RUMOR: MICROSOFT CONSIDERING ACQUIRING EA, VALVE, & PUBG CORP (Shots fired at Sony)

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RUMOR SUGGESTS MICROSOFT HAS CONSIDERED ACQUIRING EA, VALVE, PUBG CORP

BY JORDAN OLOMAN A rumor currently doing the rounds suggests that Microsoft has considered acquiring EA, Valve and PUBG Corp.

"A reliable source close to Microsoft" told Polygon the news, with reports of "internal shifts" at Microsoft creating the necessary situation for an acquisition.

SuperDataResearch analyst Joost Van Dreunen further told Polygon that he expects more news about an acquisition soon.

"Because of where we are in the lifecycle of all these things, I’m expecting to hear Microsoft announce something very, very shortly".

This follows the promotion of Xbox head Phil Spencer to Microsoft's senior leadership team, which he deemed "a great show of commitment" to its gaming portfolio.

A large acquisition of this nature, especially of publishing titan EA, would be a substantial step in bolstering Microsoft's gaming software division.

This rumored development would not mark the first time Microsoft has acquired another company, previously paying $2.5 Billion for Minecraft developers Mojang in 2014.

In regards to PUBG Corp, this move would certainly capitalize on the success of PlayerUnknown's Battlegrounds following its exclusive release through the Xbox Game Preview program.

A separate rumor circulated in October suggests that the exclusivity deal could be extended even further

IGN has reached out to representatives from EA, Valve, and PUBG Corp for comment.

http://www.ign.com/articles/2018/01...t-has-considered-acquiring-ea-valve-pubg-corp

 
The Pros and Cons To Microsoft Purchasing Electronic Arts


By ROBERT WORKMAN - January 29, 2018
ea-xbox-1079341.jpeg

Earlier today, we reported the news that Microsoft was looking into some key acquisitions to get its 2018 gaming year started on the right foot, and an interesting name surfaced as a result – Electronic Arts. Yes, the mega-titan behind such games as Mass Effect: Andromeda, Star Wars: Battlefront II and various sports hits like Madden and FIFA came up as a topic in discussion when it came to bolstering the Xbox brand, according to sources.


Now, nothing is official yet, and Microsoft nor EA have said a word on what’s happening. But it’s a pretty spectacular union to imagine. That said, there are a lot of positives that can come from it – along with a couple of negatives that will no doubt be hard to overlook.

Let’s weigh the pros and cons in terms of what could come from a deal such as this:

SLIDE 1/5 – POSITIVE: MICROSOFT EASILY GAINS MORE STATURE IN THE GAMING MARKET
ea-xbox-2-1079336.jpeg

Microsoft struggled last year with its lackluster Xbox One line-up, despite the introduction of the Xbox One X. The cancellation of Scalebound and Fable Legends angered quite a few gamers, and Crackdown 3’s delay didn’t help either.

By purchasing EA outright, Microsoft would have access to some of the biggest game licenses on the planet, including Star Wars (via a partnership through Disney), Madden, FIFA and countless others. It may continue to stamp them with the EA brand, though, to avoid confusion. (Depends on the fine p


These would mean big things for the Xbox One and Xbox One X, as Microsoft could easily market these as huge “gets” for the console and help improve its sales, not to mention its services.

But then, there’s the other side of that…

SLIDE 2/5 – NEGATIVE: WHAT DOES THIS MEAN FOR PLAYSTATION AND NINTENDO?
ea-xbox-3-1079337.jpeg

There’s no question that EA has been one of the biggest third party developers out there, making killer titles for the PlayStation 4, and starting to gain traction into Nintendo Switch development. If Microsoft picked up the publisher, there would be no guarantees that we’d see EA games on the PS4 and Switch – and that could be bad news for fans of sports and certain franchises.


Now, Microsoft could operate the business separately, as it is with Mojang, meaning that their games could still come to PS4 and Nintendo Switch. But it would obviously save the best assets for the Xbox One version, it seems, and that means those players possibly getting the short end of the stick. That’s not a guarantee, mind you, but if you had access to exclusive franchises, would you want to share them with others?

SLIDE 3/5 – POSITIVE: XBOX GAME PASS COULD SEE A HUGE BOOST
ea-xbox-4-1079338.jpeg

With the acquisition of Electronic Arts, Microsoft could do something really remarkable with its Xbox Game Pass service. Along with introducing first-party exclusives that would remain with the service, the company could also combine EA Access’ services into the program, introducing trial access to upcoming games, as well as a vault which players could access at any time – and we mean a better one than the Game Pass currently has.


