By Paul Tassi,Saudi Arabia,Senior Contributor
Copyright forbes
Mass Effect 3
In a record-setting $55 billion deal, Electronic Arts has been taken private, the move backed by Saudi Arabia’s Public Investment Fund, Jared Kushner’s (as in, Trump’s son-in-law) Affinity Partners and private equity firm Silver Lake. Now, fans want to know what that means for their games, and developers likely do as well.
The news was announced in conjunction with a statement from EA CEO Andrew Wilson, who is not going anywhere and will still lead the company.
“This moment is a powerful recognition of their remarkable work,” said Wilson in a statement. “Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
And here’s Jared Kushner, if you were curious:
“Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games - and now enjoys them with his kids – I couldn’t be more excited about what’s ahead.”
The initial reaction among the gaming community has been largely skeptical, with fans not exactly believing an EA owned by Saudi Arabia and Jared Kushner, still run by Andrew Wilson, is going to make things better for its games.
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One immediate aspect of note, as Bloomberg’s Jason Schreier points out, is that this deal is being financed with $20 billion worth of debt. So, the result here may not be a flood of new cash injected for mass hiring and big games, but cutting of costs, including employees and potentially entire games. None of that has been announced on day one here, of course, but it’s going to be important to keep in mind.
There are a number of spinning plates at EA already. BioWare recently released the drastically underperforming Dragon Age: The Veilguard, its third miss in a row, and has everything riding on a new Mass Effect game. If that doesn’t hit, and cuts are looming, that’s incredibly dangerous for them. Apex Legends is a big, ongoing shooter from EA, though it’s down to about a third of its peak players from some years back (though still a generally solid performer).
A big question is what will change with EA’s annual sports catalogue and enormous monetization pathways like Ultimate Team. EA has attempted to replicate those kinds of profits with other genres, and one potential outcome of this move and accruing that debt could be pushing that further in both these games and others. One theory, presented by Wedbush analyst Michael Pachter (via Kotaku) is that this move will come with a big push into mobile, where EA has not carved out a significant space. Apex Legends Mobile, for instance, was launched in 2022 and closed in 2023, tanking in players and revenue.
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EA has never been a terribly beloved company among gamers, thinking way back to when it won the Consumerist “Worst Company in America” award multiple times a decade or two ago, voted on by angry gamers annoyed about something or another at the time. That said, these days big brands rarely feel like anyone’s friends, especially as they’re hoovered up by even larger corporations. That’s not what’s happening here, but the effect feels similar.
It is just too early to know what exactly happens with specific EA games and franchises in the wake of this deal, but early signs point to potential cuts, not supercharged, immediate investment. The industry is leaning toward ongoing revenue, through either microtransactions or subscriptions, and activating both of those in the mobile space. Expect more of that and fewer Mass Effects, most likely.
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Herokiller series The Earthborn Trilogy.
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