Accepted Access Episode 842: Concerns and future prospects following Electronic Arts' massive acquisition
Note: the original Japanese article can be found at:
https://www.4gamer.net/games/036/G003691/20251110001/
Writer: Okitani Umane | 2025/11/10 03:00 (UTC)
Image Gallery No.008 thumbnail / Access Accepted #842: Concerns and the Future of Electronic Arts After Its Massive Acquisition
The news that Electronic Arts (EA), the largest third-party publisher in the United States, was acquired for $55 billion in cash by the end of September sparked widespread discussion far beyond the gaming industry. This article explores the background behind this acquisition—where a veteran company, long known as one of America’s iconic game firms and an early advocate of “inclusive corporate culture,” is being taken over by a consortium involving Saudi Arabia’s sovereign fund—by examining EA’s history and current state.
Accepting a $55 Billion Acquisition
On September 29th, U.S. time, the gaming world was abuzz with the major news that Electronic Arts, known for franchises like “EA Sports” and “Battlefield,” had agreed to be acquired for $55 billion (approximately ¥8.178 trillion).
Related article
Rumors confirmed: EA’s acquisition and delisting announced; valuation at approximately ¥8.178 trillion
On September 29, 2025 (U.S. time), Electronic Arts announced that its board of directors had approved the acquisition by a consortium consisting of U.S.-based investment firm Silver Lake, Saudi Arabia’s government-backed fund Public Investment Fund (PIF), and Affinity Partners—affiliated with Donald Trump’s son-in-law. The valuation in this deal came to approximately $55 billion (about ¥8.178 trillion).
[2025/09/29 22:18]
The acquiring consortium comprises Silver Lake, a Silicon Valley-based investment firm known for large-scale investments in companies like Dell and Motorola; Affinity Partners, run by Donald Trump’s son-in-law; and Saudi Arabia’s government-backed Public Investment Fund (PIF). This marks the largest all-cash acquisition of its kind to date.
The massive deal involved participation from over 20 major global banks—including JPMorgan Chase, Bank of America, Citigroup, Morgan Stanley, and Barclays—providing roughly $20 billion, or about 40% of the total funding. The consortium bought back all outstanding shares of EA (over 260 million) at $210 per share, effectively taking the company private.
Going private removes short-term earnings pressures, allowing management to focus on long-term goals and reducing exposure to hostile takeover threats. As a result, Andrew Wilson—the CEO who has led EA for the past twelve years—will remain in his position, and there are currently no plans for layoffs or studio closures.
Electronic Arts is one of America’s oldest publishers. Founded in 1982 by Trip Hawkins, who designed a graduate-level “Game Theory Department” at Harvard University while still a student—driven by his desire to make games a lifelong career—the company was established during the era when gaming wasn’t yet recognized as an industry.
Hawkins, formerly Apple’s first marketing director, left the company after realizing Apple had little interest in game development. He then launched Electronic Arts and recruited passionate engineers from within Apple—marking the beginning of EA’s legacy.
In its early days, many of EA’s titles were developed for the Apple II platform. Among the initial hits (1983) were “Hard Hat Mack,” the first digital pinball game “Pinball Construction Set,” and the four-player strategy title “M.U.L.E.”
Later, a rare five-year effort to secure licensing rights and develop graphics paid off with the massive success of “John Madden Football” in 1988—launching EA Sports as its flagship franchise. EA also promoted developers and programmers as “artists” through bold advertising campaigns such as “We See Further,” helping shape American gaming culture early on.
The iconic mid-1980s EA magazine ad campaign, “We See Further,” is often credited with changing perceptions of the gaming industry. Image Gallery No.003 thumbnail / Access Accepted #842: Concerns and the Future of Electronic Arts After Its Massive Acquisition
However, EA has also faced criticism from some gamers for being a “destroyer of capable developers.” Over the years, it acquired studios known for iconic games—such as Bullfrog Productions, Westwood Studios, Origin Systems, and Mythic Entertainment—but often shut them down after about ten years when projects didn’t meet expectations.
More recently, in 2021, EA acquired Codemasters—the rival of its racing sim division—but ultimately absorbed its IP into Criterion Games without fully utilizing it, followed by significant staff reductions.
