Electronic Arts (EA) is now under new ownership after a major private equity leveraged buyout, raising questions about the future of its game development and intellectual property. The acquisition, valued at $20 billion, was completed by a consortium including Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners.
Emmanuel Rosier, director of market intelligence at Newzoo and a former nine-year veteran of EA, expressed uncertainty about the company's direction. He suspects EA will maintain its focus on sports titles, particularly European football, given its significance in Saudi Arabia and the Middle East. Esports is also expected to receive increased investment for similar regional reasons. However, the fate of EA's less prominent franchises remains a significant concern.
Rosier highlighted that EA possesses numerous dormant intellectual properties, such as Ultima and Wing Commander, which have not been utilized for years. The analyst posited that these IPs might be sold off or licensed to external studios for development, potentially for mobile games, emphasizing the current industry's focus on leveraging existing IP value. He added that EA likely has many such IPs that are not actively being developed or cared for internally.
More critically, Rosier pointed to BioWare's franchises as a major question mark. The studio has faced struggles in recent years, and its flagship series, Mass Effect and Dragon Age, have experienced mixed success. While Mass Effect enjoyed a strong initial run, the long-term viability of its funding under new ownership is uncertain.
"I will believe it when I see it, the next Mass Effect game, let's put it that way," Rosier stated, reflecting a common sentiment among those observing BioWare's development cycles. He noted that game development at BioWare can span many years, and the new investors, who may lack emotional attachment to EA's historical portfolio, are likely to prioritize financially sound decisions. This could lead to the cancellation of projects, including the next installment in the Mass Effect series, if deemed not sufficiently profitable or strategically aligned.