agree with your logic.

Retroman230d ago (Edited 230d ago )

@ Neonridr

IF .....and i mean "IF" that happens i would wish MS re-hire Blackbox studio revamp NFS
Get rid of Ghost Games loot boxes,open world racing ,alldrive,autolog crap.
Bring back close circuit racing .

Zerobalance230d ago

Remember the PS4 version of Minecraft will not be updated to the newer version as Sony will not allow cross play. PS4 version is gimped.

+ Show (8) more repliesLast reply 230d ago
343_Guilty_Spark231d ago

Microsoft has over 100 billion in offshore tax havens they could expatriate. 36 billion ain’t that much considering they paid 18 billion for Linkendin.

danoman64231d ago

You actually think EA will only take 36 billion? You are funny. MS will have to dish out well over 50 billion for EA, seriously, you think MS is going to spend over half of their money on EA alone? Plus majority of EA's income comes from licensed games, FYI, games EA doesn't own, you know games such as FIFA, Madden, Star Wars and UFC. If am not mistaken there are clauses in these licensed games that make them multi-platform, so MS acquiring EA will have to lead to renegotiations for each of these licensed, each worth possibility 10 plus billion for the 10 or more years the game will be licensed out to MS. So just in case you can't put 2 and 2 together, MS will more than likely have to pay more than 36 billion for EA and another 10 plus billion each on the games EA doesn't own

343_Guilty_Spark231d ago (Edited 231d ago )

And if it’s $50 billion so what?

Show us these clauses danoman64, where are they?

neutralgamer1992231d ago (Edited 231d ago )

343

it will cost MS way more than 36 million. https://www.wired.com/2008/...

MS will have to pay minimum 55-60 billion and the biggest issue that you and so many other xbox fans don't realize EA will want MS stock not cash. When big companies are trying to buy other big companies the selling party wants stocks in the other company something MS wants no part of(same goes for other companies besides ms none of them want to give equity to the other company)

can MS do it yes they are big enough to afford almost any company will they i am not sure. I think they will look at EA very hard and may make an offer

Valve isn't for sale Gabe has said that

PUBG parent company was offered billions yet they rejected a Chinese Company's bid to buy them so i don't see them selling either

Fifa
NFL
Star wars
etc,

these licenses are what are known as 3rd party exclusive contracts, meaning no other 3rd party can make that game for any consoles. Now 1st party can just like sony did with MLB even though 2k had exclusive 3rd party rights for MLB games

EA can continue to make those games and use those licenses under 2 conditions:

1. develop and release those games on all platforms(MS benefits from extra sales yet to have those games be exclusive could be a huge benefit)

2. use the licenses under new contracts exclusive for xbox brand consoles and other 3rd party publishers can scoop up the license to use industry wide. For example in this case 2k could start making nfl games

star wars games from EA have exclusive marketing deals with sony/ps so it wouldn't be a nice look for a ms published game to have exclusive advertisement rights and bundles for playstation branded consoles

so it's not as simple as people think

MS could do like they did with minecraft and keep releasing EA games for all platforms

how us these clauses danoman64, where are they? i know you asked him but i think i explained well. 3rd aprty exclusive deals are different from 1st party exclusive deals. Not saying MS wouldn't do it they could renegotiate with Fifa, NFL and disney to make those games exclusives but than how many extra billions are we talking about once again

and it won't stop sony from making those games under their first party banner either

it will be very interesting i do think MS will buy another publisher let's see which one they do

StormSnooper231d ago

It’s a match made in heaven

rainslacker231d ago

Ms would have to pay at the least half the worth of ea to gain controlling interest, and as soon as they start making moves, the value of their stock would jump pretty high. Then after the purchase, the value of the stock would go back to normal, or maybe even down if there's is investor doubt about the future, so before ms can even do anything with ea, they would have likely lost 10-25% of the value of ea,, essentially meaning they spent all this money, and also lost money because the assets aren't as valuable. Meaning ms shows a greater loss, meaning their next report to investors causes their overall stock to go down some, meaning they lost even more money.

All for ea, which they don't even need to purchase to achieve anything. If they just invested a quarter of what it'd cost to buy ea into new games and services , they could blow the competition out of the water.

343_Guilty_Spark231d ago

Nuetralgamer1992

An article from 10 years ago.

Congratulations

PUBG231d ago

Hey Danoman64, is this Michael Pachter's N4G account?

bleedsoe9mm230d ago

If ms does pull the trigger on this deal you can thank Trump

derek230d ago

Microsoft is not the Xbox division alone. Why can't people understand this. Those type of dollars invested into a relatively small part of the company would have to show a good ROI to justify that amount of cash. 50 billion is not a small amount of money.

+ Show (6) more repliesLast reply 230d ago
gangsta_red231d ago

I don't see it happening either but the return on investment may out weigh the cost of acquisition.

