Sony could respond to Microsoft's acquisition of Activision Blizzard by purchasing EA

Shawn Knight

Posts: 14,131   +154
Staff member
Bottom line: The gaming landscape has been shaken to its core, and we’re not even a full month into 2022. More deals could be in the pipeline, but regulators' response to Microsoft's buyout of Activision Blizzard will likely play a big role in determining when or if they happen.

Take-Two Interactive got things going with its $12.7 billion acquisition of Zynga, but it was Microsoft that really stirred the pot with its $68.7 billion offer to purchase Activision Blizzard.

Regarding the Microsoft deal, many have questioned how Sony and others might respond.

Analysts at Enders Analysis believe that if Sony wants to hop aboard the merger and acquisition bandwagon, its best bet might be a buyout of Electronic Arts. With a current market cap of around $37 billion, however, it’d be far more affordable for Sony to go after lower value targets like Take-Two or Ubisoft, which are valued at $18.33 billion and $6.9 billion, respectively.

MKM Partners analyst Eric Handler, meanwhile, seems to think Disney might be interested in a run at EA. “A great way for Disney to build upon its digital future and for Bob Chapek to step outside Bob Iger’s shadow would be to buy EA,” Handler said.

Other players have also emerged as of late that could make a serious run in the gaming industry such as Netflix. COO Greg Peters recently said the streaming giant was focused on creating games based on franchises it already owns like Stranger Things but was also open to the possibility of licensing large game IP that people would recognize.

It's still very early days for Microsoft's buyout of Activision Blizzard. Regulators could get involved, and that might dictate how other big companies decide to proceed.

Image credit: JeShoots, cottonbro

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yRaz

Posts: 4,405   +5,135
I look forward to billion dollar corporations fighting over garbage developers. While both companies are still profitable(Activision and EA), they only put out garbage games.

Buy them and separate the player base. Maybe we'll all benefit by the profitablity dropping and their business practices disappearing.
 

SiJiL

Posts: 9   +8
"Sony could respond to Microsoft's acquisition of Activision Blizzard by purchasing EA" suggests that Sony have voiced some sort of even vague hint that someone there is considering looking into it...

"Analysts at Enders Analysis believe that if Sony wants to hop aboard the merger and acquisition bandwagon, its best bet might be a buyout of Electronic Arts." is not that. Not even slightly.
 

Nobina

Posts: 3,775   +4,197
MS got one good franchise, Call of Duty. Sony could get FIFA which is also really popular, NBA as well. Maybe it's not so bad.
 

Rayneofpayne

Posts: 502   +415
MS got one good franchise, Call of Duty. Sony could get FIFA which is also really popular, NBA as well. Maybe it's not so bad.
Uhm Blizzards properties have made billions, sports games and the serial war games are trash. While those games have been trash due to bad management, they are still worth more than Call of Duty, people like to forget Diablo 3 had the largest PC preorder in history, I mean it was still trash compared to it's forbearers. But Blizzard fans have always been loyal to the properties more so than any of the war type games Sports games are just as rabid but they were yeah when EA just wanted mobile games on console with Magic the gathering level of digital goods.
 

Sausagemeat

Posts: 1,597   +1,421
EA make garbage games but they do have a very strong effect on sales with their sports games. In the U.K. at least there are dozens of people who buy consoles exclusively to play FIFA. If FIFA and all the other popular EA sports games became PS exclusives that could make quite a big difference to sales numbers. And Sony are ruthless, they would absolutely cut Xbox off as soon as they can.

Although in all fairness I think Microsoft are being stupid for allowing it’s games to proceed with releasing on the PlayStation. I like that they do it but from a business point of view it’s bizarre, they are generating profit for their direct competitor.
 
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Mithan

Posts: 131   +146
EA would be a good buy, but it would take years to restructure and get rid of the morons running the company now and redevelop their IP back to what it used to be. They also have a HUGE back log of amazing IP's that could come back in some form, like Wing Commander, Ultima, Magic Carpet, etc. Recreated for the new age.

Take Two would be solid too I think.

Square or FromSoftware would also be good buys.
 

