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Forums - Nintendo Discussion - Nintendo could buy EA when they're near Bankruptcy!

To reply to garnet I sorta agree. I think they could buy activision too considering the popularity of mw2 on live. I play it on PS3 but I am pretty sure there is a large following on live.



My name is blubeard because rosie has a blue beard. Just not on her chest.

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1. EASports games MUST be multiplatform - or they lose the licence.
2. Nintendo has no real use for EA
3. Wasted money
4. Sega would be a better buy and a better fit under any stretch of imagination
5. EA and UBISoft could both die, and it wouldn't affect my recent gaming library in the slightest, so I hope they DO go bankrupt and that their good IP's get purchased by competent gaming entities.



If EA dissapeared of the face of the earth I could care less considering that their brand is generic and it feels generic.



My name is blubeard because rosie has a blue beard. Just not on her chest.

NJ5 said:
marc said:
EA is insanely overvalued right now. Its market value is still hovering around $5.5 billion and a P/E of around 30 based on their old profitable quarters never mind that they are losing $1b a quarter right now.

IMO, the price is much to high which is why no one is approaching them. Many on wall street actually hyped up EA on a buyout early in 2009 and it has remained high on that speculation. If it were not for hype the company would be around $10/share with a value of around $3b which is still more than I would pay for them.

Nope the best deal on wall street was TTWO and Icahn jumped all over it pushing the price up over $10 a share. THQ is still somewhat reasonably priced but they don't have as many solid IP's. Blizzard of course was bought out by Activision and will probably be run to the ground in the next 4-5 years.

If I were one of the big guys, I would create my own studios. There is nothing worth buying right now.

If you go by PE I think almost all companies are terribly overvalued right now... Bernanke's printing press and all.

 

This is why I use a historical earnings as a guide. Certainly, PE alone is a bad basis because none of these companies even have a PE because they all recorded losses the last few quarters but PE remains a very useful indicator of value. In terms of EA, their stock has always sold significantly higher than what it should based purely on hype. First it was going to mint gold thanks to its football franchise (didnt happen). Then it was going to print platinum bills because it was a "video game" company with endless growth potential. Now its all about a buyout that has not materialized in even a glimmer of interest by anyone. EA has one of the best PR and hype departments in the stock market which is why I believe that are overvalued.

On that note, other companies are actually a good value in comparison to EA. THQ is extremely underrated imho. Look at their sales last month compared to EA. EA+EAsports = 1,227,000. THQ = 864,000. EA has a market value of $5.5 BILLION. THQ has a market value of $352 million... TTWO was a good buy a few weeks ago when it dropped below $8 a share but Mr. Icahn jumped all over it like bear on honey pushing it back up over $10. Even at $10, TTWO has a value of under $900 million. You could buy both TTWO & THQ for about 30% of the cost of EA. Lots of good stuff out there for those who are interested in values.



Nintendo still believes theyre in a niche industry, its clear when they are so damn lazy about updating certain features.

They clearly like small devs, and like to nurture them. Theyre much easier to keep a grip on and ultimately more profitable.

So no, Nintendo will not go near EA.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

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I'm sure they have the money to do it, but I'm pretty much equally sure that they still wouldn't do it.



Most of EA's franchises don't fit with Nintendo, I would rather see Microsoft buy them because they would keep games like the Sims on the PC (windows 7 exclusive ocfourse). Nintendo is doing great this gen but we shouldnt forget that they almost bit the dust lastgen. It's a gimmick that kept them going this gen. If they fail to deliver something new and shiny next time then they need their money to not go bankrupt themselves so it's better to play it save.



famousringo said:
No hardware maker is going to buy EA. Multiplatform development is a key part of EA's business model, and trying to make their IPs platform exclusive would ruin their value.

Multiplatform mean nothing to a nintendo branded game, they're IPs under the Nintendo name and even joint advertising may make them a profit, unlike now with the freedom of Multiplatform and losing money at a record pace.



Gaming make me feel GOOD!

You can't spell 'weak' without EA.



Things that need to die in 2016: Defeatist attitudes of Nintendo fans

Grey21 said:
Most of EA's franchises don't fit with Nintendo, I would rather see Microsoft buy them because they would keep games like the Sims on the PC (windows 7 exclusive ocfourse). Nintendo is doing great this gen but we shouldnt forget that they almost bit the dust lastgen. It's a gimmick that kept them going this gen. If they fail to deliver something new and shiny next time then they need their money to not go bankrupt themselves so it's better to play it save.

EA under MS would be an automatic bankrupt, because MS games only carry so much weight, and letssser..er wait did you just say Nintendo almost bit the dust last gen? While making profits off bought GC and GB, and you refered to Nintendo IS A GIMMICK....wooooooow...



Gaming make me feel GOOD!