Why is Electronic Arts, a leading force in the gaming industry, rumored to be considering a move to become a private company?
According to Bloomberg’s Jason Schreier, the gaming sector is experiencing a trend toward consolidation, and this potential deal may signal EA leadership’s wider apprehensions about the industry’s direction. Schreier pointed out that after a boom in the 2010s and during the pandemic, players have increasingly preferred familiar games over buying new releases.
This trend is evident in EA’s financial results for fiscal year 2025, where live services account for 75% of the company’s income, overshadowing revenue from new game sales. In fact, Nicholas Lovell, an analyst and co-founder of Spilt Milk Studios, remarked to Schreier, “We’re transitioning from a phase of introducing fresh concepts to one where players stick with familiar titles and repeatedly invest in them.”
Lovell also proposed that EA’s leadership could view the speculated $50 billion valuation as the company’s “high-water mark,” especially as the industry faces a future where profits may keep climbing but company values begin to decline.
