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220°

Will Electronic Arts be bought out?

Analysis-Electronic Arts, as a company, are underperforming. The industry as a whole is booming like crazy yet EA are delivering lackluster results both in terms of growth and in terms of profit. Meanwhile competitors like Activision/Blizzard and Ubisoft have been massively outperforming.

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bruceongames.com
Bruce Everiss6405d ago ShowReplies(2)
Forbidden_Darkness6405d ago

If there going to be bought by a company, please dont let it be activision.

Zip6405d ago

LOL yeah!!!! that way we will see 4 call of dutys each year xD

beavis4play6405d ago

it's hard to imagine any entity taking such a huge risk as to buy something the size of EA.

Bruceongames6405d ago

EA at today's stockmarket price is worth just $6 billion. There have been masses of takeovers far bigger than this. Vodaphone, for instance, paid $183 billion to buy Mannesmann.

Now is the time to buy with the stock price so cheap and there are plenty of companies that can easily put their hands on $6 billion!

coolfool6405d ago (Edited 6405d ago )

EA being buyable is one aspect but another is who would want to buy it? Who wants to buy a ship with a hole in it? Now, if a buyer thinks that hole can be patched then they might be interested. But if it was that easy then you'd imagine the current guy at the helm attempting to do just that. What if the problem was more deep rooted than that? What if the devs working for EA just aren't good enough?

Now I don't really believe that, plenty of games show that there is talent within the depths of EA. As some other gamers have suggested in other comments, it is probably a change in EA's development model that needs to change. They need to hold of on getting the returns from a game just that little bit longer so that the game ships only when it is really ready. This will involve a slightly less greedy approach than what they have been taking of late.

Jdoki6405d ago

Off topic: Yeah, and when Vodafone paid that for Mannesmann the knock on effect was a re-stating of price and the biggest ever loss reported in UK corporate history! :)

On topic: I think EA are going to do OK. They are a bit bloated, and could probably do with pruning a bit of middle management, but they've identified that new IP is important for their image - even if it's not really contributing to the profitability (but then again what new IP has done seriously well in 2008? Possibly Dead Space, but everything else has been lacklustre).

I can see their sports division evolving over time now Peter Moore is at the wheel.

EA have already come a long way from the company that just churned out yearly updates of core franchises.

Who knows... Their underperformance now, may be directly related to internal restructuring efforts.

I would also argue that 'booming' might be a bit to strong a term for the video games market. It's much more recession proof, but it will suffer.

Any comparisons to Ubi or ActiBlizz are a little foggy at best. Each has got to the size they are today through extremely different means.

Ubisoft through organic growth and new IP.
ActiBlizz by merging
EA through their core IP/franchises and 'asset stripping' other developers

Oh, and finally... Why no jab at the PS3 Bruce? I would have thought you'd have found some way to lay EA's apparent slump at the door of the PS3!! :)

Mr_Bun6405d ago

The day I start taking Bruce seriously is the day Patcher becomes systematically correct with his predictions

+ Show (1) more replyLast reply 6405d ago
6405d ago Replies(4)
Final_Rpg6405d ago

EA have actually released some decent games this year. E.g. Mirrors Edge, Spore, Dead Space and Fifa was better than usual. Much more quality than I anticipated from them

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50°

44% of games industry professionals have considered leaving the industry as a result of redundancies

New report from Skillsearch found that 22% of those surveyed had been laid off within the past 12 months.

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gamesindustry.biz
Cockney66d ago

Well if that 44% left im sure there would be a lot less redundancies

40°

Stop Killing Games on the latest European Commission public hearing

It's a step forward for Stop Killing Games.

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rockpapershotgun.com
50°

"Be creative 99% of the time" – Glen Schofield on how creativity can help fix AAA industry woes

The Callisto Protocol director thinks the solution involves the right people, the right timing, and perhaps a little bit of AI

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gamesindustry.biz
lodossrage67d ago

I don't agree with that. I WISH I could agree with that. But buying habits and customer opinions prove otherwise

We've seen developers in the AAA space try new things and ideas. More often than not, the customers aren't willing to give things a chance, or not enough people buy into the project for it to grow.

Creativity works better in the indie space because the budgets, pressures, and expectations aren't the same.

Scissorman66d ago

it's a nice idea and it worked during the PS2/PS3-era when AAA didn't cost hundreds of millions of dollars. smaller budgets and shorter development time left room for more creativity and more risk. a game didn't need to sell 4 million+ copies to break even. things are different now.

__y2jb66d ago

This is the guy who bragged about crunching his staff and having them work through the night. Crunch culture has lost more talent and done more damage to the industry than any other factor. Screw him.