Bl00dyMinded

Posts: 478   +726
Uhm Blizzards properties have made billions, sports games and the serial war games are trash. While those games have been trash due to bad management, they are still worth more than Call of Duty, people like to forget Diablo 3 had the largest PC preorder in history, I mean it was still trash compared to it's forbearers. But Blizzard fans have always been loyal to the properties more so than any of the war type games Sports games are just as rabid but they were yeah when EA just wanted mobile games on console with Magic the gathering level of digital goods.
Us blizzard fans were loyal to Blizzard. The day they got bought by Activision I stopped caring completely for anything so called Blizzard put out. As you mentioned Diablo 3 was the last blizzard game I bought.
 

Dimitriid

Posts: 2,204   +4,242
Honestly...I think Sony should actually pick another lane altogether: Buy Capcom and Square before Microsoft can. Stick with the Japanese market and creators instead of trying to go Dollar vs Dollar with Microsoft because guess what? They're going to lose that battle, even if they manage to buy EA because I honestly don't think EA is going to counteract Activision + Bethesda combined so it's a losing battle.
 

Lounds

Posts: 1,120   +1,018
Honestly...I think Sony should actually pick another lane altogether: Buy Capcom and Square before Microsoft can. Stick with the Japanese market and creators instead of trying to go Dollar vs Dollar with Microsoft because guess what? They're going to lose that battle, even if they manage to buy EA because I honestly don't think EA is going to counteract Activision + Bethesda combined so it's a losing battle.
I think this is more realistic. Also From Software.
 

Squid Surprise

Posts: 5,335   +4,980
MS got one good franchise, Call of Duty. Sony could get FIFA which is also really popular, NBA as well. Maybe it's not so bad.
EA has tons of great IP... They have the gaming rights to Star Wars, which is a cash cow no matter how crappy a game you put out under it - which is probably why it would make sense for Disney to buy them...

Madden sells crazy amounts of copies as well... and NHL is totally sweet :)
 

yRaz

Posts: 4,405   +5,135
EA has tons of great IP... They have the gaming rights to Star Wars, which is a cash cow no matter how crappy a game you put out under it - which is probably why it would make sense for Disney to buy them...

Madden sells crazy amounts of copies as well... and NHL is totally sweet :)
EA might actually lose its rights to their sports franchises. I believe it started with FIFA, but the people who license out the name for it are very displeased with the trading card/microtransaction model that EA has made with sports games. The NFL and NHL are also displeased with it. There could very quickly be a cascade effect where EA loses all the rights to sports franchises because of how greedy they've become.
 

Kosmoz

Posts: 600   +1,110
The only recent game I liked from EA was Star Wars Jedi: Fallen Order.
The F1 2021 game (and it's series) is also decent if you like those kind of racing games.

I don't think Sony will buy EA, it's too expensive and has too many issues... although maybe not so many as Acti-Blizz maybe?
 

BigRedPDX

Posts: 271   +191
Sony won't gain much by owning EA. Ubisoft would be a better deal for them financially and I enjoy my Far Cry games. I've been playing those since day 1. I haven't bought a Microsoft product in a very long time. Maybe it's some sort of bias that I have against them since I need to fix their buggy operating systems daily. Could be the 360 red ring of death that I fixed on multiple consoles? Maybe it's the monopoly they are trying to get away with again?
 

Edster

Posts: 117   +87
The Xbox fanboys gloating about Activision/Blizzard will now suddenly hate studio acquisitions now that Sony is wanting to do it too. Just as I hate the fact MS acquired A/B, I will loathe to see Sony acquire EA, or any other major game developer. This is just going to be an arms race of who will acquire the best studios. And to what end? More exclusivity, or behaviors designed to lock you into their eco-system. Definitely not looking forward to the Sony fanboys gloat whatever they are going acquire.

I don't know, I just never am a supporter of giant company mergers, just reeks of anti-competitive behavior. Like, are we going to see better CoD or FIFA games because they were acquired? Most likely not. At best we are going to get half baked release of old IPs, because the industry right now is devoid of inspiration and originality. Just look at 2021, apart from indie games, of which there are many good ones, the releases from big studios are mostly pathetic or just another sequel.
 

texasrattler

Posts: 1,288   +614
EA make garbage games but they do have a very strong effect on sales with their sports games. In the U.K. at least there are dozens of people who buy consoles exclusively to play FIFFA. If FIFA and all the other popular EA sports games became PS exclusives that could make quite a big difference to sales numbers. And Sony are ruthless, they would absolutely cut Xbox off as soon as they can.

