EA buys 20% of Ubi Soft and EA becomes largest owner

Sonic said:
MS itself has plans to increase its 1st party devs threefold despite the recent sale of the remaining XSN dev houses.
???

This would be (welcome) news to me. Have any source for it, or is it just speculation?
 
A company the size of Sega Sammy is far out of the price range for EA. When the SEGA deal between CSK and Sammy occurred last year, EA looked to partners/creditors when considering a bid to finance only a portion of the company's shares. The Sammy merger has more than doubled the full value, and the new company is aggressive in their independence. They've also just announced a large share buyback.

EA did have a lot of funds left over for potential acquisitions after looking into SEGA, though, so it's not surprising to see them go for a string of moves.
 
Inane Dork, it is not just speculation. I have no link or source to confirm it, but going by a few individuals who work for MS the seem to be eager to make a bigger chunk of money from the software side next time around. MS can't rely on the Halo name for everything. And I wouldn't be surprised if there wasn't another Rare sized developer added to the MS list.
 
Sonic said:
Inane Dork, it is not just speculation. I have no link or source to confirm it, but going by a few individuals who work for MS the seem to be eager to make a bigger chunk of money from the software side next time around. MS can't rely on the Halo name for everything. And I wouldn't be surprised if there wasn't another Rare sized developer added to the MS list.

Hopefully if they get another RARE sized developer they get more production ot of them. I know before MS bought RARE there had been talk of how RARE had lost a lot of their lead talent. e.g. Some key members from the Goldeneye 007 team left and formed FreeRadical, the makers of the TimeSplitters series. RARE has made some awesome games in the past, and I hope for MS sake that they have been dumping all their efforts into Xbox2 release titles. I would be disappointed if a Perfect Dark game did not come out in 2005. PD in 2005 and HL3 in 2006 would be a pretty good One-Two for MS, maybe even a Banjoo-Twooie. I guess we can wish :)
 
Sonic said:
Inane Dork, it is not just speculation. I have no link or source to confirm it, but going by a few individuals who work for MS the seem to be eager to make a bigger chunk of money from the software side next time around. MS can't rely on the Halo name for everything. And I wouldn't be surprised if there wasn't another Rare sized developer added to the MS list.
Interesting. Thanks for the answer.

Ebert and I give you two thumbs up. ;)
 
Sometimes it feels if EA is looking for someone to buy it out. It is beefing up its protfolio for possible future investment from a big movie company maybe. It would be inmteresting to see someone like Fox or Universal make an investment in EA.
 
Sonic said:
Sometimes it feels if EA is looking for someone to buy it out. It is beefing up its protfolio for possible future investment from a big movie company maybe. It would be inmteresting to see someone like Fox or Universal make an investment in EA.

Or Columbia or MGM...or Pixar... :oops:
 
Qroach said:
pixar? they don't have enough money to buy EA. probably the other way around ;)

The question is would an EA-Pixar endeavour save the world from another FIFA 2xxx sequel! :p At least we'd get nice motion blur! :)
 
I read this in http://forums.gaming-age.com/showthread.php?t=28563

Source: WSJ Online

Video game makers face an ''arms race''

Several other sequels, including "Grand Theft Auto: San Andreas" and "Doom 3," have lived up to their blockbuster billings -- and Hollywood-level budgets. U.S. videogame sales are expected to rise 10% this year to $7.76 billion, according to Wedbush Morgan Securities.
[...]
"If you're not making a lot of money right now, you're not going to make it in the next generation," says Jeff Brown, vice president of communications for Electronic Arts Inc., the publisher of "Madden NFL 2005" and the industry leader with annual sales of nearly $3 billion.

How do the hardware makers feel as one single publisher holds almost half of their market. I know 3rd parties are a must for the industry, but isn't EA too big?
 
Johnny Awesome said:
The first number is for US software and the second is for EA's worldwide sales.

EA is about 25% of the gaming market right now.

Thanks for the clarification. 50% is scary, 25% is enough to begin to worry about. Mmm, or at least I think so (but just a thought, I'm not an expert, not even an aficionado...).
 
Magnum PI said:
PS3 will live, even without EA support..
True, but Sony would have to kiss North American and possibly European leadership goodbye till PS4. And considering the size of those markets, I rather doubt Sony would let that happen easily.

Though I am sure MS would love to turn the GTA3 thing back on Sony and raise the stakes. EA represents astronomical stakes, though.
 
Magnum PI said:
PS3 will live, even without EA support..

if this happens (and it won't), EA will suffer more than sony.

I disagree, I think Sony would be hurting a lot more than EA.

I think PS3 would live, but I think it would lose its domination position in the US--it would be killer PR and it would put a dent into their PS3 goals and profits. How would Sony handle selling 40mil PS3 versus 75? That means a lot let software being sold and thus less royalties. I think EA would do fine (I am sure they would get some serious kick backs, not to mention the other platforms will sell). If EA decides to ignore a platform it will be a serious killer in the US. Out of the big Three Sony would be able to take this blow the best, but if EA went with MS/Nintendo I could easily see Sony being losing market position, especially with the Xbox2 rumored to come out next year. It is all about the games, and Sony would have a massive hole in their library and would have given their competitor a one year headstart.

EA dumping any platform would be traumatic. e.g. No NFL Football. That is a pretty big market of people to lose out on. One of the key areas the PS/PS2 has been a leader is in sports. If you took away the NFL, FIFA, NASCAR, Tiger Woods, NBA Live, MVP Baseball, NHL, Fight Night, NCAA Football, etc... that would totally decimate a sports lineup. While other developers could fill some of these holes, they could never fill the Professional Football void with the exclusive. I think Madden and ESPN sold 5million copies this year... those are 5 million reasons to buy another console if EA abondons a platform.

And when you begin to consider EA's other brands & movie tie ins: Battlefield, The Sims, Medal of Honor, Harry Potter, LoTR, James Bond, NFS, Burnout, and so on. EA had 22 games sell over 1 million copies last year. They are huge. I do not own a lot of EA games, but there is no denying how massive they are.

And if that was not enough... think of the N64. The N64, while a financial success, is where Nintendo lost their market leadership. Why? 3rd party developers were going elsewhere. Where ever EA goes, and all the EA exclusives, that means there will be consoles sales. Install base means profits. In general, if I am a developer and want to make money I go to the biggest install base.

And if you start to consider how much Sony has invested into the PS3 and how much they may lose per console sold, losing the biggest 3rd party publisher would be bad news.

Just my opinion... but I do not think anyone--Sony, MS, or Nintendo--can afford to lose EA support if they wish to stay in the mainstream. Nintendo looked pretty intimidating back in the day, but they lost their market leadership. No one is immune.

Maybe I overestimate EA, but 22 million sellers in one year is pretty amazing. Maybe Bill Gates sees this thread and is putting in some of his own money to buy EA :) I do not think anyone, even Sony, is immune to EA.
 
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