EA acquires VG Holdings (BioWare and Pandemic)

[Yegolev]

Hey, welcome to Big Business.

[UnSub]

The interesting question that those currently pounding thier heads into their keyboards is: why would EA buy Bioware?

1. Pits Mythic against Bioware Austin.

You just like seeing Mark Jacobs cry, Schild.

2. Brings in a shitload of talent that will either quit, or help EA fix Madden (lol).

EA doesn't need to fix Madden until 2010, when NFL exclusivity will threaten to run out.

3. WARHAMMER or Bioware MYSTERY TITLE will see the light of day. One studio will engulf the studio of the other.

EA will probably see both released, just to see if there is anything to this MMO market the boys in Vivendi keep telling them about. When neither achieves WoW numbers, they will be left on life support to die.

5. They just killed Atari in one, single blow. Next purchase, Atari, for pennies on the dollar.

You can't kill Atari - they return after every defeat like a bad comic villain.

6. They just bought the only decent RPG PC Group in America. Oh, right Obsidian. Bioware's bitch. Like they matter. Wriggling corpse of Black Isle imo.

I think this is the heart of it. EA goes after industry-leading studios, even if just to grind them into dust. There are few positive dev studio brands that get people excited about their games and Bioware is one of those.

9. LOL DRAGON AGE.

This will probably be the first game to quietly disappear.

10. LOL - Pandemic is actually pretty good.

Pandemic have some reasonable licences too. However, I'd expect them to be more likely gutted than Bioware.

11. They just got a shitload of great licenses.

Yep, there's another major reason. I envision KOTOR 8 being out by 2016.

In short, EA buys a well-known studio for the licenses and their credibility. Bioware and Pandemic employees polish up their resumes and start looking for work elsewhere.

[Trippy]

Hey, whadaya know... EA's CEO already had $300 million of his own money invested in Bioware and Pandemic.

http://blogs.mercurynews.com/aei/2007/10/electronic_arts_buys_biowarepandemic_for_860_million-2.html

That $300 million was Elevation Partners' money of which some fraction was his own.

[Ghambit]

Hey, whadaya know... EA's CEO already had $300 million of his own money invested in Bioware and Pandemic.

http://blogs.mercurynews.com/aei/2007/10/electronic_arts_buys_biowarepandemic_for_860_million-2.html

That $300 million was Elevation Partners' money of which some fraction was his own.

Can this even be legal?  I mean, he basically quit EA... formed this investment firm and dumped $300 million (as stock) into BioWare/Pandemic... THEN, goes back to EA as CEO and gets EA to buy the company he has $300 million in stock in.  Next thing we'll see is Elevation Partners selling their stock in Bioware and making a crapload in profit.  Cant be legal, but I bet they'd find a way.

This whole thing just stinks to me.  Nothing good comes of any of this besides lining a few crusty old guys' pockets.  The wage-slaves and gaming industry all lose.  Not to mention some of the biggest games will probably be delayed releases now due to the fallout. (yet another reason why software lags so far behind hardware these days)

[dr_dre]

The only thought i have atm is will I as an endconsumer profit from this ?

i dont know if this is good or bad. Should i bet my money on Schild as he thinks this is waygood or shall i be the cryboy now as i see good company's being swallowed by the big whale ?


Dre

[lamaros]

The only thought i have atm is will I as an endconsumer profit from this ?

i dont know if this is good or bad. Should i bet my money on Schild as he thinks this is waygood or shall i be the cryboy now as i see good company's being swallowed by the big whale ?


Dre

Lucky you signed your name there, it was hard to be sure who you were. Not that many people on these forums who can write with such excellence.

[dr_dre]

The only thought i have atm is will I as an endconsumer profit from this ?

i dont know if this is good or bad. Should i bet my money on Schild as he thinks this is waygood or shall i be the cryboy now as i see good company's being swallowed by the big whale ?


Dre

Lucky you signed your name there, it was hard to be sure who you were. Not that many people on these forums who can write with such excellence.

And you are ?

[Modern Angel]

The only thought i have atm is will I as an endconsumer profit from this ?

i dont know if this is good or bad. Should i bet my money on Schild as he thinks this is waygood or shall i be the cryboy now as i see good company's being swallowed by the big whale ?