Although in all fairness I think Microsoft are being stupid for allowing it’s games to proceed with releasing on the PlayStation. I like that they do it but from a business point of view it’s bizarre, they are generating profit for their direct competitor.
They can't just cut off a competitor. Regulators and regulation won't allow that. It's why MS has said Sony won't be affected at all or any time soon by them buying out Activision.
Sure changes may come but that doesn't mean Sony will be losing out. Xbox may have a exclusivity when the game or content launches but that's about it. Sony will still get the game.
 

m4a4

Posts: 2,891   +3,701
TechSpot Elite
Eh, I'd like this move even less than the MS/Blizz acquisition (if it's even on the table).

At least MS is supporting PC gaming, Sony is barely doing that...
 

Sausagemeat

Posts: 1,597   +1,421
They can't just cut off a competitor. Regulators and regulation won't allow that. It's why MS has said Sony won't be affected at all or any time soon by them buying out Activision.
Sure changes may come but that doesn't mean Sony will be losing out. Xbox may have a exclusivity when the game or content launches but that's about it. Sony will still get the game.
I don’t agree. If Sony can have exclusives I don’t see why Microsoft can’t. Especially as Sony is the bigger player here. There may be pre existing contractual agreements to release games already in development but it’s likely that these have a get out of some kind. Sony can’t make anyone sign a contract to guarantee games.

Besides, MS already pulled the elder scrolls off the PlayStation after they acquired Bethesda.

I think we will see similar, my belief is they will release this years Activision titles but after that it will go exclusive to Xbox. I just can’t see how the execs at MS would be happy releasing software they developed and own ok a competitors platform.
 

DrewTheBrave

Posts: 18   +18
I could be wrong but doesn't that deal end soon? Like next year or something?

Correct. As of 2023 EA no longer has exclusive rights to Star Wars. There are a lot of games currently in development outside of EA that are planned for 2023+ release.
 

BigRedPDX

Posts: 271   +191
Eh, I'd like this move even less than the MS/Blizz acquisition (if it's even on the table).

At least MS is supporting PC gaming, Sony is barely doing that...
Maybe once Sony creates an operating system beyond the one for their console? That would mean that Sony would have work with Microsoft to allow PC gaming. The best they have is the PS remote play... which I may or may not be using from work right now...
 

Shaitan

Posts: 175   +197
Activision/Microsoft:
I'd buy a Microsoft console ONLY if it supported Starcraft II or whatever Starcraft new game(s) they decide to come up with for it... but not gonna happen, probably they'll go for some crappy mobile games.
EA Games/Sony: except for a post-launch Jedi Fallen Order II (after it's only 50% of the pre-launch price) and maybe C&C Generals II or a remake of Red Alert II, there's absolutely nothing remotely interesting.
Just looking forward to seeing Witcher 4 (if it doesn't become some woke garbage), Cyberpunk's next DLC, and some indie games.
Considering the awful state of gaming currently, there's absolutely no incentive for me whatsoever to buy any new AAA game. The HW requirements are huge, the gameplay is nowadays only about representation and diversity instead of fun, and the MTX/skins are present even for a game that costs 70 Euro for pre-order.
No, thanks, not for me.
If they want to lose billions with these mergers, Ok, fine with me. But I won't pay a dime for the new consoles and definitely won't support either Activision or EA's business model.
Let's see: how would you make me pay for some sh1t remake, when Warcraft III Reforged, Diablo II Resurrected, Battlefield 2042, and the last two CoD were absolute trash?
Yeah. exactly. I'd rather buy Nintendo consoles if I really needed some. Which I don't.
 

m4a4

Posts: 2,891   +3,701
TechSpot Elite
Maybe once Sony creates an operating system beyond the one for their console? That would mean that Sony would have work with Microsoft to allow PC gaming. The best they have is the PS remote play... which I may or may not be using from work right now...
Windows is an open platform (no money goes to MS for selling games on it). Sony doesn't need their own OS. They could do their own store, but some PC gamers wouldn't like that (more fragmentation).

PS remote play requires a PS4/5, don't think that counts lol