Apple EA takeover rumor dismissed by analyst

Sources: See below.What we heard: Though an Apple offensive into the gaming market has long been rumored, speculation of such a move reemerged with a vengeance recently. Last week, as reported by Forbes magazine, the Cupertino, California-based hardware giant hired away Richard Teversham, the...

Sources: See below.

What we heard: Though an Apple offensive into the gaming market has long been rumored, speculation of such a move reemerged with a vengeance recently. Last week, as reported by Forbes magazine, the Cupertino, California-based hardware giant hired away Richard Teversham, the senior director of business, insights, and strategy of Microsoft's European Xbox arm. The week prior, Apple hired AMD and ATI veteran Bob Drebin, designer of the graphics processor used in the GameCube, and Raja Koduri, AMD's ex-chief technical officer.

The HR trifecta was taken by many as a sign that Apple would ramp up gaming support for the surging iPhone market and its Mac computer line. However, this week saw cable network CNBC stir up speculation that Apple might more directly enter the game industry--by simply buying Electronic Arts. In a summary posted by TheStreet.com, CNBC analyst Guy Adami is quoted as saying that, "There is chatter that Apple is eying Electronic Arts as a takeover target."

The official story: With EA's earnings report just hours away, reps for the company did not return requests for comment.

Bogus or not bogus?: Rumors of an EA buyout have rattled around since the company's stock became a bargain during last year's worldwide economic implosion. Back then, it was the Walt Disney Company--which Apple CEO Steve Jobs has a large stake in--that was pegged as the suitor.

But though EA is a major backer of gaming on the iPod, iPhone, and Mac, talk of a takeover seems a bit premature. Also, CNBC's game industry "insight" should be taken with a fist-sized grain of salt, given that the oft-ridiculed cable network recently claimed that the Grand Theft Auto franchise is "running out of steam"--while acknowledging GTAIV's 13 million units of sales in the same article.

Indeed, one of the game industry's top analysts was quick with the "bogus" smackdown. "Sounds retarded to me," Wedbush Morgan analyst Michael Pachter told GamaSutra. "[iTunes] owner Apple could buy Warner Music for around $3 billion and control 20 percent of all recorded music. That makes more sense to their current business model than buying EA for more than twice that, doesn't it? I don't want to start a rumor, but want to point out that Apple doesn't own any entertainment content, so I don't know why they would feel compelled to enter a new business unrelated to their current product slate."

To get a taste of what gaming will be like on Apple's Mac platform, check out this tech demo from id Software's John Carmack at the 2007 Apple Worldwide Developer's Conference. The game would later be revealed as Rage, which will be published by EA.

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Discussion

81 comments
CaptainMuse
CaptainMuse

Apple is trying to take over and bend us over and make us pay extra for their products

ratm247
ratm247

@brood_aliance: "They (apple) are good for little, mainstream gadgets, not powerful machines" LOL, maybe you should go to the apple website for the first time, and look at what they sell. "What kind of smart computer user uses a Mac anyways" uh, the kind that doesnt care about games.... "Microsoft won't bail em out this time" i assume youre referring to when microsoft bought a chunk of apple back in the 90's. microsoft didnt save apple, they were saving themselves. they were being hit with an anti trust suit, and buying a piece of apple looks good for them. i suspect you once again did not actually look at the material youre commenting on, as if you did you would realize that the amount of money that apple got from microsoft was nowhere near enough to "save" the company. all apple really got out of that deal was a mac version of office.... yay....

ratm247
ratm247

i think its s logical progression for apple to try and drop the crap for games stigma, as that is the only market apple is not making headway in presently. however if im not mistaken, takeover dont seem to be apples style, they are more likely to form a partnership, or agreement with ea to improve gaming on the mac. i will welcome the day when i no longer have to have a pc to play games, and i can go to an all mac network. i might keep a pc to kick around and overclock though.

Kurzicide
Kurzicide

Nice, instead of EA making crappy games they'll make a surge of games that cost $10 more than normal games. You gotta follow Apple's overpricing business strategy, don't you?

kytomasi
kytomasi

lol Xbox cant run Crysis

pureskull123
pureskull123

wow, Idk much about the iphone, but i believe apple is just not good enough for the gaming industry, plus their machines are overpriced with lame hardware that will not even run crysis on medium settings. and i mean the imac is proof of what kind of bull... apple is making. THATS IT STOP ARGUING.

ratm247
ratm247

@fps_d0minat0r you are part right. microsoft rushes everything they do for money, not just games. vista for example, it was more like they realized they hadnt released an os for a while so they whipped up another dos patch and called it windows vista. microsoft is a company run on cheap imitations and rushed products, and then charging you for the support to fix it. they dont charge to replace 360s because the failure rate is so high too many people would be furious. theyre on theyre 4th hardware revision, trying to get it right. i know 2 people that havent had to send back their 360s, and they just got them for xmas, so the clock is ticking.

