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EA to buy 20% share in Ubisoft


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EA Invests in UbiSoft Entertainment

Monday December 20, 2:02 am ET

 

Acquires Approximately 19.9 Percent Equity in Global Game Company

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Dec. 20, 2004--Electronic Arts (Nasdaq:ERTS - News) today announced an investment in international game developer and publisher UbiSoft Entertainment, headquartered in Rennes, France. The investment represents approximately 19.9 percent interest in the company -- shares purchased as a block from Talpa Beheer B.V. to be completed upon obtaining antitrust clearance from the U.S. government. Financial terms were not disclosed.

About Electronic Arts

Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world's leading interactive entertainment software company. Founded in 1982, EA posted revenues of $2.96 billion for fiscal 2004. The company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers and the Internet. In 2003, EA had 27 titles that sold more than one million copies. Electronic Arts markets its products under three brand names: EA SPORTS, EA GAMES and EA SPORTS BIG. EA's homepage and online game site is www.ea.com. More information about EA's products and full text of press releases can be found on the Internet at http://info.ea.com.

--------------------------------------------------------------------------------

Contact:

     EA

     Jeff Brown, 650-628-7323

     (VP Corporate Communications)

     jbrown@ea.com

     Tiffany Steckler, +44 1932 450 703

     (Communications Director Europe)

     tsteckler@europe.ea.com

20% is certainly a controlling interest -- consider how this bodes for Ubi/RSE and games in general as game companies continue to conglomerate into media giants just like Hollywooden Movie Studios...

:blink:

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http://www.eurogamer.net/article.php?article_id=57452

EA to buy 20 per cent share in Ubisoft

by GamesIndustry.biz 

Electronic Arts is to buy 20 percent of French publisher Ubisoft, the Wall Street Journal has confirmed this morning, at a reported cost of between $85 million and $100 million.

Neither publisher has made comment on the matter.

The deal is subject to approval by US regulators, and has pointed towards further consolidation in the games publishing market. EA has had an aggressive year in terms of acquisition, the latest recipient of which was British developer Criterion Studios at an estimated long-term cost of $200 million.

Ubisoft has enjoyed channelled success in recent years following the acquisition of Red Storm Entertainment, holder of the Tom Clancy brand, and global hits with thrillers such as Splinter Cell and Ghost Recon. Critical acclaim has spread to Ubisoft's other high-flyers, in particular the remakes of Prince of Persia and Beyond Good & Evil - considered by some to be the Western equal of Nintendo's Zelda.

Ubisoft has steered clear of buyout talk up to this point, aside from president Yves Guillemot confirming notions of acquiring British stalwart Eidos at E3 in 2002.

The news could point to a serious shift in policy from EA, since CEO Larry Probst intimated at E3 this May that he didn't expect the firm to be making the moves as the industry coagulates.

"I'm not sure that it's going to be us acquiring other companies and I don't think that anyone's going to acquire us in the industry, but I think you're going to see consolidation in the next three to five years, where there are fewer competitors to us in five years than there are today," he said at the show.

:wall:

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This is not all bad; there is a silver lining -- though it may take time for it to show itself if at all. The bright side is through consolidation, greater control over differentiating products in the market can be had.

For example rather then watering down a Clancy Game to compete with an preexisting EA Action Realism title it's recognized these games could compete and should get very specific and exclusive treatment so they don't...

Unfortunately it looks like the Game Industry will have even larger and fewer 'giants' then the Movie Industry -- which for the long term means the equivalent of unimaginative Action Thrillers, and Romance Novels in the Movie and Book Publishing industry...

It also may mean that the Independents will get more and faster recognition, as people wear out of POP XXXIV and Ghost Recon: Speed Demon Assault...

:huh:

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Uhm, EA doesn't HAVE any realistic titles, unless you count their sports games, but that is a whole other ball park.

The only combat games I can remember från EA's catalogue would be the Medal of Honor series which are far from realistic.