Maybe Microsoft would leave both programs as they were, but it sounds like an ideal union between the two, especially if all their features could work together. It’d certainly give PlayStation Now a run for its money, that’s for sure – and who knows what else Microsoft could introduce to make it work.

SLIDE 4/5 – NEGATIVE: WHAT WOULD THIS MEAN FOR GAME STUDIOS AND BUSINESS PLANNING?
ea-xbox-5-1079339.jpeg

There’s a question that comes with the business Microsoft would conduct should it pick up Electronic Arts. After all, the publisher has several studios in its fold, and there’s no guarantee that they’ll stay open. Just look at what happened with Visceral Games.

Microsoft doesn't hold back when it comes to the cancellation of high-profile projects, and, in the hopes of earning profits, it could easily make some decisions to try and focus more on popular brands. This could be bad news for some studios – like, for instance, Respawn Entertainment, which was acquired by EA last year.Titanfall 2 was a big hit with fans, but didn’t sell as well as expected. Would Microsoft use this business logic to “trim the fat”, as it were, and keep core studios up and running?


This isn’t confirmed, mind you, but considering how Fable Legendsand Scalebound were treated so late in development, it is something to think about if the deal goes through. And, for that matter, there’d be very little interest in reviving franchises like Dead Space, save for caving in to massive fan demand.

Also, Microtransactions – how would they fare in the shake-up? We know EA cancelled its elaborate plans for loot boxes with Star Wars: Battlefront II at the last second, but Microsoft ran business as usual with its Forza Motorsport 7 system. Would this be something that the company would absolutely require with its future games, or would it consider a more savvy business plan for gamers? It’s hard to tell, and, again, something to ponder.

SLIDE 5/5 – POSITIVE/NEGATIVE: PEOPLE WOULD BE TALKING LIKE CRAZY ABOUT THE DEAL
ea-xbox-6-1079340.jpeg

There’s been a lot of buzz behind the rumored acquisition – so much, in fact, that it’s driven EA’s stock up a few points as a result. The talk surrounding this potential deal is huge, with everyone asking, “What if?” That buzz could certainly work in Microsoft’s favor leading into E3, getting people excited for whatever it has planned next for the Xbox One and Xbox One X.


But there’s a flip side to that, as this would also bring up many critiques about how Microsoft is simply trying to “buy a solution” instead of digging deep and coming up with projects that gamers would be excited about. Sure, people would be thrilled with the new FIFA or Star Wars games as they’re announced, but, by the same token, they’re also wondering if this would push back the new Gears of War or whatever else Microsoft would originally have planned. After all, the company had a fully loaded docket of original games a couple of years ago. Now, you can count their upcoming exclusives – at least, the ones that haven’t been revealed yet – on one hand.

This deal has many different questions behind it, but we probably shouldn’t think too deeply on it until it actually happens – if it happens, mind you. But one thing’s for sure – the gaming industry would never be the same again. And that could be good or bad news, depending which side of the fence you’re on.

http://comicbook.com/gaming/2018/01/30/positive-negative-microsoft-electronic-arts-buyout-deal/
 
Wow. I just hope Microsoft makes power moves and doesn't fuck shit up with that purchase.
 
Cheap mofos about to rejoice.

No matter what I hope as a consumer quality is still being put out via different game studios.
 
Pubg is a maybe, it's a good game I suppose it would be good to keep it exclusive.

Valve is a private company and is raking in cash with steam, so unless Gabe Newell is just ready to cash out and retire I don't see that happening. It would be interesting if they could acquired the IP rights to some of valve's series that seem to be abandon. A new half life and portal would be cool

EA is interesting, but I don't see how it fixes Xbox. EA has a lot of IP, but they are a publisher, what they really need are studios.
 
Cant see it happening.

It would change the market too drastically.

I don’t know I was reading an Article about how Microsoft has 130 billion in cash reserves.

EA is valued at 35 billion... technical yeah.. Microsoft could get EA without blinking an eye.

I don’t see Valve.. I can’t see ol boy selling to his former employer. Not they way they left.

More then likely I see them buying PUB...

But man holy shit if they did buy EA..... Sony might as well close up shop without having access to madden, Star Wars, and the millions of other EA titles.

Plus EA does have that exclusive EA access shit with Microsoft. I wouldn’t say that this rumor doesn’t have some teeth behind it.
 
