a much bigger fish?

[Radja]

i think many people are over-emphasizing EA's supposed fear of VC. while i felt that way at first, the amount of money spent and how quick they are making these purchases gives rise for a much bigger picture. a few years back, investor were gobbling up cable companies for the potential for high speed internet. they couldnt buy them fast enough. EA is after much bigger fish than VC. Sony? Microsoft?

there has been talk of ea making its own console and the amount of money they are throwing around gives reason to believe it is so. they are not only buying sports interests, they are buying other companies around the world. they undoubtedly have investers with huge pockets who are footing the bill for an even larger payday, imho.

for instance, there are other licenses take two could get. fox sports might not mind having their own video games if they were done right. so this is just a "potentially" devastating body blow to take two. EA knows this. VC doesnt need espn. it could just as easily change the color and logos to Fox Sports and we would be none the wiser.

if these purchases were solely to wipe out VC, ea could have waited only a mere 9 monthes to see if the NFL license exclusive simply did their dirty work for them. and if not, bought some more exclusive deals.

madden only makes up 10% of their revenue. while that is a large amount, add in the combined other revenue from ncaa, nba, nhl, mlb and the amount spent on exlcusive licenses so far, and the net profit is likely minimal. they are not doing this solely to wipe out VC.

if they make thier own console, they would have many popular franchises under their banner including quite a few sports licenses. either way, they would hold the cards and the investors walk away even wealthier men.

if they arent to make a console of their own, since they have exclusives sports licenses to everything, they are in the process of purchasing some major competition world wide, they can hold the console developers at ransom charging whatever extra fees they want for gracing thier console and the investors walk away even wealthier men.

[Zinthar]

I wouldn't put such a thing past EA, but that would be the stupidest thing they could possibly do. Microsoft or Sega would buy or get exclusive support from Take Two and when that NFL license comes up for bidding again in 4 years or so EA would find that Microsoft has $40 billion+ to throw around.

[Victory]

Microsoft as a company is currently worth about 20 times as much as EA. Sony is worth about twice as much. Buying the companies is pretty much out of the question. Getting them to sell the console division by overpaying might be possible but I doubt thats what they would do. I think what might happen though is EA using the leverage they have from being the onlt NFL game to get themselves on the other end of one of these exclusive deals. That would be just awful.

[zappa55]

I hope EA does make a console and gets Microsoft's attention this way when EA's licsenses are up Microsoft can get in there and compete.

[Braylon]

If EA signed an exclusive deal with Microsoft to only support the XBox3, that would kill Sony's PS3 console and put quite a dent into an already-reeling Nintendo.

[Radja]

Quote: Originally Posted by Victory

Microsoft as a company is currently worth about 20 times as much as EA. Sony is worth about twice as much. Buying the companies is pretty much out of the question. Getting them to sell the console division by overpaying might be possible but I doubt thats what they would do. I think what might happen though is EA using the leverage they have from being the onlt NFL game to get themselves on the other end of one of these exclusive deals. That would be just awful.

i dont believe EA wants to buy either company. but they do want the console market to be theirs. depending on what stance EA decides for the future could test how much either company wants to invest in this market.