Because they are like any other business that wants to grow. They want to have as little competition as possible, so buying them out puts them on the same team. Buyouts also pertain to intellectual property as well so stand to gain a lot when they buy out companies.

I think EA is simply a case of what we in Norway call "Much wants even more", I really don't see any other reason for these buyouts besides aquiring power in the market. It certainly is not to improve the quality of titles...
In 10-15 years, maybe there are only two dev's left in the world who control everything, two raging behemoths who can run the market any way they please (think Windows all over again).
Will this be good for us gamers? No, I don't think so.
Will it happen? No idea, but things are starting to look spooky from over here, what with all the mergers, buyouts and "rescues" in later years.

EA won't go hardware. They make enough money on software, and they have no liabilities when it comes to hardware. You don't have to worry about selling your system below cost to gain marketshare-- once the game is out, you collect your money and put it into the next game.

And what the heck is up with all the Cat love around here? wtf?

EA and MS are American corporations. The EU wouldn't be able to stop MS if they wanted to buy them. 

may I point out that Konami have PES, which is currently more sucessful than FIFA, and is more popular than Madden worldwide

Also, EA do own some studios that do fine, such as Criterion and the devs of Battlefield Bad Company. It would be unfair to say that they do not release any good games, even if they release tons of crap

Didn't read the entire thread, but the reason is that everyone knows EA can't make good games themselves, so they buy up great studios so they can attach their own name to the product.

because they can and because they're smart.

that would be interesting to see an EA console for the 8th gen (i think it'll be 8th) of gaming, along with Xbox 720, PS4, Wii 2, and an apple console!

@ Rocketpig -- It depends on the situation. Given the global reach of these corporations, the EU is increasingly weighing in on such deals -- especially if they hope to sell in Europe.

@ d21lews -- Wii owners typically aren't looking for Mass Effect and GTA4. And there are almost as many of them worldwide as there are PS3 and Xbox 360 owners combined.

Mike from Morgantown

It also makes sense financially. You reduce your risk if you have a big company behind you, a la EA. That way you can make (insert game here) at a huge budget and not worry about going under before the game can be released.

^^ Welcome to VGChartz ReggieNator :) have fun :)