This is where the EA Rumor might have some teeth... Remember last year


EA's day of reckoning is here after 'Star Wars' game uproar, $3 billion in stock value wiped out
  • Leading gaming YouTube personalities believe EA will be forced to change its practices after the "Star Wars Battlefront II" micro-transaction controversy.
  • "After the communal and political backlash EA received over Battlefront II, the industry at large is going to have to walk back its loot box plans a little," Jim Sterling writes in an email.

EA's 'Star Wars' gamer outrage raises questions over microtransactions 7:10 PM ET Wed, 22 Nov 2017 | 01:10

Electronic Arts' shareholders are running for the hills this month and for good reason.

The company's profitable business model is now at risk after angry gamers revolted over its aggressive in-game moneymaking strategy in "Star Wars Battlefront II."

EA's stock is down 8.5 percent month to date through Tuesday compared with the S&P 500's 2 percent gain, wiping out $3.1 billion of shareholder value. Its competitors Take-Two and Activision Blizzardshares are up 5 percent and 0.7 percent respectively during the same time period.


After EA gave a December quarter sales forecast slightly below Wall Street estimates on Oct. 31, some analysts suspected it was due to the "Stars Wars" title. The shares fell 4 percent the following day.

Then an uproar began after details about the game's character progression were revealed, a system so tedious players are resorting to rubber bands on controllers to acquire credits to level up.

The gaming community flooded social media and Reddit with thousands of negative posts, saying EA is unfairly compelling consumers to spend more money through micro-transactions for content that should be part of the initial $60 game price.

The controversy seems to be hurting the sales of the game, which was officially released on Nov. 17.

First week U.K. physical game sales of "Star Wars Battlefront II" declined 61 percent compared with "Star Wars Battlefront" from two years ago, according to GfK ChartTrack data. And the game is still not on the top 100 list of Amazon's best-selling video games year to date as of Tuesday.

One Wall Street analyst is also not impressed from his checks during the recent crucial holiday weekend.

"We were underwhelmed by sell-through for Star Wars: Battlefront II (EA) over the Black Friday weekend, which follows a controversial launch for the game," Stifel analyst Drew Crum wrote in a note to clients Sunday.

The game's weak sales are a secondary issue for Electronic Arts. The viability of its profitable micro-transaction strategy is now in question going forward.

Politicians vowed to take action to protect underage kids from the game's monetization practices. One Wall Street analyst is even calling for the industry to self-regulate before the government gets involved.

"Battlefront II is the pointy tip of the iceberg. … The biggest recent controversy has centered around EA's Star Wars Battlefront II, where early evidence suggests player anger over a mishandled loot box economy may in fact be impacting initial sales," Cowen's Doug Creutz wrote in a note to clients Monday. "We think the time has come for the industry to collectively establish a set of standards for MTX implementation, both to repair damaged player perceptions and avoid the threat of regulation."

However, with the increasing spotlight from the media and gaming community on the issue, Electronic Arts will likely be forced to dial back its extreme monetization strategies across its franchises, hurting future profitability.

EA chief financial officer Blake Jorgensen told investors in February its "Ultimate Team" sports micro-transactions business generated $800 million in high-profit margin sales for the company during the previous year. He added EA intended to extend a "similar mechanic" to its other franchises such as "Battlefield" and "Battlefront."

Now that whole strategy is at risk.

Leading gaming YouTube personalities believe EA will be forced to change its practices after the "Star Wars Battlefront II" micro-transaction controversy.

"After the communal and political backlash EA received over Battlefront II, the industry at large is going to have to walk back its loot box plans a little," Jim Sterling wrote in an email.

Joe Vargas of the AngryJoeShow, who has 2.8 million subscribers for his channel, agreed EA will be forced to permanently change its ways.

"I think gamers have drawn a line in the sand at pay to win loot boxes being tied directly to player progression in Triple AAA games. If EA continues that exact type of practice that was initially in Battlefront II then yes I'm sure it would backfire once again," he wrote in an email. "I don't think they will ever completely remove their loot box systems … instead the best course of action would be to keep it to cosmetic and bonus pieces for only the games where it makes sense instead of this recently insulting shotgun cash grab approach of stuffing ALL their major titles with it. The market will only handle so much."

Electronic Arts shares are still up 39 percent year to date through Tuesday in anticipation of future profits stream from micro-transactions.