sk8oridie44
sk8oridie44

@alexender00 You need to learn how to READ! I didn't right this, I just got it from somewhere else. Now I never said I agree to this, BUT, what do you guys think about this? I clearly don't agree with some of the things posted either, such as Microsoft going bankrupt.

necronaux
necronaux

Both EA and Apple have enough of their own problems. iphone loosing mega-sales to blackberry, and ea, well, just being ea. Combining the 2 wouldn't be good.

alexender00
alexender00

@sk8oridie44 Wow! That's taking fanboyism to the extreme. Seriously! No Exclusive at all? Seriously? Xbox had more exclusive than PS3. StarOcean, Fable 2, Tales of Vesperia, all X360 exclusives. If you are a fan on RPGs, Xbox is where to be. The simple fact that you miss that one point make all the rest of your argument futile and baseless. As for Microsoft going bankrupt, I wouldn't bet on that. I harbor very little love for Microsoft, but even if the console market were to shut Microsoft out tomorrow, the company would not go bankrupt because they have a little program called Windows and Office which are still by far (Over 80% market share) the dominant software on the planet and 2 years won't change that, 10 years won't change that, look at Firefox, I love Firefox and use it everyday but it market share worldwide is not even close to Internet explorer (Worldwide) and that's after 10 years of harsh browser war. Go back to dream of anarchy and let us live in the real world. Microsoft is a behemoth and it's not going away anytime soon.

Billabong_Bum
Billabong_Bum

Im lost, there buying out EA or making a console?

sk8oridie44
sk8oridie44

I just like to share with all of you this, as I copied it from another source (can't remember the source lol) This: "When the PS3 was announced in that infamous E3, with a "HIGH" price... REALLY, only the price was "wrong" in the console. BIG point, but it only allowed nintendo and microsoft reach higher sales, if the PS3 were launched at the expected HALF price, the xbox 360 and wii today were dead in the water. BUT the "cheap" cost you "more" as my granddaddy used to say. the wii is just smoke and mirrors period, you get the same result from waving the wand like a maniac that just shaking it 1 inch, its more a motion sensor than a motion 3D sensor, its fun one day and for a while, but get bored aftertime, nobody go to see the same magic show every day. the xbox 360, well if the wii are smoke and mirros, the xbox is just an empty box. it break more often than a window in front of a baseball park, zero exclusives games, any game released can be found on a PS3 or a PC, halo and gears in fact get better graphics in a PC, anyone remember the BETA, sorry my mistake, HD-DVD failure, or that half the consoles miss the HDMI, making the consoles with HDMI useless since not developer can just code for the best and forget the rest, i think the HDMI was so you can actually play HD-DVD in full resolution, but since microsoft think 720p is enough for most TVs, and 1080p is useless... you get the idea, i can accept pay to blizzard for my WOW joy, but i get dedicated servers and the game is played in those servers making my PC just a client... but how in name of God, microsoft can justify pay to play online, if i host the game in my console, and use none bandwidth from microsoft servers to play, did i mention microsoft POINTS, whats the point?, i will leave it here, but i can go for a long list. the PS3 is only getting better features via firmware, from a basic launched console that still today in just hardware is far away from their competitors, head to head to the xbox 360, you get wifi, blu-ray and free play online, thats just a $800 today value, less cut $200 from the blu-ray player that each day pass its more clear its not unnecessary and neither unwanted, wifi and play free online are almost a must, even dropping the wifi $100, you get 10 years without paying $50, thats $500 not wasted that you can use to buy games, and thats without mention upgrading hard disk, cost and wasted time in dead consoles,etc remember the "cheap" cost you "more". the PS3 is simple the best, best hardware, best reliable, best software, best online (yeah its best in my eyes, free, home, store, etc), best exclusives, best cam, best media support, best interface, you can use as a PC via linux, compatible with any USB keyboard, storage, etc, best downloadable games, best PSP friend,etc to be fair the only down is the compatiblity with ps2, and as much as i think is more a RP thing, i expect it returning via the firmware 3, or maybe later if sony extended even more the ps2 life. MMMM... i microsoft hater you may think, i never denied it, in fact i was saying similar thing from the last couple of years and i always know i will have the last laugh. i quoted myself from 2 years ago "if you had microsoft shares you must sell them all now, cause you never will be see that price again, it had reached their peak price and now is just going down, maybe microsoft wont go to bankrupty, but you bet it will be just a shadow" as today im still a nostradamus lol i still believe that by 2012 microsoft will go away, 'you can sell anything for gold, but after a while, when the people discover how you do it and see its easy, anyone can make it and that you are selling it way overpriced, everyone star making their own and then you cant sell it anymore even for a dollar' hope i quote this 2 years from now"

