Electronic Arts is one of the biggest names in the video game business, and it is reportedly in talks to go private. This potential move raises questions about its motivations. According to reports, video game companies are moving towards consolidation. This deal could reflect broader concerns among EA executives about the future of the industry.
The video game market experienced rapid growth in the 2010s and during the pandemic. However, recent trends show a shift in consumer behavior. Gamers now tend to stick with old favorites rather than purchasing new titles. This change is evident in Electronic Arts’ own financial performance.
In its fiscal year 2025, seventy-five percent of EA’s revenue came from live services rather than new game purchases. This supports the observation that the industry is changing. One analyst noted that we are moving away from an era of new ideas to a time where people settle into the same games, spending money over and over again.
Given this new reality, the reported fifty billion dollar price tag for the company could be seen as its peak valuation. The industry may be entering a phase where profits continue to rise but overall company valuations begin to fall.