Investors are likely to get disappointed under the new industry environment.

https://www.cnbc.com/2017/11/28/eas-day-of-reckoning-is-here-after-star-wars-game-uproar.html
 
definitely some smoke here

EA stock gains after report of Microsoft acquisition interest

Electronic Arts Inc. EA, +0.15% shares moved higher Monday after a lightly-sourced report that Microsoft Corp. MSFT, -1.25% had considered an acquisition of the videogame publisher. Gaming blog Polygon, in a longer article about Microsoft's difficulties in establishing exclusive games for its Xbox game console, reported that "a reliable source close to Microsoft" said that the name had been bandied about as a possible acquisition target to land some exclusive titles. Other potential targets mentioned in the story included Valve and PUBG, while Microsoft actually announced a gaming acquisition Monday morning, though its was not a game publisher. EA stock gained more than 2% in Monday trading with about an hour to go in the trading session, and has increased 41.2% in the past year as the S&P 500 index SPX, -0.87%has increased 25.2%.

https://www.marketwatch.com/story/e...-of-microsoft-acquisition-interest-2018-01-29
 
EA has a lot of untapped potential. They would just need to make sure that sports stay multiplatform. Anthem, Dragon Age, Mass Effect, The Sims and other games would be huge as exclusives. But I would hope they would revive dead franchises like Fight Night, Def Jam and Dead Space.
 
This is where the EA Rumor might have some teeth... Remember last year


EA's day of reckoning is here after 'Star Wars' game uproar, $3 billion in stock value wiped out
  • Leading gaming YouTube personalities believe EA will be forced to change its practices after the "Star Wars Battlefront II" micro-transaction controversy.
  • "After the communal and political backlash EA received over Battlefront II, the industry at large is going to have to walk back its loot box plans a little," Jim Sterling writes in an email.

EA's 'Star Wars' gamer outrage raises questions over microtransactions 7:10 PM ET Wed, 22 Nov 2017 | 01:10

Electronic Arts' shareholders are running for the hills this month and for good reason.

The company's profitable business model is now at risk after angry gamers revolted over its aggressive in-game moneymaking strategy in "Star Wars Battlefront II."

EA's stock is down 8.5 percent month to date through Tuesday compared with the S&P 500's 2 percent gain, wiping out $3.1 billion of shareholder value. Its competitors Take-Two and Activision Blizzardshares are up 5 percent and 0.7 percent respectively during the same time period.


After EA gave a December quarter sales forecast slightly below Wall Street estimates on Oct. 31, some analysts suspected it was due to the "Stars Wars" title. The shares fell 4 percent the following day.

Then an uproar began after details about the game's character progression were revealed, a system so tedious players are resorting to rubber bands on controllers to acquire credits to level up.

The gaming community flooded social media and Reddit with thousands of negative posts, saying EA is unfairly compelling consumers to spend more money through micro-transactions for content that should be part of the initial $60 game price.

The controversy seems to be hurting the sales of the game, which was officially released on Nov. 17.

First week U.K. physical game sales of "Star Wars Battlefront II" declined 61 percent compared with "Star Wars Battlefront" from two years ago, according to GfK ChartTrack data. And the game is still not on the top 100 list of Amazon's best-selling video games year to date as of Tuesday.

One Wall Street analyst is also not impressed from his checks during the recent crucial holiday weekend.

"We were underwhelmed by sell-through for Star Wars: Battlefront II (EA) over the Black Friday weekend, which follows a controversial launch for the game," Stifel analyst Drew Crum wrote in a note to clients Sunday.

The game's weak sales are a secondary issue for Electronic Arts. The viability of its profitable micro-transaction strategy is now in question going forward.

Politicians vowed to take action to protect underage kids from the game's monetization practices. One Wall Street analyst is even calling for the industry to self-regulate before the government gets involved.

"Battlefront II is the pointy tip of the iceberg. … The biggest recent controversy has centered around EA's Star Wars Battlefront II, where early evidence suggests player anger over a mishandled loot box economy may in fact be impacting initial sales," Cowen's Doug Creutz wrote in a note to clients Monday. "We think the time has come for the industry to collectively establish a set of standards for MTX implementation, both to repair damaged player perceptions and avoid the threat of regulation."

However, with the increasing spotlight from the media and gaming community on the issue, Electronic Arts will likely be forced to dial back its extreme monetization strategies across its franchises, hurting future profitability.

EA chief financial officer Blake Jorgensen told investors in February its "Ultimate Team" sports micro-transactions business generated $800 million in high-profit margin sales for the company during the previous year. He added EA intended to extend a "similar mechanic" to its other franchises such as "Battlefield" and "Battlefront."

Now that whole strategy is at risk.

Leading gaming YouTube personalities believe EA will be forced to change its practices after the "Star Wars Battlefront II" micro-transaction controversy.

