Why is electronic art, video game is one of the biggest names in business, Allegedly in conversation to go private,
Jason Shreyar notes of Bloomberg These video game companies are moving towards consolidation and the deal can reflect wide concerns of EA officials on the future of the industry. After a period of rapid growth in the 2010s and during the epidemic, Shreyer said that in recent years Gamers have started living with older favorite instead of buying new titles. “
It is reflected in EA’s financial year 2025, with 75% of revenue coming from live services rather than new purchases. In fact, Nicholas Lavel, co-founder of analyst and spilled milk studio, told Shreyer, “We are going away from an era of breaking new ideas in the same game, spending money repeatedly.”
So Laval suggested that EA officials can see the company’s tag of $ 50 billion reports reported as the company’s “peak valuation”, as the industry enters a period where profits continue, but the evaluation starts declining.
