Amazon acquiring EA could be a game changer for both companies as they adapt to a new gaming landscape.
$Amazon (AMZN.US)$ is one of the leading tech companies in the world. From shopping to health care, Jeff Bezos and his organization have been at the forefront of most technological advancements in the last decade. However, for all of its strengths, the one area Amazon hasn’t nailed down is gaming. If its rumored purchase of $Electronic Arts Inc (EA.US)$ goes through, that would all change.
For all of its flaws, EA is still one of the biggest players in gaming. From FIFA to Battlefield, EA’s collection of franchises is unmatched. The concern for EA is not sales, but rather how it will keep up in an increasingly competitive environment. There are more game developers than ever before, and many have the ability to usurp the current leaders in the industry. As time has gone on, EA has been either unwilling or unable to adapt.
Investors have already seen the benefit of a potential acquisition. In the wake of the rumors, EA’s stock price soared in anticipation of a monumental Amazon purchase. With the size of each company, the move still feels unlikely. However, $Microsoft (MSFT.US)$ ’s acquisition of $Activision Blizzard (ATVI.US)$ proved that anything is possible in this rapidly changing landscape.
For all of its flaws, EA is still one of the biggest players in gaming. From FIFA to Battlefield, EA’s collection of franchises is unmatched. The concern for EA is not sales, but rather how it will keep up in an increasingly competitive environment. There are more game developers than ever before, and many have the ability to usurp the current leaders in the industry. As time has gone on, EA has been either unwilling or unable to adapt.
Investors have already seen the benefit of a potential acquisition. In the wake of the rumors, EA’s stock price soared in anticipation of a monumental Amazon purchase. With the size of each company, the move still feels unlikely. However, $Microsoft (MSFT.US)$ ’s acquisition of $Activision Blizzard (ATVI.US)$ proved that anything is possible in this rapidly changing landscape.
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