EA Acquisition to Double Down on Live-Service Games and Major IPs, Say Analysts
EA Acquisition Could Double Down on Live-Service Games and Major IPs, Analysts Warn
The massive acquisition of Electronic Arts (EA) by Saudi Arabia’s Public Investment Fund (PIF), alongside Silver Lake and Affinity Partners, is causing waves across the gaming industry, with analysts predicting a dramatic shift in the company’s direction. Experts believe the deal could push EA to focus almost exclusively on live-service titles and major franchises while cutting back on experimental projects and riskier new IPs.
Industry analyst Serkan Toto from Kantan Games told GamesRadar that EA will be under immense financial pressure after taking on roughly $20 billion in debt through the leveraged buyout. This will likely force the company to prioritize blockbuster IPs and always-profitable franchises rather than invest in innovative but uncertain ventures. Historically, such leveraged buyouts often result in major restructuring, layoffs, and strategic overhauls something the gaming industry has rarely seen at this scale.
David Cole, CEO of DFC Intelligence, echoed this sentiment, suggesting EA will become even more dependent on live-service titles and its annual sports franchises such as Madden NFL and EA Sports FC. In the short term, the company may look to offload smaller, underperforming IPs to lighten its debt burden. “Long term, they might explore new growth strategies, but for now, selling non-essential assets seems likely,” Cole explained.
NYU Stern professor and industry researcher Joost Van Dreunen added that EA might consolidate underperforming studios or shut down weaker development teams altogether to refocus on high-revenue franchises, which already account for about 70% of the company’s income. “I doubt the new owners will care about dormant IPs unless they’re profitable or can be sold off,” he said, adding that there’s a chance long-shelved series like Command & Conquer could see a revival under new management.
Van Dreunen also noted that EA’s $55 billion valuation seems “inflated compared to its growth potential,” but the acquisition could benefit the publisher in other ways. Freed from the quarterly shareholder pressures of a publicly traded company, EA could gain more strategic flexibility. PIF’s experience in global gaming markets may also help the company expand its reach. “Saudi Arabia is using gaming as a vehicle for influence, and EA could benefit from escaping short-term profit demands,” he added.
Internally, however, concerns remain particularly among development teams like BioWare, who are reportedly anxious about the studio’s future under the new ownership structure.
The acquisition could fundamentally reshape EA into a company laser-focused on live-service titles and proven franchises. Yet this strategic pivot also risks stifling creativity and leaving little room for new ideas. Analysts remain divided on the long-term implications, but one thing is clear: EA’s future is about to change dramatically.
