Microsoft to Buy EA, Have A (HUGE)) First Party?

GG, Sony.

Scuttlebutt is going around Wall Street regarding a possible takeover of Electronic Arts at the hands of Microsoft. Talk of the potential buy has been dismissed as "unsubstantiated chatter" by Reuters, but rumors among traders have already served to drive up the stock of both companies. EA stock is up 5.24% to $19.36, while MS increased by 0.9% to $26. Some traders, at least, are banking on the possibility.
Whether purely the product of imagination or a legitimate piece of inside info, the rumor is plausible enough. The last year has seen a steady fall in videogame sales, the largest sales drop in nine years, leaving EA in a potentially weakened state. Such acquisitions have happened increasingly often, as in the case of "Activision Blizzard", and Zenimax/ID, and even EA's own attempts to acquire Take-Two.
Just how such a buy would change the face of the industry is difficult to comprehend. 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.

I don't think I would like this because essentially it would mean Microsoft=Western Developers system and good luck getting a good Japanese system otherwise. I hope this doesn't pan out.

Scary thought. Sony probably wouldn't ever recover from something like that, and I could well see the PlayStation line going down like Sega did. Nintendo would take a massive hit across the bows as well, although that particular part may be a good thing.

These are indeed dark tidings. If this goes through, then it'll probably be the death knell for the Playstation, seeing as EA controls so many developers. Like Krabby said, Nintendo would also take a massive blow, and though they could still stay in the game it would hurt them greatly.

I'm hoping this doesn't go through. Microsoft would almost have a monopoly on the console market.

Microsoft deosn't need a gaming monopoly. EA is way to big to be a first party for anyone.

If this would happen, we could every well end up waving goodbye to cross-platform gaming and just about all Japanese prescence in NA or Europe, excluding a few Nintendo titles.

In other words, the industry would be destroyed.

Of course, organizations like the NHL, NFL, NCAA and such wouldn't be happy seeing their titles on a single platform, and that's unquestionably the meat and potatoes of EA's lineup. So, most likely, it'd be more trouble than it'd be worth for EA to do this. Plus, I'm sure they want their Rock Bands remaining cross-platform, not to mention their efforts on Wii.

EA wouldn't keep all their sports licenses if they got bought by Microsoft.

You guys are all overreacting.

Originally Posted by Hazzle

EA wouldn't keep all their sports licenses if they got bought by Microsoft.

You guys are all overreacting.

It still would be a bad move for EA to go First Party, even if the Sports Licenses went to other companies.

Originally Posted by Silver

I'm hoping this doesn't go through. Microsoft would almost have a monopoly on the console market.

Microsoft is already a monopoly, Those selfish bastards sell games and computers and now they want to buy one of the biggest game distributing parties? If this happens Theodore Roosevelt will turn in his grave

Originally Posted by Protagonist

Those selfish bastards sell games and computers

Yeah, because that's so selfish, despite Sony doing the same thing. Microsoft doesn't sell computers, by the way; they sell software, their most popular being Windows.

I agree Microsoft's market share is larger than it should be, and that Microsoft buying EA could shake up the video game industry harder than anytime in recent memory, but "selling games and computers" does not make them selfish. They are the same as every other business; they want your money.

This is a hard one for me. I don't know the ramifications of this in the gaming world (as some people are saying). But I do know that EA bought out Westwood and the CnC games have never been the same. So I'd love to see that ****ing company go down in flames. But that's a personal thing. It will be interesting to see what happens.

If this would happen, we could every well end up waving goodbye to cross-platform gaming and just about all Japanese prescence in NA or Europe, excluding a few Nintendo titles.

I can see all of the sports stuff going but why this?

Oh dear. I've got my finger on the panic button.

I think this deal should go through. Anything to win man.

^ Gamers lose. Why would you want that? All this does is eliminate competition, which never improves the quality of a product.

Originally posted by Ty
I can see all of the sports stuff going but why this?

As it is, Japanese gaming is dwindling in Western markets. If the 360, a primarily Western system, would gain entire control of EA, the biggest Western developer, PS3 and Wii lose tremendous support from those markets. To never again see so many popular titles that the Western audience loves on PS3 or Wii would do big damage to what influence they have here. Not to mention 360 sales would go through the roof while less and less units of PS3s and Wii would be sold.

Nintendo could probably survive for a little while based on their first party efforts, but Sony doesn't have the big names to do the same. If their console has weak penetration in NA and Europe, what incentive is there for Japanese developers to have their titles localized for such small markets? It's like why a lot of 360 exclusives never even reach Japan.

Nothing good would come of this. Sony would take a huge hit and we could potentially see a Gamecube-esque Playstation era. I'd rather see an HD system with genre variety, like what PS3 offers now.

Sounds awesome.

Originally Posted by Sailboat

Sounds awesome.

I can't tell if you're being sarcastic or not.

I definitely agree that having these guys become one big first party wouldn't be good, as it eliminates competition. Not to mention I prefer Sony and Nintendo and I don't like Microsoft, and seeing Microsoft dominate while my favorite companies are really hurt and will have a tougher time selling games isn't something I would enjoy.

I don't see this happening. Haven't EA made quite a bit of money from the PS3 and Wii? Especially the latter, which has cheaper devving costs. Plus, it's already been established that EA would lose tonnes of sports contracts. That would hurt... badly.

If EA (apparently the largest 3rd party, as well as one of the oldest) went 1st-party, other 3rd parties could jump ship and do so as well. I could see Sony dying as a console maker due to this. Nintendo would have a chance of surviving, due to the fact that their 1st party software have sold tonnes this gen, and much of it has been lifting the Wii HW sales (Sports, Fit, Resort, etc.).

But there would be a chance that Nintendo would probably not be protected by assymetries of motivation anymore (not likely, but not impossible).

But then again, Nintendo beat out MS and Sony (both are companies with vastly more resources than little Ninty) in HW and SW sales this gen, so anything could happpen.

Oh, this is good. Except, not. Are they going to buy ActiBlizard too?

Originally Posted by Sailboat

Sounds awesome.

oh u!

I will begin a boycott of all Microsoft products if they touch Activision or EA.

Originally Posted by Silver

Yeah, because that's so selfish, despite Sony doing the same thing. Microsoft doesn't sell computers, by the way; they sell software, their most popular being Windows.

I agree Microsoft's market share is larger than it should be, and that Microsoft buying EA could shake up the video game industry harder than anytime in recent memory, but "selling games and computers" does not make them selfish. They are the same as every other business; they want your money.

But windows comes with almost all computers so its basically the same thing.
Microsoft should be broken up into 2 Companies though. I mean they paid like 30 million just to get the GTA IV dlc to be exclusive, Your telling me they aren't greedy?