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Electronic Arts, Inc (ERTS)
First Take-Two, next EA's own console?
First Take-Two, next EA's own console?
VideoGamer.com - March 3, 2008
Submitted by llonesmiz (508) at 9:01AM PST on March 4, 2008
Some commentators have started to look past what many feel is the inevitable takeover of Take-Two and begun to predict what might be next for EA's collective. Ubisoft has been mooted, as has SCi. I would say this - don't discount an even more surprising, and more exciting, move - the announcement of an EA console.
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2zukaus posted on Electronic Arts, Inc (ERTS) at 3:44PM PST on March 4, 2008. RE: First Take-Two, next EA's own console?I believe this would be a ridiculous move by EA and frankly it would near impossible for them to do. A company almost 17 times bigger and with more than 5 times the cash named Microsoft has spent the last 6 years trying to break into this market and they have only had 2 or 3 profitable quarters in the the entire lifespan of the Xbox and the Xbox 360.
For EA to even have a hope of success they would have to fully support their own console and immediately cut their support for every other competing console out there. They would also have to somehow convince their former rivals to start developing on the new EA console, something I doubt they would be willing to do. EA would stand to lose billions of their current revenue while at the same time spending further billions in development of their own console with absolutely zero guarantee of any of it back. Even if they were to somehow succeed there is no guarantee that they would make as much as they do right now. They would be risking everything for very little to possibly gain. Unless the videogames industry dramatically shifts to some different model an EA console is not going to happen. This is a gamble that no company would take.[ Oracle ] [ Level 30 ] [ Rank: 4 ]bids
1Just_Ben posted on Electronic Arts, Inc (ERTS) at 2:49PM PST on March 4, 2008. RE: First Take-Two, next EA's own console?@vGInfidel,
That would also an possibility EA could do. I think the author of the article has at least on thing right: Expect the unexpected from EA right now. The new "chief" is forming a new EA. Titles can be delayed so they can be polished (Army of Two). Developers that get bought right know keep more independence than before, so they can be "creative". He is changing the company in some way and it is interesting to watch where it will end.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
0vGInfidel posted on Electronic Arts, Inc (ERTS) at 12:15PM PST on March 4, 2008. RE: First Take-Two, next EA's own console?@Just_Ben,
if EA really go on a spree of trying to buy up independant developers dont be suprised to see MS, Sony, Ninentendo do something along the same lines, especially with their second party developers to try and combat it. otherwise as soon as EA buys them their titles go multiplatform and they lose their exclusivity.
i think it'd be more likely that EA signs an exclusivity deal of some sort with MS or Sony which gives them MS/Sony's share on each game (the $10 ben suggested) than they release their own console. they dont have to spend the money on r+d and its not that big of a risk. signing an exlusivity deal will significantly boost sales of either system and rather rapidly so they wont lose too much on cross platform sales. what they do lose will be made up in the short term by MS/Sony's share theyre getting which will eventually develop into significant profit.
im guessing here as obviously i dont know the exact figures involved but i bet it isnt something the bosses at EA havent thought about.[ Oracle ] [ Level 22 ] [ Rank: 150 ]bids
0Just_Ben posted on Electronic Arts, Inc (ERTS) at 11:31AM PST on March 4, 2008. RE: First Take-Two, next EA's own console?@ItachiItachi,
True, and I doesn't say they won't do it. The new chef of EA is somebody that could do such a risky move.
You laid down some risk, Laoldar also layed down some risk (Multiplatform sales). May I add another one: An EA console would be a power house. A 360/PS3 kind of console. So they would compete with 2 relatively similar consoles. And both of them are "loosing" the console war right know. Another downside is you can't survive without 3rd party support. The question is what would other 3rd party do. And what about Japan, EA success there is only mediacore..
But there is also an upside:
How many games does EA sell in one year? Just on the Xbox? 10 Million, 20, 30? I am to lazy to look it up, but its a lot. More than MS does. Multiply that with 10$, because that should be a rough figure for the share MS/Sony/Nintendo is getting for those. It is a hell lot of money.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
2Laoldar posted on Electronic Arts, Inc (ERTS) at 10:51AM PST on March 4, 2008. RE: First Take-Two, next EA's own console?@llonesmiz,
Maybe they can call it the 3DO...oh wait...
EA makes a fortune by being multi-platform...there's absolutely no incentive to spend billions on developing their own console to compete in a crowded market.
Also, EA's sports exclusivity agreements would end pretty quick if they only put out titles on one system.[ Oracle ] [ Level 21 ] [ Rank: 182 ]bids
1ItachiItachi posted on Electronic Arts, Inc (ERTS) at 10:02AM PST on March 4, 2008. RE: First Take-Two, next EA's own console?@Just_Ben,I'm sure if they wanted to make there own console, the version of Madden for the EA console would be better than the other versions, and if the had GTA that would be a pretty good selling point. But I don't see the point of it. They already have a monopoly on the sports game market, and if they get GTA the console makers are going to court them more than ever. Risking this to make a console(which seems to lose usually lose money) dosen't make much business sense.[ Oracle ] [ Level 19 ] [ Rank: 463 ]bids
1Just_Ben posted on Electronic Arts, Inc (ERTS) at 9:24AM PST on March 4, 2008. RE: First Take-Two, next EA's own console?@llonesmiz,
Well, I think the argument of the author is somewhat faulty;
I don't think they can make madden and other sports games exclusive to one console. Isn't part of the deal for the license (player names and such) to put it near on every console? Another game is Mass Effect. Doesn't hold MS some rights on the franchise? I think I heard something like that.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
21llonesmiz posted on Electronic Arts, Inc (ERTS) at 9:01AM PST on March 4, 2008. Article: First Take-Two, next EA's own console?Some commentators have started to look past what many feel is the inevitable takeover of Take-Two and begun to predict what might be next for EA's collective. Ubisoft has been mooted, as has SCi. I would say this - don't discount an even more surprising, and more exciting, move - the announcement of an EA console.[ Oracle ] [ Level 19 ] [ Rank: 508 ]
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Exactly!
Introducing a new console is expensive...much more so than 2 generations ago.
It makes zero sense for EA to make a new console. Why spend all of your cash to create a new platform when you can use it to design more games for the dominant ones? EA has been taking more chances with original IPs and I think we'll see them move more in that direction.