EA has a few IPs that make money hand over fist especially Madden and some of their games on mobile.

Acquiring EA, MS could also get EA Access and either keep the service separate or combine it with Game Pass and really make it desirable.

It would definitely be huge if they did.

zerocarnage231d ago (Edited 231d ago )

I think they EA are valued around the 28 billion Mark, so yeah it would be a gigantic acquisition and could cost Microsoft a purchase of up to 40 billion, could they do it of course they could they have that money.

I believe that is what Microsoft have wanted a major company and why they were closing certain drains down from other studios/games, to stop floods of money being washed away when they can put all there green in to acquiring a big guy like EA, only time will tell..

The internet seems to blowing up with rumours though..

KickSpinFilter231d ago

There is not enough money in the world to take EA out of the Multi-Plat business for this generation, next generation and on and on. Just no way. So much more money can be made offering games on XB, PlayStation, Nintendo, IOS and PC generation after generation.

rainslacker231d ago

And the worth of ea would plummet if ms went exclusive with it. It would be a terrible investment unless they keep it multi-plat and intended to capitalize on why itits worth so much to begin with

PUBG231d ago (Edited 231d ago )

This is the time for large acquisitions. When you look at the massive acquisitions that
Google https://en.wikipedia.org/wi...
Amazon https://en.wikipedia.org/wi...
Facebook https://en.wikipedia.org/wi...
and Apple https://en.wikipedia.org/wi...
have been making, I'm not sure what seems so hard about this. Microsoft is one of the big boys, and people seem to have forgotten that.

If Microsoft makes a move, this will have serious long term effects for their business. The question is, which merger would be the best investment for them?

Electronic Arts

Obviously, EA has some of the best game franchises in the industry, within their portfolio, so in that sense, it's an instant win. Battlefield, Mass Effect, Dragon Age, Burnout series, Need 4 Speed, Mirror's Edge, Dead Space, Titanfall, Plants vs Zombies, Dante's Inferno, Army of Two and also all of their licensed franchises like Madden, Star Wars, FIFA, NHL, PGA and UFC.

I have to disagree with the gentleman in the video when it comes to what would happen next generation if Xbox had all of these games exclusive to their ecosystem. If Microsoft buys EA, it's going to be a blood bath next generation, even without the yearly big licensed game franchises. You can bet that Sony would try to counter with exclusivity deals for Call of Duty and Destiny, in order to try to level the playing field. I could even see Sony try to buy Sega as a countermeasure.

EA also has some very large and very valuable real estate holdings, such as Redwood City in California, which everyone knows about, and EA Vancouver in Burnaby B.C., Canada, as an example, which is a massive campus, and sits on some of the most valuable land in North America..

Microsoft would also inherit Origin, which in my opinion is a far better online market place, and has a much better and more customizable personal library for digital games than the Xbox App on PC. I'm willing to bet that Microsoft would migrate all Xbox Live services onto EA Origin, because when you look at the Xbox App for PC, they haven't done anything with the Windows Store, which is still a mess, and there is absolutely no customization whatsoever on the Xbox App. I think Origin, as a marketplace, and as a place to build a library of games, is far better than the Xbox App.

Valve

With the largest global reach, Steam would be an instant money maker for Microsoft. Although, Steam has become a cluttered mess, and if Microsoft buys EA, they could have all of the major PC games for sale on Origin very quickly, but with a much better curated store page, and much higher standards for games that release on their service.

Left 4 Dead, DOTA, Half Life, Counter Strike and Portal would all be huge for Microsoft's first party list of games, especially when you combine them with Microsoft has right now, it begins to stack up to Sony's first party line-up extremely well. I think this would get Microsoft to where they need to be to compete with Sony's first party lineup, but i don't think it necessarily surpasses Sony by leaps and bounds, at least not like an EA acquisition would.

Vectrexer231d ago

It would be very expressive but Microsoft could easily do it and to have all of EA Games become Microsoft exclusive would be awesome for Microsoft!

Smokingunz231d ago

Microsoft has the money u moron smh this is Sony in the red we are talking about here. Me personally I wouldn't care if Microsoft acquired them because I don't play or buy EA's game so it wouldn't matter to me. As far as Valve, well, what game has they made in the last couple of years?

Lastly I don't think that'll hurt Sony one bit, and as much as EA loves money I think they rather stay 3rd party and itll be more money for them.

+ Show (7) more repliesLast reply 230d ago
Godmars290233d ago (Edited 233d ago )

Where did this rumor originally come from? Some insider or a hardcore fan?

Seeing 2-3 submissions a day is both annoying and pointless.

ShottyatLaw233d ago

Supposedly Polygon's "source close to MS."

If it was, the leak was intentional.

Sitdown231d ago

The leak only makes sense if it was from EA.

