EA has a rather nasty habit of buying studios and running them into the ground. A fairly recent example of this would be Burnout developers Criterion, who quickly fizzled out after being put on Need for Speed duty. EA regularly buys talent instead of nurturing it from within – but that’s going to change.
EA has revealed that it will stop the acquisition of other studios and instead focus on building new ones from within the company. Chief financial officer Blake Jorgensen explains that the publisher only saw “marginal” gains from its acquisitions over the past decade, which included massive names such as PopCap and BioWare.
“I think our history with acquisitions is somewhat marginal in performance We have some that are spectacular, and some that didn’t do so well. It’s a headcount business, right? You’re buying headcount, and that’s always difficult to manage in acquisitions. It doesn’t mean we won’t do them, but I think where e’ve been most successful is in smaller acquisitions that we’ve integrated very quickly.”
It’s easy to look over at BioWare and wonder what Jorgensen is actually on about, but EA has it’s reputation for a reason. They’ve acquired a major studio nearly annually for the past 20 years, leaving little space for growth within the company itself. That’s where this shift is coming into play.
“We’ve got great opportunities inside our organization. We’ve built a really strong bench of talent at all levels, and our view is to find great ideas, either through our own development or through licensed IP, and leverage your talent base to try to build that.”
It’s sounds like a much better strategy from EA, and one I am eager to watch play out. A stronger focus on internal growth and development pairs nicely with stringent existing IP, letting the people who know the most about a game actually work on it.
Last Updated: December 4, 2014
Kensei Seraph - 6 more days
December 4, 2014 at 14:04
2 exams down, 3 to go.
Nikola
December 4, 2014 at 14:06
EA my favorite game company by far;)
Captain JJ the fair
December 4, 2014 at 14:17
You can have my like because I just agree with you so so much.
;P
Hammersteyn
December 4, 2014 at 14:18
And Eskom is your favourite Utility ?
Kensei Seraph - 6 more days
December 4, 2014 at 14:19
Telkom would be a close second.
Nikola
December 4, 2014 at 14:19
You know me so well:))) haha
Captain JJ the fair
December 4, 2014 at 14:23
Thinking of Eskom makes me hot, very unlike my stove last night when the power was out.
Rock789
December 4, 2014 at 14:56
Don’t get me started… Bloody Eskom!!! Only service provider I can think of IN THE WORLD that doesn’t provide the service they are paid for!
**starts turning green with rage**
Raptor Rants A Lot
December 4, 2014 at 15:01
I could rant about them for hours except the power won’t stay on long enough to post the comment
Dimi Gronnings
December 6, 2014 at 00:24
Get a gas stove. It’s made the rolling blackouts bearable for me. Now I just have to buy a laptop again so I can actually work while the power’s out.
Ryanza
December 4, 2014 at 14:07
What would happen if EA bought CD Projekt RED? I wonder if Poland would go to war.
Don’t Support DRM. The Witcher 3 is coming.
Kensei Seraph - 6 more days
December 4, 2014 at 14:11
Gamers would probably go to war.
RinceThis
December 4, 2014 at 14:29
GG?
Ryanza
December 4, 2014 at 14:59
#GeraltGate
Raptor Rants A Lot
December 4, 2014 at 15:11
GamerGate? They are already at war aren’t they?
RinceThis
December 4, 2014 at 15:32
That’s what I meant 🙂
Raptor Rants A Lot
December 4, 2014 at 15:52
lol
Captain JJ the fair
December 4, 2014 at 14:18
They wouldn’t sell out to EA. That’s an insult to CDPR, damn it.
Ryanza
December 4, 2014 at 14:28
You never know. The power of money and the price of your soul.
CD Projekt Red of got 2 games out and they pretty popular. Add The Witcher 3 and Cyberpunk 2077, they might take over the gaming world. EA could want that for themselves.
RustedFaith
December 4, 2014 at 14:30
CD Project Red have a insane amount of cash from GOG they don’t need investors. That’s the reason why they can make games on their terms.
Kensei Seraph - 6 more days
December 4, 2014 at 14:09
Sounds to me they’ll simply be moving people from one team to another or even just renaming an existing team.
One of the [possible] reason for their acquisitions doing so poorly is that EA force the “deliver early, charge blood, never fix” onto studios that previously took their time to ensure a proper, polished product was delivered at a reasonable price.
Captain JJ the fair
December 4, 2014 at 14:16
Good, now they can focus on sorting themselves out.
CAE9872
December 4, 2014 at 14:17
As a business-type I cannot for the life of me understanding why you would buy something successful and allow it to simply whither into dust. It makes no logical sense at all.
And if you after one or two people then maybe. But on the scale EA does it; can only be pure and utter mismanagement.
Alien Emperor Trevor
December 4, 2014 at 14:20
Because they will show you how to run your already successful business better because they’re obviously already better at it than you because they’re bigger than you and bought you out and you’re an ignorant little business.
Gosh, where’d that come from? Am I still talking about EA? O_o
CAE9872
December 4, 2014 at 14:22
LOL
Kensei Seraph - 6 more days
December 4, 2014 at 14:21
It’s to eliminate the competition.
Pure, simple and (as you said) horribly mismanaged into stupidity.
CAE9872
December 4, 2014 at 14:24
Maybe…and that’s a big maybe. At some point though, if you spend millions you want the returns associated with it. Otherwise you wouldn’t usually buy a company because they don’t pose a major threat.
It happens of course, but a lot less than people may think. You still need returns at some point.
RustedFaith
December 4, 2014 at 14:31
Market share …
CAE9872
December 4, 2014 at 14:43
Yes and no – its a very short term mindset though because again, if they don’t produce then no returns down the line.
Hammersteyn
December 4, 2014 at 14:19
For now………….
CAE9872
December 4, 2014 at 14:24
Hahaha yeah that’s what I thought – maybe they mean for rest of 2014.
Gareth L (That eXCheez Guy)
December 4, 2014 at 14:23
Uh, yeah because there’s no one else worth buying.
RIP Westwood and Bullfrog.
Captain JJ the fair
December 4, 2014 at 14:24
*bows in memory of Westwood and Bullfrog
RustedFaith
December 4, 2014 at 14:32
dont forget Origin … Been sitting on the Wing Commander, Strike Commander, Ultima, Crusader IP since the 90’s and still dont know what to do with it.
WitWolfy
December 5, 2014 at 07:29
Wing Commander?!?! *RRRRRRRRRAAAAAAAAAAGGGGGGGGGGEEEEEEEEE*
RinceThis
December 4, 2014 at 14:36
Sigh…
Dutch Matrix
December 4, 2014 at 14:50
I just hate how EA ruined the Sims a bit this time around. I wonder if Will Wright looks at the Sims 4 and feels content with the shell of a game we got?
It honestly feels like I am playing a free to play game without the free to play price tag…
Rock789
December 4, 2014 at 14:55
EA – keep supplying me with games like “Dragon Age: Inquisition” and I’ll be all for this!! 🙂
Kafka Dev
December 6, 2014 at 02:03
They’re upset over that too but don’t worry they’ll mess up the next one or heads will roll.
Raptor Rants A Lot
December 4, 2014 at 14:55
lol
WitWolfy
December 5, 2014 at 07:28
So they claim Popcap was the last?? I’ll believe it when I see it.