Dre

Lucky you signed your name there, it was hard to be sure who you were. Not that many people on these forums who can write with such excellence.

And you are ?

He means quit signing your posts because we see your name four inches away on the screen.

How precisely does this kill Atari, besides EA becoming more of a blasphemous behemoth?

[CharlieMopps]

Can this even be legal?  I mean, he basically quit EA... formed this investment firm and dumped $300 million (as stock) into BioWare/Pandemic... THEN, goes back to EA as CEO and gets EA to buy the company he has $300 million in stock in.  Next thing we'll see is Elevation Partners selling their stock in Bioware and making a crapload in profit.  Cant be legal, but I bet they'd find a way.

This whole thing just stinks to me.  Nothing good comes of any of this besides lining a few crusty old guys' pockets.  The wage-slaves and gaming industry all lose.  Not to mention some of the biggest games will probably be delayed releases now due to the fallout. (yet another reason why software lags so far behind hardware these days)

Of course it's legal, this crap happens all the time. My company provides stock sharing, so recently they created "special stock" which basically means "stocks that have no votes" and thats what they give us now. They were afraid their employees might get a little uppity and take over the company or something. lol I need a new job.

[Trippy]

Hey, whadaya know... EA's CEO already had $300 million of his own money invested in Bioware and Pandemic.

http://blogs.mercurynews.com/aei/2007/10/electronic_arts_buys_biowarepandemic_for_860_million-2.html

That $300 million was Elevation Partners' money of which some fraction was his own.

Can this even be legal?  I mean, he basically quit EA... formed this investment firm and dumped $300 million (as stock) into BioWare/Pandemic... THEN, goes back to EA as CEO and gets EA to buy the company he has $300 million in stock in.  Next thing we'll see is Elevation Partners selling their stock in Bioware and making a crapload in profit.  Cant be legal, but I bet they'd find a way.

Read the article.

[Soln]

Really though, as long as the talent at Bioware got some of the phat lewtz from this takeover is it a bad thing?  Now those guys have the money to go out and try to form their own studios and shit right?  There's nothing that forces them to stick w/ Bioware now that it is owned by EA esp. once the great evil shitcans their MMO for not being Madden enough.

Just thinking out loud..  I don't track this kind of stuff often.

I wish it was that simple.  Lets face it this is the age of no-compete agreements, I bet most if not all of the key talent in Bioware has no-compete agreements which last years.  All hail the fascist age where you get the pleasure of selling your souls to parasitic corporations like EA for the privilege of working in the sweat shop.

Those sorts blanket non-compete agreements are not valid in California.

nor in Canada, where Bioware's HQ is.  And Pandemic's I think is in Brisbane, which is also in an other country.  And while EA's HQ is in Redwood CA, their locus is still in Burnaby, BC, Canada.

Thing is, people have a way of being intimidated and shoved into rough corners in the consumer software industry without legal threat.  It's often not necessary.

Edit: also, of course it's legal for some founder or exec to quit, make a startup and then sell it back to his fomer company.  Happens all the damn time.  And yes, often it's not startup's and yes it's often very sleazy how it seems.  But it is legal, not speaking as a lawyer, but as someone who's lived a couple of times through that scenario as a manager.

[Johny Cee]

Your post doesn't make any fucking sense, newfish.

Is this where we bet cigarettes on which new fish is the first to cry?

[Salamok]

Screw Atari, if EA continues down it's current warpath then the next logical purchase would be funcom.  Then it releases all 3 MMO's (or is that 4 counting funcom's mystery alternate history game/mmo) and hopes one of them is the WoW Killer lottery ticket they are looking for.

Edit: I would also say Flagship is a target but Hellgate already has $$ painted all over it and I doubt they are in need of any additional capital to make it through the rest of this month to release.  So with a big payday just around the corner I think they would rather see it through as creators/owners instead of cashing in now.

[Schazzwozzer]

A few articles and interviews popped up overnight.

Jakub over at Firing Squad, who is located in Edmonton, has some "insider views".  There are no names named, but it's not hard to imagine he has a few sources at Bioware.

Gamespot has an interview with the two doctors at Bioware.

GameDaily has an interview with both the head Pandemic guys and the Bioware doctors.

Another Pandemic interview, at 1Up.

