Tech Rumor: Microsoft Eyeing EA

Shares of Electronic Arts Inc (ERTS.O) jumped more than 4 percent to $19.36 on Wednesday on unsubstantiated talk that Microsoft Corp (MSFT.O) might be interested in buying the video game publisher, traders said.

"There's talk that Microsoft might be interested in acquiring Electronic Arts. It's unsubstantiated chatter, but it's out there," said Frederic Ruffy, options strategist at WhatsTrading.com in New York.

[GWAVE]

Well, Microsoft has to make a profit in the gaming market SOMEhow.

And as a side note, no one should be celebrating this, not even 360 gamers.

[shocky16]

They'd have more first party studios then Sony and Nintendo.

However I can't see this happening since EA makes a lot of profit on Sony and Nintendo consoles.

[FAT MAN GO BOOM]

This is not good for gamers at all... EA and Activision are the 2 largest 3rd party developers and keep each other pretty honest with competition between each other...

With out the EA check Activision will run kill other 3rd parties...

damn....

[TOO PAWNED]

To be honest this would be huge huge, and would help MS a lot in western market.
IF that happens i can see Sony acquiring also some big publisher to level the field, maybe Square or Take 2.

[Pennywise]

This will never happen.

[wxer]

i really don't think that is going to happened
- first of all
EA is making millions and millions
and cant see why they'll sell them selves if they are already making money
most of the companies that sell them selves are those whom are about to go bankrupt or have been loosing money for a long time

- secondly
EA is making more money right now
why they'll limit them selves to Microsoft's paychecks ?

add to that EA wont be cheap
so Microsoft wont just jump to blow millions on EA

and if you asked me
i think if Microsoft wants to buy a big name
i think it'll be activision
why ?? well one game and that's COD

all and all
if Microsoft is really thinking about buying a big company like EA its going to be a mayhem
I mean Sony and Nintendo well go after other big name companies too leaving nothing called third party except small studious
they'll go for a smaller name

and i don't see Microsoft blowing money on studious
specially after Closing some their own

i mean why the hell you pay so much for something that you had before yet you rejected it ??

i think this is only some stock market rumor

there is TONS of those just to raise a particular stock's prices
r the other way around

[TotalPS3Fanboy]

Like Microsoft can afford EA. That's just ridiculous.

[starvinbull]

If it happens then it's game over for Sony as far as consoles go.

[meepmoopmeep]

so this is the real reason for Peter Moore going there

[ABizzel1]

It would be very very wise, but it ain't gonna happen.

[morganfell]

There is also the question if it would be allowed anyway. A deal like this would have to be approved by the FTC and if it looks too much like a monopoly it will get the axe.

[gaffyh]

MS can't afford to buy EA (and you are quite stupid if you think they can), but if they did buy EA, they will pretty much instantly win the console war forever. EA has too many IPs, too many great games, and just too many studios.

Also if MS tried to buy EA, I'm pretty sure it would be blocked due to competition laws.

[leila01]

I don't see this happening.

On the other hand, it could be a deathblow to Sony and significant enough hit to Nintendo. So maybe it would be worth it for MS from that perspective? Could be one step closer to one console future.

[Maddens Raiders]

what have they got to lose? The answer is quite evident: everything.

Microsoft is as desperate as ever, and will do anything to continue "to try to fool the world". You can't underestimate them though. Hell who knows, they might even rush out an unfinished faulty piece of tech next generation to prove my point.

[gamesR4fun]

but EA owns half the games industry def not good for ps3 only owners who like any of ea's games...

[leeger]

I don't want this to happen, it isn't good for Sony, but it is also not good for EA, and most importantly its not good for gamers in general.