brendanhunt1
brendanhunt1

@fps_d0minat0r interesting point that M$ rushes their games and sony lets their developers take their time. it would explain how some sony games have been delayed (home is a good example) but it is worth it. it would also explain why the xbox breaks soo much

fps_d0minat0r
fps_d0minat0r

the "apple iplay" sounds awesome.......im gonna get patents before they do mwuhuhahahahah @ CWSoccer07 it depends on the company really. M$ just want money so they rush all their games, halo wars is a classical example. sony however let the developers take all the time in the world......e.g killzone 2, MGS4, gran turismo. these games took atleast 4 years making and it was worth every single second of the wait. in conclusion if sony takes over a game studio its a good thing, if M$ do its a bad thing.

CWSoccer07
CWSoccer07

I am against larger corporations owning game development groups. The larger corporation will trim what the development could do. Ie, Apple could tell EA, your allowance for making the Xbox 360 version of this game is $x,xxxx,xxx. When EA might have spent more if they weren't owned by Apple. The same can be said if Microsoft was to buy EA. Microsoft could impose things that would hinder PS3 game development. Didn't Bungie separate from MS for the same reason. I don't know why EA would want to open that door.

Mr_Fujiv1
Mr_Fujiv1

apple doesnt need EA we relate to apple with the i phone and i pod all that it wouldnt be right

brood_aliance
brood_aliance

What's with all the EA hating? EA publishes and makes some pretty good games. Without EA there would be no Battlefield, Call of Duty (2015 crew worked on MOHAA then made Infinity Ward), and many other games that they funded. If you don't like EA, don't buy their games. As simple as that. Apple shouldn't be going into the Gaming business. They are good for little, mainstream gadgets, not powerful machines. Right now, the only reason Apple is still in business is because of the iPod and iPhone. What kind of smart computer user uses a Mac anyways. Its for people who can't find the power button. Plus, if they fail hard, Microsoft won't bail em out this time.

Inconnux
Inconnux

Why would Apple want EA??? Apple is known for high end hardware/software that is easy to use. EA is known for churning out generic games every year... I don't see how they could mix

gatsbythepig
gatsbythepig

He may actually be right this one time. But Pachter has no right to call someone else's speculation "retarded". I am suprised that he can even say the word and if he was writing in these forums, he would have been suspended for that remark.

lilmp89
lilmp89

@smbius I see what you mean and agree. They would've made their move before. My comment was more or less a rant about gaming on my macbook I guess, heh. I'm rather hesitant to partition my hard drive to install windows, and it's probably not the best of macs to do it on anyways. Still, it's never to late to begin broadening the software support. =)

rolla020980
rolla020980

So if Apple buys EA, then does that mean that they will charge $10 for game patches?

Hvac0120
Hvac0120

Possibly Apple is looking to get into the console market? The iPhone is picking up steam as a handheld gaming device. I think it's too early for Apple to actually be getting knee deep, though. A buyout of any Publisher just doesn't seem like a good idea until Apple has more of a history in the gaming industry. Wouldn't it be a strange world to live in where Macs are the gaming computers and PC's are the underdog? Well, back to reality... _

nappan
nappan

"Wedbush Morgan's Michael Pachter deems speculation "retarded."" What an eloquent genius he is. :rolleyes

jivemaster
jivemaster

Awesome, then we can have to gay companies rolled into one, and make one big ego fuelled machine.

playwrite
playwrite

Ah man, can you imagine if all of those EA games were published by apple? No PC version (maybe), idiotic feature removals (just buy the "pause button" DLC for 49.99!) and a repeat of MGS4's friggin apple logo on everything syndrome. Actually, theres a good chance that Apple would run EA into the ground if they tried to exert to much pressure on it. EA may be the second biggest publisher in the world, but we certainly don't need them.

smbius
smbius

@lilmp89 - But if Apple was smart they would have supported games in their machines a LONG time ago. The fact that they went intel and allowed their machines to boot into Windows XP sends a clear message that they completely gave up in Mac gaming.

JGoWild
JGoWild

Even though I dont like EA, I have to agree with patcher that EA will not sell itself out to Apple, and regardless of Apple trying to enter the Gaming scene, it is not likely going to buy EA for the reasons: 1. EA is one of the major developer/publisher on the sports gaming genre, no matter which console/system we talk about. I dont think EA wants to give up xbox and playstation and other gaming platforms market just yet. 2. Apple isnt fully immersed into gaming industry. The only gaming device it has is iphone/ipod(touch), regardless of the fact that it is in a competition with a more customers based DS and PSP. Mac can handle the superior graphics, i am not to judge that, but the fact right now is that there arent many developers who are willing to put efforts into creating a new ip solely dedicated to mac, besides a lot of developers are developing for consoles. So if I can figure these things out, im pretty sure Apple can too. 3. Last but not the least, If Apple Does buy EA, then we can finally say good riddance, but thats just me.

fauljosh
fauljosh

I think Mircrosoft would be the more likely canidate for buying EA. But they seem to want to be nothing more than a hardware manufacturer now. They let Bungie go.