Other notable controversies include the 2007 “EA Spouse” incident that exposed excessive workloads across the industry and the “Root Box” scandal in 2017 surrounding “STAR WARS Battlefront II,” both of which remain critical topics to address. Image Gallery No.004 thumbnail / Access Accepted #842: Concerns and the Future of Electronic Arts After Its Massive Acquisition
Pros and Cons of Eventually Becoming 100% Saudi Arabian-Owned
As discussed in “#725: Is Electronic Arts Actively Seeking Acquisition/Merger? The Background Behind It,” EA’s search for a buyer aligns with the broader trend in recent years—where major deals have reshaped the gaming industry. Bethesda Softworks and Activision Blizzard were acquired by Microsoft; Bungie joined Sony Interactive Entertainment; Zynga and Gearbox Software became part of Take-Two Interactive.
Developing AAA games demands massive investment, advanced technology, and large teams. Even established game companies are now seeking huge capital to survive—a key factor behind this wave of consolidation.
EA owns valuable assets: the “Frostbite Engine” powering titles like Battlefield; “Javelin,” a kernel-level cheat prevention system; and animation technologies seen in “EA SPORTS FC,” along with multiplayer expertise used in competitive events.
A long-standing reason EA sought acquisition was to escape the pressure—unique to public companies—to deliver quarterly results. Even Andrew Wilson, who had been rumored to be considering a transition to Disney, has now entered his 13th year as CEO and will remain in place after this deal. Image Gallery No.005 thumbnail / Access Accepted #842: Concerns and the Future of Electronic Arts After Its Massive Acquisition
As of March 2025, EA employs around 14,500 people. Yet it releases only about ten major new titles or large updates annually. Its business model relies on recurring revenue from sports titles and long-running live-service games such as “Apex Legends” and “The Sims 4.”
In fiscal year 2024, EA released several underperforming series entries like “F1 24” and “Dragon Age: Veilguard,” along with the indie title “Tales of Kenzera: ZAU”—neither of which became major hits. While upcoming releases such as “Split Fiction” and “Battlefield 6” may perform well, the overall portfolio remains thin.
This massive acquisition leading to privatization directly enables developers to focus on more ambitious projects without being constrained by release dates, budgets, or post-launch performance metrics—rebuilding a fertile ground for innovation. This makes the deal highly advantageous for EA as a publisher.
On the other hand, the consortium’s leader, Saudi Arabia’s PIF (Public Investment Fund), is pursuing the national strategy known as “Saudi Vision 2030,” aimed at diversifying beyond oil dependency—a plan backed by massive investments of over ¥5 trillion. As detailed in “#754: From Oil Fields to Gaming—How Saudi Arabia Is Transforming Into a Next-Generation Game Hub,” PIF has been actively investing in gaming.
Prior to this acquisition, PIF already held 9.9% of EA’s shares and plans to gradually increase its stake through profit distributions within the consortium, eventually achieving full ownership via rollover—all under Saudi Vision 2030.
PIF is promoting game culture by hosting esports events as part of its broader strategy. Acquiring franchises like “EA SPORTS FC,” “F1,” and “Apex Legends”—which feature competitive gameplay—opens significant potential for future utilization. Moreover, there’s a possibility that EA’s over 20 development studios could be relocated to Saudi Arabia to boost domestic game development.
However, concerns remain: Can Electronic Arts—an early advocate of “inclusive corporate culture” in gaming—successfully align with Saudi Arabia’s more conservative societal norms? While titles like “Apex Legends” feature LGBTQ-friendly characters, there are worries about whether female developers’ treatment and living standards will be maintained if studios relocate. Additionally, the $20 billion raised from banks comes with repayment obligations, suggesting that further staff cuts, studio closures, or asset sales may become necessary for realistic financial management.
According to Stephen Totilo, founder of the independent media outlet Game Life (via insider reports related article), layoffs are not currently planned. He emphasized that “Electronic Arts will maintain creative control and uphold our proven track record of creative freedom and player-first values—this won’t change.” Yet, given the fluid nature of such developments, this commitment remains subject to real-world shifts.
With EA now serving as a pivotal piece in realizing Saudi Vision 2030, can it truly meet these expectations? Image Gallery No.007 thumbnail / Access Accepted #842: Concerns and the Future of Electronic Arts After Its Massive Acquisition
Author Profile: Utagawa Kaito
4Gamer’s overseas correspondent based in San Francisco. Since launching his series “Kaito Utgawa’s Access Accepted” in 2004, it has become the longest-running column on 4Gamer.net. With extensive connections across Western gaming circles and ongoing coverage of major game events, he continues to monitor the pulse of the global gaming industry.