ShottyatLaw231d ago (Edited 231d ago )

It could have come from either side in a normal setting, but, yeah, an EA leak would make more sense if negotiations were serious. Not to say the buyer wouldn't have some possible reasons to leak it. In this story, it would just seem odd that an EA source would also leak the Valve and PUBg interest.

If it's MS, they might be trying to push the deal through or get excitement brewing. But I don't see them in some kind of bidding war with someone else looking at EA.

I think it's just for publicity, and it probably came from MS. I personally think it was an intentional leak to show MS's support of Xbox.

Aceman18231d ago

I really wouldn't lose any sleep over this is it happened I dont care for any of their sports games, NFS is pretty much a dead franchise since they haven't made a good version in awhile. The one franchise (ME) I actually cared they killed with the last game even i enjoyed it.

Anthem even though it looks good it wouldn't kill me if I didn't get to play it.

Aceman18231d ago

@richie

Actually no I honestly just don't care, I'm pretty much set gaming wise on Pro and Switch. Grabbing EA isnt going to make suddenly jump on M$ bandwagon

Teflon02231d ago

That's what I don't get. Funny thing is I said a few days ago is MS can only be successful buying Valve since they run the PC scene and fusing Steam with the MS Store is the only hope of taking it over. Then all of a sudden MS might buy EA or Valve. I don't think they're even remotely buying EA, MS has the money but that's not happening. Now them buying Valve is definitely a possibility. They'll make the money back with steam easily. Though I don't know about valve being okay with that and they're not in a whole so they don't have reason to sell to a bigger corp like say ATLUS did

subtenko231d ago

Eveyrone has a PC, so this would be nothing new and just make xbox more irrelevant... I PC game and PlayStation game...

Teflon02231d ago

No it would make Xbox more relevant. Change it to Windows Gaming or something, See if they can buy Valve, if they can Unify it with the MS Store and boom, everyone has a PC so they just need to produce games. They can still make consoles for whoever wants it but they'll have a bigger range of titles to play on it. Basically making consoles will be like a Steambox situation but way better. It would be a win win for everyone. Xbox is basically turning into windows anyways

yomfweeee231d ago (Edited 231d ago )

Journalistic integrity has gone out the window. Straight up lies used to generate hits and conversations hidden behind anonymous sources.

FGHFGHFGH231d ago

I think we are seeing these bs articles is because other than the same games we heard about for years (sea of thieves, crackdown, state of decay) xbox has nothing besides a few forza games and a halo game. Now that the xbox x has come out they have nothing else talk about. (the last year has been about the xbox x)

george957231d ago

EA aint that stupid to get bossed around by MS... Since going with MS and ditching PS and Nintendo will be a huge loss to them ... Also MS should focus more on developing their Xbox brand and make new IPs since they have the talents... I find it stupid that MS cant provide exclusive titles but will throw money and buy off third party devs games..

Lennoxb63231d ago

MS won't be bossing around EA since they pretty much have the same vision. And Xbox won't make EA's games exclusive as that would be taking money out of their own pockets.

Newmanator231d ago

Yes #overit let's get some real news like a Crash Team Racing remake announcement or something!

Rude-ro231d ago

Probably Microsoft.
A way to see the reaction and soften the blow once they start monopolizing the market.
This is the third time since the launch of the 360 that this “rumor” went around on here.
And most vocal Xbox “fans” on here are paid to do what they do and they like stirring the pot because any noise about your product is good noise. Especially when you are partnered with most media sites.

Godmars290231d ago

Can we please stop any "paid fan" BS. Bad enough dealing with a-holes who only make "you're bias" their sole attempt at arguing even as MS or Sony confirm my my point.

MatrixxGT231d ago

How do i sign up to be a paid fan? How to i get that job. I dont care if its sony or MS, i just want to get paid for typing comments!

fenome231d ago

I was wondering the same thing, I keep seeing it pop up every other article like they actually said they were in talks or something..

subtenko231d ago

I got one comin up fam:

How Xbox acquiring of NIntendo could be disastrous for sony! (/s) xD

+ Show (6) more repliesLast reply 231d ago
ElementX233d ago

MS would be more likely to purchase some of their unused ips

ILostMyMind231d ago

I would have no problem with that. In fact, I think that all companies that have IPs and do not use them should seal them for those who want to use them. (a lot of 'them')

BassMan125231d ago

Thar would make a lot more sense. I mean, MS could ressurect popular IPs like Army of Two, Dead Space, Dante's Inferno, Syndicate.

AspiringProGenji231d ago

It is not that symple to just buy IPs. IPs are best kept with their creators. IPs given to other devs hasn’t always yielded good results

zerocarnage231d ago (Edited 231d ago )

I think personally dig into segas vault and buy some of there games they sent using no more or never released and brought into the future, fans asked Sega time after time to release new games.

I'd love a new streets if rage..