Why is it reportedly that electronic arts, one of the biggest names in the video game business, will become private?
Bloomberg’s Jason Schreier notes that the video game company is heading for consolidation and that the executive could reflect broader concerns about the industry’s future. After rapid growth during the 2010s and the pandemic, Schreier said gamers in recent years “are more likely to stick to old favorites rather than buying new titles.”
This appears to be reflected in EA’s fiscal year 2025, with 75% of revenue coming from live services rather than new purchases. In fact, analyst and co-founder of Milk Studios, Nicholas Lovell, told Schreier:
So Lovell suggested that EA executives might consider the reported $50 billion price tag as a “peak rating” for the company.
