Microsoft EA Games buyout tipped to bump Xbox One exclusives

Microsoft EA Games buyout tipped to bump Xbox One exclusives

It isn’t exactly a secret that the Xbox One is playing second fiddle to the PlayStation 4 this generation. Part of that probably has something to do with Microsoft’s disastrous E3 reveal of the Xbox One all those years ago, but more recently, the problem seems to stem from a lack of exclusive games. Though Microsoft has a few exclusive franchises like Forza, Halo, and Gears of War, Sony has managed to secure many more exclusives for the PlayStation 4.

Since both platforms share a lot of similarities, barring any feelings of brand loyalty, the decision about which to buy ultimately comes down to exclusives for many people. In the end, all we have to do is look to sales numbers to determine how each console is doing. The PlayStation 4 is far and away the leader in sales for the current generation, and though the Xbox One has little hope of surpassing the PS4 before we’re onto the next round of consoles (whenever that will be), that doesn’t mean Microsoft can’t improve its fortunes right now.

If it wants to see immediate improvement, Microsoft will have to look at what it can do on the exclusives front. A new write-up from Polygon examines the struggles Microsoft has had with third-party developers, and while the entire article is definitely worth a read, there’s one part in particular that stands out. According to “a reliable source close to Microsoft,” Polygon says that the company has been mulling an acquisition of Electronic Arts, with other potential targets being Valve and PUBG Corporation.

Secondly, for EA specifically, this doesn’t make sense for a number of reasons. I asked Wedbush analyst Michael Pachter to explain.

“The reason Microsoft would have trouble buying a publisher is that the publishers make more money on the PlayStation platform than on the Microsoft platform,” Pachter told me. “At best, a purchase of EA would allow them to capture 60% of net income, and likely far less, so it wouldn’t pencil out financially.  This might have made sense back in 2001 (when Xbox launched), but at these prices, it’s hard to justify. Also, keep in mind that more than half of EA revenue is licensed, so Disney and FIFA might not be happy if sales of their games were cut in half.”

Thank you for reading 

Devesh ojha