By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony - The document that will change GTA forever (EA Acquisition)

ssj12 on 14 April 2008
alpha_dk said:
Dodece said:
Electronic Arts is particularly overvalued. Thus they are not a prime candidate for acquisition by Microsoft. The recent acquisition spree will drive down dividends, and year to year the company is actually becoming less profitable for share holders. There is no reason to expect that this trend will abate this year or within the next five years. Electronic Arts is actually succumbing to the competition.

Electronic Arts actually generated three billion dollars in profit last year. To the best of my knowledge the company is valued at over twenty billion dollars. That means realistically Microsoft would not generate profits from the venture for ten years. While it most assuredly would win them the high definition console war in short order the short term losses would be substantial.

Electronic Arts may be big but it is not substantially healthy. Further more the multiple platform doctrine while it is the companies strength on one side of the issue is also its weakness on the other. You could never refit this company into a console specific developers. Without incurring massive losses.

While the concept is amusing it is highly unlikely.

 Dodece says it perfectly.

 I will just add: in the act of acquiring EA, MS would hurt its chances to profit.  Right now you have them releasing on all consoles for the most part, and serving every segment of the market.  If they were bought by MS, then they would now only be releasing on 1 console (unless they kept Madden on all consoles to keep their NFL exclusivity).  Not only would this overserve that 1 console and cut into their profitability, but it would also lead to a resurgence in new studios filling the gaps in the non-MS's console's games lineup. 

All of a sudden EA would have to compete to even get people onto a console that they serve, which is a foreign concept to them.  I would assume they'd be able to adapt eventually, but perhaps not quick enough.  EA's entire business model is dependent on being able to prevent competition from taking hold in any significant form; if they start to ignore segments of the market, they run the risk of a company that isn't ignoring those segments becoming large and rich enough to start to eat into EA's segments.  The act of buying EA would intrinsically lessen EA's power.

That's something that EA can't risk, and the reason MS would be somewhat stupid to acquire EA.  It's also the reason that an EA console would go the same way as the 3DO.


 So basically we would want M$ to buy out EA. lol



PC gaming is better than console gaming. Always.     We are Anonymous, We are Legion    Kick-ass interview   Great Flash Series Here    Anime Ratings     Make and Play Please
Amazing discussion about being wrong
Official VGChartz Folding@Home Team #109453
 
Around the Network
Onyxmeth on 14 April 2008
kingofwale said:
DMeisterJ said:
gebx said:
No worries people!!

Gebx thinks MS will purchase EA anyways..

Peter Moore goes to EA, buys all the independant developers on the market and then takes part in selling EA to MS!!

Its GENIUS!!

Maybe.

Never thought of it that way.


Never thought of it that way because it's impossible.

I mean, Peter Moore went to Microsoft from Sega, did that mean Sega was to take over Microsoft? ;)
Or Sony taking over Infogram because of Harrison? (god, please no)

Frankly, Microsoft Gaming division doesn't have enough money for it. And EA being exclusive will kill themselves, they pride themselves in being multi and that's how they make money.

Actually when Peter Moore went to Microsoft, supposedly Microsoft was offering to buy Sega. The deal fell through because Sega demanded backwards compatibility for Dreamcast games on the Xbox and Microsoft refused. You can see in the beginning of the Xbox's lifespan Sega was a major contributor of new titles like Jet Set Radio Future and Sega GT 2002 to back up that Moore probably had a lot of sway at Sega still.

 



Tag: Became a freaking mod and a complete douche, coincidentally, at the same time.



alpha_dk on 14 April 2008
ssj12 said:
alpha_dk said:
Dodece said:
*snip*
*snip*

 So basically we would want M$ to buy out EA. lol


 I guess that's one way to look at it... In fact, i think that will be my preferred way to look at it from now on

 In all seriousness though, I'm not saying it would be bad for MS to have EA as their first-party developer... MS's EA just would not be as profitable as Independent EA, and it would have as much impact as any first-party dev (probably less than Nintendo's among the mass market, but more than nintendo in certain niches, and approximately equal to Sony's).  Basically it would just shift the third-party dynamics even more in favor of Activision/Blizzard, although my guess would be Ubi would naturally grow into EA's current markey position, and Capcom would likely get much bigger (their Wii support is helping their bottom line a LOT right now.  Cheap games (cost, not quality) + decent-to-amazing sales == Capcom <3 Wii.

