Videogame maker Electronic Arts has experienced a surge in the value of its stock following speculation that computer giant Microsoft is considering a takeover of the company. However, both companies have declined to make any comments on such an arrangement and analysts remain largely skeptical about how the acquisition would be practical.
To some analysts, Microsoft acquiring Electronic Arts makes no sense at all because of the fact that Microsoft is developing newer forms of videogame technology, making an acquisition of a traditional videogame company pointless. This potential roadblock has not stood in the way of trading, with EA’s shares climbing …read more

Nowadays, most companies are satisfied with even a minor gain in profit, signifying that the company has managed to do well in the midst of the economic crisis. However, Activision Blizzard Inc., the largest videogame publisher, has posted a sevenfold increase in profit in its second quarter thanks to a merger with a Vivendi SA division.
 
This means that Activision’s profits have jumped from $28 million a year earlier to $195 million this quarter, beating analyst expectations. This comes after Activision’s sales tripled to $1.04 billion due to the runaway success of World of Warcraft, Blizzard’s massively popular online game which …read more

Videogame maker Electronic Arts sunk deeper into loss in its fiscal first quarter thanks to falling revenue, a situation brought on by EA’s taking deferred revenue into account. However, EA has also managed to do better than Wall Street expectations would have had the company doing thanks to the popularity of its Sims 3 game and various Wii titles.
 
According to EA’s CFO Eric Brown, the company is expecting to grow in the second half of the calendar year, especially in its digital services unit. He has expressed confidence in EA’s big-ticket products, stating that EA’s most important titles are selling …read more

While the videogame industry had once been thought of as recession-proof, reports from Microsoft, Sony, and Nintendo show that even the videogame industry has managed to spring a leak. The makers of every major videogame console have shown a drop in profit, as well as a reluctance to cut prices that, according to analysts, could end up harming these companies in the long run.
 
Videogame makers have suffered throughout the recession as more and more gamers turn to other gaming alternatives that do not involve the hefty $60 price tag on new console videogames. However, Sony and Nintendo, whose PlayStation 3 …read more