The way I see it we have to look to the smaller more commited developers for realistic games, companies that think about other things than revenue alone...

Edited by simulacra
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Well, EA does have the BF1942 line going for them. (in addition to MOH)

Both are sucessfull franchises I guess.

I wouldn't put too much faith in these two companies really trying to merge ideas and games though. Like any large company, even after mergers, the "old comapny" lines are still drawn in the sand, and take a while to blend.

3-4 years down the road, maybe the combined company will have enough free cash to put some serious R&D into a new game/engine. Then we might get something out of it. As of now, this consolidation probably only helps the distribution and supply chain portions of these 2, allowing them greater profit while keeping prices the same.

$0.02<mine

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I actually enjoy some EA games, however their community forums aren't too great, I don't know what it is about publisher forums that they always seem restrictive or technically flawed  :wall:

Amen!

look @ vivendi universal's forums... like 12 year old garbage.

:stupid:

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Yeeeeeeeeeeeeee-HAW!

Hopefuly GR3 will play alot more like Medal of Honor. :shifty:

lol! Yup, EA having more of a say in what we get is just what I wanna hear.

I was browsing the UBI forums and someone mentioned a game that slipped under the radar for me...Hidden & Dangerous 2 and I decided to check some reviews out. Found an interesting quote in one of them

"I'm not sure whether Illusion's sequel will get the treatment it deserves this time around. Most probably in Europe, it will be more popular. In North America, where big bangs, high production values and cinematic 'rail shooters' reign supreme, the hint of frustration and subtle depth that Hidden and Dangerous 2 offers might not be so alluring"

I said "You know it" and jumped in the car to go grab it...and the expansion pack for $25cdn. It's more like a cross between GR and Commandos (you can command/control 4 men), but that may not be a bad thing...gonna dig in during the holidays. The level of control you have in how you play is astounding...you even have weird unheard of orders like "Take cover". I get the feeling I may not be annoying anyone here for quite some time once I start this bad-boy. And graphically, it aint FarCry, but it does look sweet.

Anyways, are most Europeans smarter than westerners or something? :devil:

Edited by Old_Geezer
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Hidden & Dangerous 2 is awesome (and challenging). Not the most polished title around, but certainly entertaining. Have fun :)

While I hope this won't further "degrade" (relative term, obviously) the Ghost Recon series, I wouldn't mind seeing a combination, a sort of Call of Duty in a contemporary setting and with a Clancy storyline ;) Then again, it wouldn't surprise me if that idea's already being tossed around - they've brought the Battlefield series up to modern settings, after all.

Anyways, are most Europeans smarter than westerners or something?
But of course. Especially the Norwegians :whistle:
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Hidden & Dangerous 2 is awesome (and challenging). Not the most polished title around, but certainly entertaining. Have fun :)

Thanks Day...I intend to (muhahaha). And a strategy/action toggle does have potential too...like all flight sims allow you too toggle every realism option on or off, turning an ultra-realistic wwII flight sim into tie-fighter with spitfires if so desired.

EA has come out with some interesting titles...or should I say EA has allowed some interesting titles to be produced? They do have strategy games and the Sims series and some other unique titles...I never played any of them, but they are clearly different and therefore a good thing. The more genres the better. Their take on shooters could use some evolving though, but then, really, who else is any different...other than the folks producing [OFP: DR] and H&D3(?)...oh, and hopefuly GR2...well it's still possible isn't it? heh heh.

Edited by Old_Geezer
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The french being taken over... who knew...

He he.....yep sounds about right..........they'll probably invite the EA execs.'s in for coffee and pastry.

I am mildly disturbed by this news..EA are not exactly known for their sprawling, realistic, free roaming style of games, they should stick to Tiger woods and John Madden....but dear lord stay away from GR and god forbid they get their greasy hands on the R6 series............... :(

The dragon has two heads indeed Mr. Sart......... :ph34r:

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