News
 

Bookmark and Share

(0) 

Microsoft Corp. on Thursday said it had no intentions to acquire Electronic Arts, a leading video game publisher. While the acquisition would allow Microsoft to grab numerous game franchises and make them exclusive for Xbox 360 and Windows-based personal computers, the deal would hardly provide adequate return on investment.

“We have no plans to acquire EA. They remain a very important partner to us. No acquisitions,” said Phil Spencer, corporate vice president of Microsoft Game Studios, in an interview with Reuters news-agency. 

At press time market capitalization of Electronic Arts was $6.24 billion, which is a lot of money even for the world’s largest maker of software. The main reason behind success of Electronic Arts is very diverse portfolio of video games that are aimed at numerous game consoles as well as personal computers.

In case Microsoft acquires Electronic Arts, it will have to axe games for platforms like Sony PlayStation or Nintendo Wii in order to give Xbox 360 and Windows PC platforms advantages over competing systems. Nevertheless, dropping game development for competing systems will naturally reduce revenue of Electronic Arts dramatically. It is at least strange to buy a game publisher with the aim to reduce its earnings.

There are numerous media companies that may really be interested in acquiring a video game publisher. According to numerous reports, Time Warner, Viacom and Walt Disney are paying a lot of attention on the game industry.

“We do think that both Time Warner and Viacom are interested in the gaming space. While we won't be surprised by an offer for THQ, we believe that Take-Two Interactive Software could be a better take-out candidate,” said ThinkEquity analyst Atul Bagga, reports the Wall Street Journal.

Tags: Microsoft, Electronic Arts, Take Two Interactive, THQ, Xbox

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Thursday, August 28, 2014

12:22 pm | AMD Has No Plans to Reconsider Recommended Prices of Radeon R9 Graphics Cards. AMD Will Not Lower Recommended Prices of Radeon R9 Graphics Solutions

Wednesday, August 27, 2014

9:09 pm | Samsung Begins to Produce 2.13GHz 64GB DDR4 Memory Modules. Samsung Uses TSV DRAMs for 64GB DDR4 RDIMMs

Tuesday, August 26, 2014

6:41 pm | AMD Quietly Reveals Third Iteration of GCN Architecture with Tonga GPU. AMD Unleashes Radeon R9 285 Graphics Cards, Tonga GPU, GCN 1.2 Architecture

Monday, August 25, 2014

6:05 pm | Chinese Inspur to Sell Mission-Critical Servers with AMD Software, Power 8 Processors. IBM to Enter Chinese Big Data Market with the Help from Inspur

Sunday, August 24, 2014

6:12 pm | Former X-Bit Labs Editor Aims to Wed Tabletop Games with Mobile Platforms. Game Master Wants to Become a New World of Warcraft