[Hutch2355]

I wouldn't want them to make this deal, it would cost way too much. Now for the nimrods thinking that Micro can't afford it, ummmm yeah they can, with billions, thats right billions in liquid cash in reserves it would not be that hard. Would it strap them a bit, yes, would the financing be crazy, yes, but trust me they could do it. Now would they do it, probably not. Not much of a chance of it getting by competition laws in the U.S. But please do your research before making a statement like they cant afford it. lol

[raztad]

I dont think that could happen even if Ms could afford it. EA is a huge MULTIPLAT publisher/developer. I dont see MS turning into a multiformat publisher/developer, just the contrary, that purchase would be aiming to monopolize EA titles and turning them xbox exclusives. What is gonna happen with the PS3. psp, Wii, DS devel studios? probably they will be axed, and that would be a massive loss of job positions. In the current economic climate I dont see that happening.

[Microsoft Xbox 360]

EA's value simply drops more than half if MS acquires them. More than 75% of their revenue comes from non MS game systems. It simply just doesn't make sense to buy them out.

[sack_boi]

I heard nintendo is going to buy microsoft after this.

:P

[Raf1k1]

I seem remember reading something about EA making more money off PS3 sales than X360 sales.

[StanLee]

Well, if Disney can acquire Marvel for 4 billion dollars it's not impossible but I don't see it happening. EA is too solvent to even consider it.

[Blaze929]

Just because you buy out a company doesnt mean you have to completely change the way things are operated. Look at Eidos, SquareEnix bought then but they are letting them continue how they normally do, they just have a new "boss".

If Microsoft were to buy EA, it isnt like they would shut down all development for any other platforms beside the PC and Xbox 360. Obviously there would be more exclusives but you will likely still see multi-plat games being pumped out for everyone. Microsoft would just be getting paid for every sale.

Peter Moore went to EA Sports to become the president....their plan all along?

[Hutch2355]

Ea's market cap is 6.4 billion, that is the price of all their shares, Micro would only have to come up with 50.1% of those said shares, they would have to pay a higher ammount from the price it actually trades for so I think 5 billiion would cover it, of course not worht it in my opinion but for those that think its not possible financially, sorry it is.

[Persistantthug]

1. We are in a recession...a deep recession. Everyone has to watch their spending, even Microsoft

2. EA is a Multi platform publisher developer. Why would MS buy something expensive only to have to DOWNGRADE it and make it worth LESS?

3. EA is too expensive. Yes, MS COULD do it, would shareholders allow them to deplete massive funds for 1 division...a division that keeps losing money on a deal that's gonna lose them MORE money for quite some time?

4. MS has bigger fish to fry. MS has a new Windows product to push and advertise for in place of their failed Vista. That "fish" is their bread and butter. They certainly can't afford to spend so much money only to have their breaded fish get away.

[HolaTarola]

Ok, first of all, this is never going to happen, but to those who say that Microsoft can't afford to buy EA, think again 'cause Microsoft can. Remember not a while ago when Microsoft wanted to buy Yahoo! offering 50 billion dollars? thats right, 50 BILLION, that is US$50,000,000,000 dlls.

Yes, insane indeed. o_O

[IaMs12]

It wouldnt be good at all but if MS was smart they would continue to allow development of the PS3 games and Wii games and take commission off it. But i dont see this happening.

[Ju]

A rumor is tossed out, stock market reacts within minutes. Someone gets rich before the rumor gets debunked. That's how you're gonna do it. Better then robbing a bank, at least.

[Dark General]

One bit. EA makes a lot of money and the reason they make money is not just because of long running successful IP's but also because they ship all their games across NUMEROUS platforms. I don't think it would advantageous for EA, not to mention how much it would cost MS to acquire them. Just doesn't seem like anything near a probable deal.

[BattleAxe]

I doubt it would happen, but look at it this way, if MS bought EA it would put them on an even playing field with Sony as far as first party development goes.

