EA Consolidation Talks Reflect Industry Shift Towards Live Services and Declining New Game Purchases

Major gaming giant Electronic Arts (EA) is allegedly in discussions for a possible move into private ownership, according to reports by Bloomberg’s Jason Schreier. The potential shift could be indicative of broader concerns within the industry, as video game companies seem to be leaning towards consolidation.

Schreier highlights that gamers in recent years have shown a preference for sticking with established favorites rather than exploring new titles. This trend is reflected in EA’s fiscal year 2025, where 75% of the company’s revenue comes from live services as opposed to new purchases.

Analyst and co-founder of Spilt Milk Studios, Nicholas Lovell, told Schreier that the industry appears to be transitioning from a period of innovation to one where consumers are increasingly relying on repetitive spending in familiar games. Lovell further speculates that EA executives might view the reported $50 billion acquisition price as representing the company’s “peak valuation,” given the industry’s impending shift where profits continue to rise but valuations begin to decline.