KhanhAgE
KhanhAgE

"Sounds retarded to me," Wedbush Morgan... QFTW

starbead
starbead

I didn't see the problem with the CNBC GTA IV article. It stated clearly that the game had massive sales, but pointed out that the Lost and Damned DLC seems to have underperformed and Chinatown Wars has grossly underperformed. Seems like pretty solid information to me.

nurse_tsunami
nurse_tsunami

While it would be intriguing to think that Apple could finally make EA produce some decent games, there is no way that Microsoft would let Apple buy out EA without a bidding war. EA is too important to Win/360 platforms to let it go.

Everiez
Everiez

I don't mind if Apple can make EA better. Why not?

actsai
actsai

Two unrelated companies merge to be a big industry player? But the fact is the hardware side of the equation is way off; a $250+ Radeon 3850 vs a $150 Radeon 4850 and Crysis PC subsidize Far Cry Mac sale, you do the math. Ubi and Acti/Bliz could beat such Apple/EA group to a pulp like that.

lamprey263
lamprey263

[This message was deleted at the request of the original poster]

lilmp89
lilmp89

If anything, Apple, please raise support for pc games to be released on Mac OS...a new console is a waste of money. Get some support for you're already capable system if you plan to do anything. Many of us would appreciate some pc games on a stable OS =)

laresistance123
laresistance123

Making games for the iphone/ipod is a waste of money. They should be making them for the PSP.

mikemaj82
mikemaj82

Wow. I see a lot of people claiming "apple destroys everything they touch", yet no one is giving any examples. You have to back up your statements with examples, and stop talking out of your a$$es. The reason Apple products are overpriced is because you're getting quality, not crap. Not machines that fail on you four and five times.

RebornJeremiah
RebornJeremiah

Microsoft would have done the same thing long time ago so I don't think this is true

AznTakumi
AznTakumi

This is stupid. With apple's who though of being perfect, imagine how there games will be..

MatzeEdend
MatzeEdend

The only thing Apple and EA have in common is the tendency to destroy whatever comes into contact with them. Together they could bring about the digital apocalypse... I always knew Jobs was one of the four horsemen anyway.

Paul_GameFury
Paul_GameFury

CNBC didn't say anything wrong about GTA. Every game in the GTA series was been a vast improvement over the last until GTA IV, which was basically 'more of the same' even though it had a longer development cycle than past games in the series. The series is running out of steam, but that doesn't mean it is going to lose sales yet.

alexkn64
alexkn64

I'm so glad this was bogus. Apple and gaming do not mix. They destroy whatever they touch, and jack of the prices to make up for it.

Petri87
Petri87

If Apple would buy EA then what would happen to the 360 support since Apple and Microsoft are rivals in more ways then one. And if they would buy EA then a smart thing to do(or atleas i would if i owned a huge hardware company) is to put out your own console and if that would happen then theres no hope for Sony, Microsoft and Nintendo since that would mean that 20%+(no real basis for the numbers but EA is insanely huge and publish more games then anyone out there by a large margin) of games per year would be exclusive on an Apple console and that would be horrible for the other consoles.

gnbfd
gnbfd

That would suck... probably for PC users. Maybe 360 users. Maybe Apple is working on a console of their own...

bigjerms3000
bigjerms3000

bogus, first of all. second, wouldnt that jeopardize ea games on a microsoft platform?

Mystoksor
Mystoksor

If we were to learn one thing from the success of itunes, it's to make things available across as many platforms as possible. It would affect us as consumers if apple started publishing these games, as long as they didn't make them exclusive for some console they're trying to push

athenian29
athenian29

In the immortal words of the PSM Reader's Letters Section, "If Apple DID make a console, the controller would have what, one button and a touch wheel?" My opinion: since grounding Tiberium, EA has gone nowhere but down. Anyone - even Apple, the anti-gaming computer company - could run that show better.

ChamomileBaths
ChamomileBaths

Maybe it's rich, but they're the fastest growing handheld in terms of install base and developer support. Apple would need an OnLive answer or an unbelievable/nonsensical push for Mac Computer Gaming. But to acquire EA for the iPhone/iPod Touch doesn't make sense yet.

admiral_picard
admiral_picard

lol! Apple and gaming! HA HA HA! Oh wow, that's rich...