My argument is basically that an exclusive EA is not as powerful/profitable as an independent EA, not that MS wouldn't be well served by EA (they could really use a larger first-party environment), or that the market would be better off.

The way the market is set up right now just kinda leads to the consolidation we see in EA; if EA went first-party, it would likely have to pare down and axe some studios, who would probably sign on to Activision-Blizzard, Ubi, or maybe even Sega/Nintendo/Capcom, although it seems to me that those three prefer the 'farm league' for their recruits, if that makes sense to anyone other than me.



Please, PLEASE do NOT feed the trolls.
fksumot tag: "Sheik had to become a man to be useful. Or less useful. Might depend if you're bi."

--Predictions--
1) WiiFit will outsell the pokemans.
  Current Status: 2009.01.10 70k till PKMN Yellow (Passed: Emerald, Crystal, FR/LG)

playnext3 on 14 April 2008

i don't remember when but i hear that Rochstar will be free in 2009,is that meen that however EA buy T2 or not,rockstar will always be free after 2009,i hope so,



playnext3 on 14 April 2008

if this is all true EA only make multi and the 360 fanboys have been saying looks like rockstar aint makin ps3 exclusives anny more if thats the case it also applyes to the 360 downloadable content just means EA screewd microsoft over bye takin controle of the companie and microsoft paid take two for the content EA boght take 2 AND EVERY THING IT OWNED so the rights are no longer in microsofts hands its up 2 EA what to do so whos going to have the best version of gta4 now??



Around the Network
alpha_dk on 14 April 2008
playnext3 said:
if this is all true EA only make multi and the 360 fanboys have been saying looks like rockstar aint makin ps3 exclusives anny more if thats the case it also applyes to the 360 downloadable content just means EA screewd microsoft over bye takin controle of the companie and microsoft paid take two for the content EA boght take 2 AND EVERY THING IT OWNED so the rights are no longer in microsofts hands its up 2 EA what to do so whos going to have the best version of gta4 now??

 Another company buying Take-Two would not nullify Take-Two's contractual obligations to MS.  Unless EA was willing to pay the (no doubt hefty) contract cancellation terms, and likely get sued by Microsoft as well for breach of contract, then EA would follow the previously signed contract to a T.

 Also, for others, I think this is what Playnext3 was trying to say:

If this is true:

EA only makes multiplatform games, and to date 360 fanboys have been saying that Rockstar is no longer making PS3 exclusives.  If that is the case, then it also applies to the 360's downloadable content [Editors note: I don't follow the logic here].  This means that EA screwed over Microsoft by taking control of Take-Two and its property, because if this is true then EA owns the rights to the Episodic Content, and so MS no longer has control over it.  It is now up to EA, and so who has the best version of GTA4 now



Please, PLEASE do NOT feed the trolls.
fksumot tag: "Sheik had to become a man to be useful. Or less useful. Might depend if you're bi."

--Predictions--
1) WiiFit will outsell the pokemans.
  Current Status: 2009.01.10 70k till PKMN Yellow (Passed: Emerald, Crystal, FR/LG)

cool48 on 14 April 2008
MontanaHatchet said:
Guys, GTA won't enter into a rapid downhill spin of decay. For one, they're buying Take 2. Second, it's not Ubisoft we're talking about here. EA, surprisingly, has at least SOME self-control.

 What is that supposed to mean? Ubisoft is awesome.



playnext3 on 14 April 2008

lol,i realy don't understand this guy(montanahatchet),jock or he don't now what we are talking about*

however here the resume about all this tread

EA is baaaaaaaaaaaaaaaaaaaaad