All you have to do is look at Sony's IP list and look at Microsofts......(these IPs are either owned by MS, EA and Sony or they are first party titles)

Sony - (PSN titles not included)

- WarHawk
- Socom
- MAG
- Resistance
- Infamous
- Killzone
- Ratchet and Clank
- Jak and Daxter
- Sly Cooper
- God of War
- MLB The Show
- NBA The Inside
- Gran Turismo
- Motorstorm
- Hot Shots Golf
- Heavenly Sword
- Sing Star
- Buzz Quiz
- Uncharted
- Heavy Rain
- Little Big Planet
- The Agency
- DC Online Universe
- Eye Pet
- Eyedentify
- The Eye of Judgement
- Modnation Racers
- Syphon Filter
- Twisted Metal
- Folklore
- Lair
- The Last Guardian
- Siren
- Untold Legends
- White Knight Chronicles
- Free Realms
- Home
- Wipeout
- Star Trek Online

Microsoft -

- Banjo Kazooi
- Halo
- Gears of War
- Crackdown
- Forza
- Lips
- Alan Wake
- Blue Dragon
- Fable
- Lost Odyssey
- Perfect Dark Zero
- Project Gotham Racing
- Scene it
- Viva Pinata

Electronic Arts -

- Tiger Woods Golf
- Madden NFL
- NBA Live
- NHL
- NCAA Football
- NCAA BasketBall
- Fight Night
- Fifa Soccer
- Rock Band
- Skate
- Burnout
- Nascar
- Need for Speed
- BattleField
- Medal of Honor
- Mirrors Edge
- Army of Two
- The Sabateur
- Dead Space
- Dante's Inferno
- Black
- Mercenaries
- MMA
- Mass Effect
- The Sims
- Dragon Age
- Star Wars: The old Republic
- Warhammer Online
- Dark Age of Camelot

@cgoodno, thanks for the correction :)

[Christopher]

If it does, you know Microsoft would utilize the full amount of synergy possible to redefine PC and 360 gaming and cut Sony off from their big hitters (BioWare, who are one of the few controllers of quality Western RPGs, anyone?).

Here's some other factors to consider:

- Reducing multiplatform releases would cut profits
- Reducing multiplatform releases would cut jobs
- Reducing multiplatform releases would diminish the competitive market
- Microsoft would have one of the largest game companies with which to use to move away from Blu-ray even further through complete digital distribution
- Microsoft would have the ability to release on multiple platforms, but always ensure that their own platform is the better option through in-house exclusives and better performance that is designed into the software and network.
- Microsoft might put in jeopardy current IPs being developed by but not owned by EA (SW anyone?)

Honestly, if this happens, do we finally recognize that Microsoft as a single company has way too much influence and power in the computer world?

.........

@Battleaxe (above): You missed a ton of EA IPs. Don't forget the EA owns BioWare, Mythic Entertainment, Criterion Games, Pandemic Studios, Visceral Games, and all of the various EA branches. It is publisher to so many more.

Also, Activision/Blizzard own the IP to World of Warcraft, Diablo, and Starcraft. But, with BioWare you can add Mass Effect, Dragon Age, and Star Wars: The Old Republic and add Warhammer Online and Dark Age of Camelot from Mythic's side.

[nycredude]

1) I don't think MS can afford EA.

2) I don't think EA is that Stupid.

[ShabzS]

realistically speaking forbes currently lists EA's market value as 6.5 billion dollars and MS as 232 billion dollars ...

.
so if bill gates really wanted EA he could probably find 6.5 billion in his couch cushions.. but this is likely not going to happen coz ea's too big and its revenue comes from yearly "multi gen" games its really not worth it...

[cmrbe]

The value of EA is where it is because its a multi-platform publisher.

As i said a million times. The right apporach for MS to build their first party is to find new and upcomming talent and then sign a deal with them to make fresh new (real exclusive) IP for them. If succssful they should buy these devs while they are still relative cheap. This is how Sony built their first party.

[ShabzS]

yeah if anything positive to take from this year it should have taught ms the importance of first party studios... coz when third part studios fail to make their dates (ubi with sc) you need first party studios to pick up the share... turn 10 is stepping up and (formerly) ensamble helped early on... but where the hell is rare and lionhead this year (obviosuly they are making their own games)... so clearly they need more studios to help pick up the slack... i get the feeling ms just isnt patient enough for the method you say

[II Necroplasm II]

With EA dominating 20% game publishing market share and Microsoft 35% of hardware sales, the two combined would represent an absolute monolith. Or, at the very least, a chance to have a playable John Madden character for Halo 3: ODST's Firefight mode as DLC.