"After the communal and political backlash EA received over Battlefront II, the industry at large is going to have to walk back its loot box plans a little," Jim Sterling wrote in an email.

Joe Vargas of the AngryJoeShow, who has 2.8 million subscribers for his channel, agreed EA will be forced to permanently change its ways.

"I think gamers have drawn a line in the sand at pay to win loot boxes being tied directly to player progression in Triple AAA games. If EA continues that exact type of practice that was initially in Battlefront II then yes I'm sure it would backfire once again," he wrote in an email. "I don't think they will ever completely remove their loot box systems … instead the best course of action would be to keep it to cosmetic and bonus pieces for only the games where it makes sense instead of this recently insulting shotgun cash grab approach of stuffing ALL their major titles with it. The market will only handle so much."

Electronic Arts shares are still up 39 percent year to date through Tuesday in anticipation of future profits stream from micro-transactions.

Investors are likely to get disappointed under the new industry environment.

https://www.cnbc.com/2017/11/28/eas-day-of-reckoning-is-here-after-star-wars-game-uproar.html


They keep trying to sell us half a game and want to sell us the other half through micro transactions!
 
Wow. I just hope Microsoft makes power moves and doesn't fuck shit up with that purchase.
Well, they cant fuck up EA. Their work environment could use the structure (taken from a buddy of mine who worked on their Madden games). Their take over of Bungie's Halo didn't miss a beat either.

I like the move.
 
Microsoft Interested In Buying Electronic Arts?
By
Garth FranklinTuesday, January 30th 2018 6:34 am

A new piece at Polygon has floated rumors of the next potential major multi-billion dollar media deal in the wake of Disney’s acquisition of Fox. While there has been plenty of speculation about Apple potentially buying Netflix, their report is about one of Apple’s main rivals – Microsoft.

Their sources say ‘internal shifts’ at Microsoft, including the promotion of Xbox head Phil Spencer to Microsoft’s senior leadership team, has apparently created the necessary situation for an acquisition. Microsoft reportedly has a cash stockpile of at least $130 billion, boosted by recent tax cuts favoring large corporations.

That war chest could be used to purchase a big company with the site’s sources saying the enormous but widely derided Electronic Arts (valued at around $35 billion) could be up for purchase. Also on the list are Steam game service creators Valve Inc., and Korean company PUBG Corp. behind hit shooter “PlayerUnknown’s Battlegrounds”.

Part of what’s driving the issue is the failure of the Xbox One to the PlayStation 4 this console generation. Analysts indicate over 73 million PS4’s have been sold to date, more than double the 35 million Xbox One’s sold. The recently launched ‘Xbox One X’ sold well out of the gate but isn’t doing the kind of numbers that can close the gap – not until a price drop happens (and Microsoft is currently losing money on each of those consoles sold). Both consoles are also being outsold by the Nintendo Switch.

There’s an obvious reason for this though – exclusives. Sony and Nintendo have them, Microsoft don’t. In the next year or so PS4 is expected to serve up the AAA likes of “The Last of Us Part 2,” “Spider-Man,” God of War,” “Days Gone,” “Detroit: Become Human,” “Yakuza 6,” the “Shadow of the Colossus” remaster and possibly “Death Stranding” with those titles ONLY coming to PS4 and nowhere else.

In contrast, Xbox One has only three – “State of Decay 2,” “Crackdown 3” and “Sea of Thieves” with each of those (like all future Xbox games) also to be available on PC. The article’s analysts say Microsoft recognises this is a big issue and investing more in delivering first-party content is going to be a big thing for them. Additionally Microsoft CEO Satya Nadella is reportedly more enthusiastic about games and Xbox than his predecessor, Steve Ballmer.

The company reportedly had a great year in 2017, but that success was “nothing to do with the Xbox One” says one analyst and the company “needs to explain a strategy for how they can be relevant going forward in the game industry.”

Electronic Arts meanwhile is coming off a rough year. The loot boxes and microtransactions mess surrounding “Star Wars: Battlefront II,” and the company’s stated dislike of single player campaign games because they can’t monetise them like multiplayer titles, has not only resulted in a ton of bad PR but has shaken the foundations of those ancillary revenue streams as a player revolt against the tactic.

Their mishandling of the “Mass Effect,” “Mirror’s Edge” and “Dead Space” franchises in a way that has effectively killed them also did them no favours – leaving them with little more than sporting titles, “The Sims,” “Need for Speed” and “Battlefield” games. A lot is riding on their early 2019 title “Anthem” to deliver.


http://www.darkhorizons.com/microsoft-interested-in-buying-electronic-arts/
 
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