UPDATE:Microsoft interested in purchasing EA?

If this turns out to be true this deal could be one of those industry defining moments not seen since Sega dropped out of the hardware business.

There has been talk around Wall Street about a potential buyout, but has been dismissed as “unsubstantiated chatter” by Reuters. However, that hasn’t stopped traders from driving up the stock of each company. As of this writing EA’s stock is up 5.24% to $19.36. Microsoft’s increase is a little more modest, rising 0.9% to $26.

What would bring on such a drastic move? With a global recession in full effect, the videogame industry has seen its largest sales drop in nine years. That could potentially leave EA in a vulnerable state.

Electronic Arts owns about 20% of the game publishing market and Microsoft 35% of the hardware, this deal, if it happens, could leave all competitors’ out in the cold. Definitely check back as we’ll have more on this story as it develops.

UPDATE: Microsoft has made an official statement regarding the possible Deal to End All Deals. When asked by a Joystiq blogger a representative responded with,  “Microsoft has no plans to purchase Electronic Arts.”

So there you have it. It looks like Armageddon has been avoided for at least one more day.

Article from Gamersyndrome.com

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6 Comments - Write a Comment

  1. Hopefully they’ll put an end to “Same Crap Different Year 2006/2007/2008/2009” if they do, EA has franchises other than sports. XD

    There have been a lot of buyouts and mergers the last few days, I wonder what’s going on in the gaming industry. Maybe they’ve realized that they shouldn’t be at each others throats all the time.

  2. From the moment I saw this I knew that it was just another rumour.

    EA aren’t struggling, I would say “not struggling at all”, but I know that isn’t ENTIRELY true.

    And yeah, the “Fifa 07” “Fifa 08” etc.. is quite annoying, but I don’t think you can give a better name for a game that works like that.

  3. No I wouldn’t say they’re on the ropes, but with a powerhouse like EA, and the amount of IP’s they possess, they aren’t used to losing money on a consistent basis like they have been.

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