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Publications Weigh In On Microsoft’s Acquisition Of EA Rumors

Electronic Arts.Eliot Lash/Wikimedia

Recently, rumors started circulating that Microsoft was going to use its sizable war chest to make an acquisition that could bolster its Xbox One lineup of games. One of the companies brought up to be on the list is EA, which itself is a major entity. Publications have started weighing in on the matter, with some saying that it was possible while others saying that it would make no sense.

On the side of the bandwagon saying an EA acquisition would be pointless for Microsoft is Forbes. Apparently, there’s the simple matter of publishers making more money off the PlayStation 4 than the Xbox One. At least, this is what Wedbush analyst Michael Pachter told the publication.

“The reason Microsoft would have trouble buying a publisher is that the publishers make more money on the PlayStation platform than on the Microsoft platform,” Pachter told Forbes. “At best, a purchase of EA would allow them to capture 60% of net income, and likely far less, so it wouldn’t pencil out financially. This might have made sense back in 2001 (when Xbox launched), but at these prices, it’s hard to justify. Also, keep in mind that more than half of EA revenue is licensed, so Disney and FIFA might not be happy if sales of their games were cut in half.”

With a lot of outlets seemingly fixated on the EA prospect, however, Polygon notes that there are actually other options that are available to Microsoft. Among the top choices would be Ubisoft, Valve, PUBG Corp., and Bethesda.

At this point, it hasn’t even been confirmed that Microsoft is actually going to make a purchase. The only thing that has been made official is that the company has the capability to do so.

What really matters now is that the Xbox division is facing shortages in appealing video game prospects. By acquiring a known publishing company, Microsoft could supplement this deficiency and start attracting gamers again.

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