This morning there were rumors that Amazon is going to make Electronic Arts an offer it can’t refuse. That is, Jeff Bezos’ company, which has been trying to build its own game business for about ten years, is going to buy EA. Bloomberg and CNBC later denied the information. EA shares fell, but have already played this fall.
On the other hand, there is no smoke without fire. Amazon has really been struggling with its own game business for more than ten years in vain, spending crazy money on it. According to calculations of Bloomberg about $500 million a year. And so far, only the MMORPG New World is worth showing off, everything else turned out either badly or very badly. Neither the hiring of famous game designers, nor the latest engine, nor advanced network architecture helps. Amazon just doesn’t know how to develop games.
But EA knows how, although the company is also suffering from not very successful releases in recent years. Battlefield 2042 turned out to be a disaster, Grid Legends – a complete failure (in general, the purchase of Codemasters in February 2021 was a complete mistake). But Electronic Arts has a lot of good studios that know how to create hits, and maybe that’s what Amazon needs to finally get its own game business.
On the other hand, is EA going to sell? The flop of two games is a pittance against the money that the FIFA series, Madden NFL, and other annual sports releases bring in. What’s more, in 2021, Electronic Arts bought quite well, acquiring Codemasters, Glu Mobile, Metalhead Software and Playdemic for more than $5 billion.
So, is Amazon going to buy Electronic Arts or not? Who knows, but let’s repeat, there is no smoke without fire. So let’s keep an eye on the events of the next weeks.
And do you think the sale of Electronic Arts is good news or not?