EA Buys Out a Game Studio After Shutting Another One Down 3 Weeks Ago (arstechnica.com)
EA has acquired the video game studio Respawn Entertainment. "The studio, co-founded by former Infinity Ward chiefs and Call of Duty co-creators in the wake of their departure from Activision, has been bought out in a deal whose total value could reach $455 million," reports Ars Technica. "The news by itself may seem odd, considering that EA shut down one of its other wholly owned studios, Visceral Games, only three weeks ago." From the report: A report from Kotaku sheds light on why EA made the move: as a response to another game publisher, Korea's Nexon, making a formal bid to buy Respawn outright. Nexon currently publishes a mobile spinoff of Respawn's Titanfall shooter series. Kotaku, citing sources close to the matter, claims that Nexon had bid to buy the company outright. EA exercised its contractual right to match the offer, Kotaku says, and it ultimately outbid Nexon. Among other things, the buyout preserves Respawn's continued work on an upcoming EA game set in the Star Wars universe; EA currently enjoys an exclusive license to making Star Wars-related video games, and any takeover by another company would have to resolve whether or how such a project would continue in production. Respawn's Star Wars project still does not have a title, a release date, or revealed gameplay footage. Respawn announced its work on an additional, unnamed VR game at Oculus Connect 4 last month; the EA statement says that project will continue apace, as well.
How many have they closed over the years ?
Titanfall 2 was excellent, thanks. Good luck to all employees.
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Maybe they can write off part of the closed studio ? And it bevomes cheaper to close one buy another ?
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Where game studios and franchises go to die.
It's pretty much all they do today. Find a studio that has a hit or even a hit series, buy them, crank out a few crappy knockoffs with micropayments or "keep paying if you want to get the whole game eventually", until the last fan of the series walks away in disgust, then throw it away and abuse and kill the next good idea someone else had.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
The headline appears to imply that all game studios are equal, which is an absurd proposition. It's like saying that all programmers are equal and that any programmer can be replaced by a H1B who barely speaks English.
Obviously, the game studio they shut down lacked the skills that EA wanted, while the one they just bought has the talent that EA require.
I'm not saying this is a good thing, and it will likely result in the destruction of Respawn, but the headline is patently absurd.
Is this one of these MBA things where you try to get the optimum short term benefit at the cost of long term investments? I understand that sometimes you need to cut your losses short, but to sack so many people because some manager took the wrong bet?
EA Games: Ruin Everything!
Do not include EA sports shits. Also excluding studios they enslaved, forced to give birth to the titles in their womb & then had them executed.
So any original & worthwhile EA titles since 1997?,,,, I thought not.
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"Your mother was a hamster, and your father smelt of elderberrys!" -- Monty Python and the Holy Grail
Before you all go and rant about EA closing down a studio they bought...
Visceral was an internal studio. It was the re-branded EA Redwood Shores studio located on the EA corporate HQ campus. It was never just some scrappy kids making games who got chewed apart by the big bad EA. Everyone who ever worked there (including myself way back in the day) knew exactly who they were signing up to work for. I'm sad to see it imploded, but this story doesn't fit your David vs Goliath narrative.
by nexon, who first pitched an offer to buy them. ea would have lost their chance had they not exercised their right to match any offer for the company.
either way, ea or nexon, that game franchise is now fucked.
I just don't get this shit. When I was a young'un, back in the 80's, I survived my first layoff. Why? Were we losing money? No, it was because Someone We'd Never Heard Of said we would grow 10% this year, and we only grew 9%. Bunch of fucking layabouts, lets fire 10% of those lazy ass fuckwits, none of them management, and promote 5% of them into management positions. That can only help, right?
It was in the 80s the MBA became a thing. It was also in the 80s that the Great Decline started.
Video games are not Electronic Art and those insulting jocks need to GTFO.