The takeaway message seems to be that it's all this Riccitiello guy.  He supposedly wants to turn EA into something that isn't an entirely soulless money machine, and the optimists are saying, "okay, let's give this guy a chance".

edit: looks like all of these were in fact posted yesterday, but wuteva.

[Ghambit]

Your post doesn't make any fucking sense, newfish.

Is this where we bet cigarettes on which new fish is the first to cry?

Don't worry... I wont let him corner me in the laundry room   

[murdoc]

When is EA just gonna release their own console?

[Riggswolfe]

EA just bought up a tiny fraction of the gamespace - partly from a developer who was throwing a desperation pass (imo), with Mass Effect.

Ok, I know you love jrpgs, but just because something is not one does not make it a "desperation pass". Jesus.

As for the rest of this: FUUUUUCCCCKKKKKK!!!!!

This is literally the worst gaming news I have heard since Black Isle closed down and Origin became nothing but a machine to make UO expansions. Seriously. If EA fucks up Bioware like they do everything else then the RPG market just got a lot shittier. *sighs*

[Righ]

So, color me stupid but why does everyone think that EA buying Bioware automagically means their unnamed MMO is cancelled?

I can't speak for everyone, but I'll tell you why I think that it means this. HeroEngine. Sure, they could buy Simutronics or live with the existing licensing. But I doubt that they will.

[Ixxit]

When is EA just gonna release their own console?

Maybe they can buy Infinium Labs and this can rise from the ashes:

[AcidCat]

3. WARHAMMER or Bioware MYSTERY TITLE will see the light of day. One studio will engulf the studio of the other.

Of course I don't have your "leet insider infoz" but I would be really suprised if this happens.

[Mrbloodworth]

When is EA just gonna release their own console?

Maybe they can buy Infinium Labs and this can rise from the ashes:

Other than nothing, what happened to that thing?

[Ixxit]

Other than nothing, what happened to that thing?

http://en.wikipedia.org/wiki/The_Phantom_(game_system)

On February 21, 2006 it was reported that The Phantom video game console has been delayed indefinitely "pending further funding

As of August 15, 2006, the Phantom Console is not listed on the Products page of the website and has been cancelled. However, the Phantom website does indicate that a software component of the Phantom, the Phantom Game Service, is now under development for the Windows XP operating system.

Heh, still remember the bruisings the Hardocp gave them everytime they came out with a press release.

[Hoax]

3. WARHAMMER or Bioware MYSTERY TITLE will see the light of day. One studio will engulf the studio of the other.

Of course I don't have your "leet insider infoz" but I would be really suprised if this happens.

You shouldn't be, EA are the fucking Kratos of game cancellations.

So I was playing some GoW1 the other night, fuck you guys.

[MarkJacobs]

All,

   Crying?  Hardly.  I can't talk about the details (obviously) but I am certainly not crying over this deal nor did the deal come as a surprise to me.  I'm really excited about having BioWare as part of EA (I know the Pandemic guys by rep only) and I can tell you that there is plenty of room for both BioWare's MMO and our MMO.  In terms of BioWare's talent, I've cited KOTOR as one of my favorite RPGs of all time in panels, EA meetings, etc. and having, IMHO, the premier RPG developers in the industry (and I've spoken with them several times over the years) as part of EA is fantastic.  Thinking that either MMO is going to be canceled because of this deal makes no sense whatsoever.  Quite the opposite actually.  I don't expect to be believed by everybody about this, but just wait and see what happens, it's going to be great for EA, Mythic, BioWare and the players.  As has been made clear in the articles that have been posted since the deal was announced (one reason I waited till today to post), nothing changes for Mythic and all of BioWare reports directly to the head of the Games Label, Frank Gibeau, the same guy I report to.  Perfection.

   Since the Mythic acquisition I've talked about how EA has never once said to me that I must put in a certain feature or support things like item sales in WAR or in-game advertising, etc.  They have allowed us to make the game our way.  If they allow us to do that, it is illogical to assume that having paid a lot more for BP, that they would give them less freedom than they give us.  I can imagine that they will be allowed to succeed or fail based on their talent just as we are.  John R. is anything but stupid and he would not buy two of the premier developers in the industry just to mess with them.  Just like I've said about Mythic, if they fail with their games, then that's the time to start to worry.  Until then, thinking that this deal means the end of what makes BioWare and Pandemic such great developers flies in the face of logic as well as how they have treated us since our acquisition.  JR and company have just landed a deal which will help determine his legacy at EA and anyone who thinks that he came back to fail, doesn't know him at all.  I can't guarantee that BP will always succeed just as I can't guarantee that Mythic will always succeed.  I can guarantee one thing however, the BP will be given the chance to succeed just as we have been given the chance to succeed.

