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Forums - Nintendo Discussion - Should the 'Microsoft Buying E.A' rumors become true, what is the effect on Nintendo

OTBWY on 30 January 2018
Pyro as Bill said:
Ka-pi96 said:

You got a source for that? I guess that would explain why the PSP/Vita/DS etc had FIFA games, but still I'd like to see an official source.

I really don't think it would hurt PS though. Probably the single important difference between the popularity of FIFA and PES is the amount of licences each game has. If FIFA's suddenly selling to a much smaller potential audience you'd expect the leagues/clubs to only be willing to give them shared licences (if not taking them away completely) and then all of a sudden PES isn't at a huge disadvantage anymore.

Not only that, but Sony could also counter by resurrecting their This is Football series. I played one of those on the PS2 and it was great fun so I'm sure there'd be no shortage of people that would jump on that if Sony were to start it up again.

Seriously? What would be bigger than losing FIFA?

He's a Brit like me, he should know better than that. FIFA is like the number 1 game in Europe for Sony, especially in the UK. EA has the highest market share here with 17%. It would definitely hurt.



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celador on 30 January 2018
CGI-Quality said:

Of course, Sony could do something similar (Capcom and Take Two, as examples). Now, of course, I don't expect any of this to occur, and I can't see them just "reacting", but there are options should Microsoft head this route.

Xbox wouldn't just start dominating because of that acquisition, however.

yeah, it's kind of silly how much traction this has got for such a throwaway line in an article. MS want to acquire EA like Sony would love to buy Rockstar or Ubisoft, but it's not going to happen, especially when EA are doing so well. Feels like these rumours crop up every few years, and MS always end up doing nothing, or making a (relatively) smaller acquisition like Minecraft. 



freebs2 on 30 January 2018
Ka-pi96 said:
freebs2 said:

https://www.forbes.com/sites/greatspeculations/2017/10/10/fifa-remains-eas-bread-and-butter/#61256b662140

huh... that reflects pretty poorly on the rest of EA then. They put out a shit tonne of games and 40% of their revenue comes from one single title? heh, makes you wonder how much of Take 2/2k's revenue comes solely from GTA then

Not really surprising. FIFA is actually the main reason why EA can afford to publish such a shit amount of games. AAA productions and developing a technology like the Forstbyte require great investments and risk. A normal company wouldn't be able to sustain that level of risk without relying on a cash cow to even potentiall losses. FIFA is the cash cow.

Also I wold argue FIFA is bigger than GTA, while GTA can hold the sales record for the single episode, if you consider annual revenues of each franchise and the level of risk/investment involved in publishing a new entry in the series, FIFA is a more secure source of income.

Last edited by freebs2 - on 30 January 2018

OTBWY on 30 January 2018
Ka-pi96 said:
OTBWY said:

Hundred? It's not a fortune 500 company mate. This is a video game company with a revenue of about 4.8 billion and a market cap of 27.4. Valuation would be much much lower.

Exactly...

If the shareholders agreed to sell all their shares to Microsoft at the current market value it would cost 27 billion then. But why would they sell at the current market value? They'd gain nothing from that. They'd want a fair bit over current market value. So it would surely be closer to a hundred billion than to a few (ie. 2 or 3) billion.

How? By making up numbers from stock that isn't near that value? A hundred would mean close to a top 20 fortune 500 company man. It's nowhere near that amount. Not with all assets and stock and everything. Microsoft would not even look at a video game publisher for that kind of value if it were true. So whatever value you're thinking of, it's way off the mark.



ampersand on 30 January 2018

The market cap of EA is under $40 billion so it wouldn't be much of a stretch. It will be interesting to see what happens, especially after the great EA earnings report today.



“Some parents let their young kids win at games, but mine never did. I don't think it was because they were particularly competitive, they just wanted to teach me a valuable lesson. Life is mostly just learning how to lose.”

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Nem on 30 January 2018

Microsoft isn't terribly better, but if it would mean the end of EA... heck, i hope they buy them.

Get the Antem's and the FIFA's and all their glorified loot boxes in one spot i can ignore. Sounds grand to me.



OTBWY on 30 January 2018
Ka-pi96 said:
OTBWY said:

How? By making up numbers from stock that isn't near that value? A hundred would mean close to a top 20 fortune 500 company man. It's nowhere near that amount. Not with all assets and stock and everything. Microsoft would not even look at a video game publisher for that kind of value if it were true. So whatever value you're thinking of, it's way off the mark.

So why do you think EA are only worth a few billion, ie. the same price MS paid for Mojang? >50 million (ie. closer to 100 than what you were saying) doesn't seem all that much of a stretch at all from a $36 billion market cap to me. At least not anywhere near as much as a stretch as your 2 or 3 billion would be...

I never said 2 or 3 billion. I said a few. Don't put words in my mouth. That said, market cap is not the most important thing. Everything is looked at. Assets, actual cash, revenue and more. Market cap could actually change pretty quickly as stock does. What would happen to that stock, do you have an idea? I doubt it.



GhaudePhaede010 on 30 January 2018

None. Nintendo and EA have a rocky relationship that will not be changed by Microsoft buying EA.



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OTBWY on 30 January 2018
Ka-pi96 said:
OTBWY said:

I never said 2 or 3 billion. I said a few. Don't put words in my mouth. That said, market cap is not the most important thing. Everything is looked at. Assets, actual cash, revenue and more. Market cap could actually change pretty quickly as stock does. What would happen to that stock, do you have an idea? I doubt it.

There's a difference?

Going to interpret what a few means for me are you?



Nogamez on 30 January 2018

These rumours aint gonna come true though