Electronic Arts to be next in gaming deal frenzy?

Investors and gamers are betting on the next company to be acquired. Wall Street believes that Electronic Arts, the maker of the Madden NFL series of football video games for kids, might be the most likely target.
Shares Electronic Arts (EA)Tuesday’s gain was 3% CNN Business asked the company if it was considering selling or looking to purchase.
Electronic Arts made several acquisitions over the past year. This included a $1.4 Billion purchase of Playdemic (the developer of the popular mobile golf game). WarnerMedia owned Playdemic. AT&T (T)CNN’s parent company is owned by the media giant.

EA is becoming the “odd man out” in gaming unless it makes a move.

The Zynga (ZNGA)Deal will provide Take-Two Interactive (TTWO)Mobile gaming has seen a greater presence of Take-Two. Take-Two stock rose by 1% Tuesday
And Activision Blizzard (ATVI)Thanks to Microsoft (MSFT)It is one of the largest and most well-respected companies in the world. They are able to fund new games, as well as any additional legal actions related to claims of discrimination or sexual harassment.
As people play more games on their phones than consoles or computers, companies are finding it easier to make money.iUbisoft, a smaller French game developer, and ke Electronic Arts may need to do more in order to increase their market share. Ubisoft (UBSFF)Investors bet it is a potential takeover target and shares shot up 8% Tuesday
Activision Blizzard took a major step into mobile in 2016 with the launch of the King Digital, Candy Crush maker, was bought for nearly $6 billion.
Other tech companies are not far behind the appeal of gaming. Apple makes a lot of money from it thanks to the fees it receives for games bought through its App Store and Arcade services. Facebook (Facebook)Meta, the owner Google (GOOGL)YouTube parent Alphabet Amazon (AMZN)And Netflix (NFLX)They have all tried out the games.

Gaming companies are also trying to make a mark in the “metaverse,” virtual worlds that are becoming more popular with younger people.

Satya Nadella, Microsoft’s chairman and CEO, stated that gaming is “the most exciting and dynamic category in entertainment across all platform platforms” and would play a crucial role in the development and metaverse platforms.

He said, “We are investing heavily in world-class content and community to usher in an era of gaming where players and creators come first and gaming is safe, inclusive, and accessible for all.”

Microsoft might be eyeing a gaming platform, it sounds. RobloxThe metaverse phenomenon of, which was made public last year, is now known as Roblox. Roblox now boasts a market capitalization of $46 billion. This is higher than Take-Two or EA. Roblox shares rose 2.2% Tuesday

Drew Crum, Stifel analyst, said Tuesday that Microsoft’s desire to boost its metaverse “calls into question whether the implications for standalones such as Electronic Arts or Take-Two or an incumbent such Roblox and whether they may be technically and financially disadvantaged, in case the metaverse is in fact the next frontier in interactive entertainment.”

Microsoft-Activision may put additional pressure on Japanese conglomerate Sony, which is the maker of the PlayStation console as well as operator of PlayStation Studios, its game development division. This could make it more difficult for Sony to develop its own gaming platform.

While Sony develops a number of blockbuster, PlayStation-exclusive games, the company has lagged behind Microsoft in launching a true competitor to the Xbox Game Pass cloud subscription service.

Shares Sony fell 7% Tuesday. When asked for its reaction to Microsoft’s purchase, the company was unable to immediately be reached.
However, Japan’s rival is still a strong competitor Nintendo (NTDOF)The popular Switch console’s manufacturer,, saw a 2% increase in sales.