[HolyOrangeCows]

....just when EA was starting to level out and become a great publisher.
I really hope this doesn't happen :/

[RememberThe357]

It would be much more economical for them to pick up individual development studios and build their own foundation. EA would be a horrible buy for MS, most of what EA makes in profits is from other consoles. You cut those out and this very expensive publisher because almost impossible to pay off. Sh*t, Rare hasn't even payed itself off yet.

[Biggunz]

This will never happen. All this would do is force many game developers to leave EA and join another publisher if M$ tried to make games exclusive.

[pumpkinpunker]

MS could easily afford EA.

EA's market cap is 6.42 billion
MSFT's market cap is 229.18 billion

MSFT's gaming division is a small part of MSFT. MS buying EA would be an expansion of their gaming division and is very possible.

[vhero]

I see a few people have already realized this but EA are just too big for MS to buy. I mean they are worth billions MS would never make that kind of money back selling games on 1 console. They also don't have that kind of money in there games division to buy it with. This is a stupid fanboy rumour and nothing more or maybe EA has done this to push share prices up. They would lose too much doing this people they would have to start selling MS games on other consoles or they would start losing sooo much money so fast it would be unreal. MS are in this for money people just like Nintendo and Sony not just to win a war if you think different your an idiot.

[slayorofgods]

This move would be horrible for gamers. EA is to big of a company and too successful on its own. EA wanting to buy out take two was a horrible idea, Microsoft buying out EA is even worse.

[AAACE5]

But if it is true... It could be deadly!!!

One of the main reasons the Dreamcast died off was because it didn't have Madden football on it, now that EA is bigger and has more well known IP's... it could really hurt the others!

Nintendo and Sony would still have their great games but alot of those other games that people like won't be allowed on other systems.

Then again... it could be a fanboys dream and it would be MS' way of leaving the console market!

All we can do is speculate and have fun with this... But like I said... it's probably BS!

[TooTall19]

Isn't MS still losing money on the 360?

[FACTUAL evidence]

No one should be celebrating b!tchness! If this turns out true this is one helluva b!tch move, i'm sorry...just imagine the games!?!?!?....uugh...never mind....

[BWS1982]

being bad, MS laid off like what, 17% of their workforce in the last year, and now to put salt in the wounds of those families, they'd spend billions to buy out a massive publisher? Logic please?

[ShadowCK]

Microsoft and EA together?

That would be crazy.

[Thugbot187]

If Microsoft acquired EA, they would still release games for other consoles. I believe the difference is they just would pick what was going to go exclusive. My reason for this is it would be stupid to kill off extra funding however it would work in their favor to make some big selling titles timed exclusives or just exclusive all together. This would insure their console success. Remember that also means they will have some influence over UBISoft because they would get the majority shares EA already owns in the company from the attempt at a hostile takeover.

I could see regulators not viewing this favorably however MS does have the smallest game studio. This all depends on what the board members at EA would be getting out of this. Cash payout and to sit on the board at MS Game Division may be more lucrative.

[prunchess]

Sony could also try and purchase as much EA stock as possible and potentially drive EA stock prices through the roof. This would make any attempt by MS to get EA very very expensive.

[DeadlyFire]

If this ever did happen it would shatter all those sports licenses. Madden can't exist on only one console and if so Sony and Nintendo would both be all over them.

EA is too big. I don't see why they would sell when literally they rose up from nothing into a major force in the industry. PS1 era they were just game developer. Look at em now. They just bought Bioware recently as well. I don't see why Microsoft would care. Unless they wanted to ensure Mass Effect 2 to be X360/PC exclusive. Would be alot of money for just one thing though.

I would burn my X360 if Microsoft bought EA.