   Believe what you will but you don't pay this much money for a couple of developers just to blow them up, mess with them and kill the golden goose. 

   And if anyone starts screaming Origins, Westwood, etc., check all the facts first before posting.  The same things I said when EA bought us is just as true today.


Mark

[schild]

Mark, I'm just going to say the obvious.

People always wait and see with EA.
And it always ends badly.

And they constantly kill golden geese. A goose can't catch a football.

But hey, maybe ostriches can.

[Soln]

Until there's something for retail both WAR and Bioware's still unannounced MMO (stil!) are just theory.  When those teams reach GM, then players will be less skeptical. 

[MarkJacobs]

Schild,

   LOL, I'm many things, never been compared to an ostrich before.  Kinda not my personality but you would have to be here to know that.  Maybe I'm wrong and everyone is lying to me but that would fly in the face of the people who I've come to know and what I know about the same people from doing my own due diligence.  Who knows what will happen down the road but for now (and I've been part of EA for 16 months) they've lived up to my expectations.  Nothing is ever 100% wonderful (didn't expect it would be) and it certainly wasn't that way as an independent but so far, no secret implants, no attempts to hijack the studio or the game design just the usual stuff of being part of a large company.  And let me tell you, my nose and, at times, my neck is stuck into lots of places but never, ever the ground.


Mark

[Yegolev]

I'll agree with the notion that this will make or break Riticello.  There's a new sheriff in town, so old ways might not persist today.  However, I will also say again: Welcome to Big Business, the Cake is a Lie.

[Murgos]

And let me tell you, my nose and, at times, my neck is stuck into lots of places but never, ever the ground.

Mark

How's the beta going?   

[shiznitz]

schild's observation about EA's history is spot on. However, their new CEO has claimed he wants to do things differently so it could be different this time. I am not holding my breath, though.

[schild]

You mean the guy that worked at Microsoft and engulfed companies and destroyed them. He'd have no interest in having Mythic fucked with because they killed off Mythica with a frivolous lawsuit.

[Hoax]

Mark, I'm just going to say the obvious.

People always wait and see with EA.
And it always ends badly.

And they constantly kill golden geese. A goose can't catch a football.

But hey, maybe ostriches can.

So you are still alive, I thought between SOE and the cyst we had lost you.. Good post.

To be fair though, its not Mr. Jacobs fault that he's stuck in a situation few developers seem to escape intact from.  Here's hoping WAR is a great game.

The fact is though, Gamesworkshop has sunk lower and lower over the last five or so years so I'm really not going to be bothered to get excited by a product involving Mythic (DAOC balance 4tL, also coining the phrase RvR and pretending it means something special was pretty lame) EA (fucking evil) and Gamesworkshop (you used to be cool).


I would however like to bet Mr. Jacobs that Bioware's MMO never sees the light of release, state your terms ($1,000 or less please).

[MarkJacobs]

Hoax,

   Love to.  Here are my terms for the bet:

1) If the MMO that BioWare is working on never sees the light of day, I will post a full page apology for being a total monkey-boy for having faith in the wrong people.  It will, as always with me, be posted under my real name.  The apology must be well-written and contain lots and lots of wonderful language that makes me look like a complete idiot.

or

2) If the MMO does see the light of day, you will do the same and under your real name and state of residence, approach the apology from the perspective of being a totally cynical SOB, overly-jaded, etc.

As to the site of posting, if you don not to spend any money (which is fine by me), we can pick a site (here would be fine if Schild, etc. are okay with that?) or pick the newspaper of your choice and we can run it as an ad.

Work for you? :)

Mark

[Abelian75]

This is getting interesting.

[SnakeCharmer]

An observation by someone that has been apart of two companies that were bought out by bigger companies:  The one getting bought up ends up with all the leverage.

So, past experience with such things actually leads me to believe that it is WAR that will never see the light of day, and NOT the unnamed fantasy DIKU clone that BioWare is working on.

Carry on pontificating.