[Kornholic]

Wouldn't be a smart move from EA to do this since most of their profit comes from Sony's platforms.

[Ahmay]

the chances of MS acquiring EA,
are as slim as Sony acquiring Japan's very own giant, Capcom.

[Meus Renaissance]

If this did happen, they wouldn't cut out the PlayStation, they'd need the revenue especially from a growing platform in terms of userbase.

Either way, this isn't the first time this rumour has come up. Whatever happens I hope it's good for both PS3 owners and 360 owners. Microsoft and Sony may be rivals in the gaming sector, but I don't imagine Microsoft wanting to throw money around to this degree in an effort to kill the PS3. The people running that company are not fanboys, they'll do what they think is the best way to financially profit.

I also understand that the contracts with FIFA and the NFL is that EA must release these franchises on all available platforms. Why would Microsoft be interested in an EA without their biggest franchises?

[Captain Tuttle]

And I couldn't see the big franchises going exclusive (Madden etc.). Why would MS bother then? Revenue is revenue. It's not like Sony or Nintendo owners money is worth less than 360 owners money. I would imagine that some of the smaller franchises (Dead Space, Mirrors Edge) might go exclusively to the 360 though.

[ArmrdChaos]

If MS were to make it happen I don't see them killing off any major titles for the other systems. Although I could see them putting out a lot of exclusive DLC for said games if they were able to pull it off.

[Alcon Caper]

Peter Moore's presence at EA Sports definitely has something to do with it. Always nice to have someone on the inside.

If they are to heavily promote Natal, they'll need a large first party developer that is well known.

Maybe this is it...

...Mirror's Edge on Natal...?

[Biggunz]

M$ to spend 4 billion dollars to promote natal? I don't think so. It doesn't take an Einstein to see this story is BS.

[cronaldo7]

Checkmate.

[54percent]

yeah... the history has always show that monopoly is always good for any industry. Oh wait... no it don't.

[AssassinHD]

They had their eye on Yahoo also. We all know how well that worked out.

Edit: To those who will disagree: It is a verifiable fact that Microsoft attempted, and failed, to acquire Yahoo. I will be happy to eat crow if it ever happens, but I do not presently believe that there is a snowball's chance in hell of Microsoft acquiring EA. Even if you throw the financial aspect out the window, you still have to consider the possible antitrust issues.

[sparced]

Microsoft owning the gaming industry is just like John Cena being WWE Champion.

It only pleases the same people.

[Hutch2355]

And their ceo lost his job because of it, Msoft offered way too much for the stock, he lead a revolt to stop it, then the shares dumped big time and he lost his job for losing stockholders billions of dollars, so it wasn't microsofts fault. Jerry Chang I think his name was.

[Optical_Matrix]

Why would EA do this when they make more money off of Sony than they do from MS. Plus it would cut a stupid amount of their consumer base. Think about all the Nintendo and Sony system owners who would feel alienated with a lack of EA games.
I don't even think 360 owners should see this as good news tbh.

[Sitdown]

you do realize that this stuff would not exactly be EA's problem right? All the stuff you mentioned is reasons why Microsoft should/would not make this move...not the other way around.

[man0fsteel]

simma down now Microsoft...

no seriously, that would be messed up, it will further add to my hatred for MS

[KionicWarlord222]

Doubt this will happen . Ea has support on a lot of games for nintendo and sony .

Not plausible right now .

[rCrysis]

once EA is assimilated....Activision will rule teh worldz!!

T__T

really though. Activision will destroy 3rd parties without EA as a 3rd party competitor

[user858621]

hahaha yh ryt

[ReviewsArePolitics]

But if this happens it would be the end of the game industry. Hell, it wouldn't even be good for Microsoft or EA

[Poopface the 2nd]

I dont think it will happen, but if it did Id assume they would still make games for ps3 and the wii. that would be weird.

Id assume that EA would cost alot of money to buy, maybe even to much for microsoft. who knows, but I dont see this happening.