this post was submitted on 30 Sep 2025
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The buyers are committing $36 billion of their own equity (briefly and inexpertly, "equity" is the value of your assets after you deduct anything you owe), including the value of the PIF's existing investments in EA. They're making up the rest of the total thanks to a $20 billion loan from JPMorgan Chase Bank. How will they manage that massive debt? According to the Financial Times, who cite unnamed insiders, they're gambling on the deployment of generative AI tools as a gigantic cost-saving measure.

"The investors are betting that AI-based cost cuts will significantly boost EA's profits in the coming years, people involved in the transaction told the Financial Times," the paper wrote (paywall) in their own coverage of the story. The FT elsewhere commented that the acquisition "is a huge bet that artificial intelligence can significantly cut EA's operating costs, allowing the equity consortium to manage a large debt load on a company that historically carried limited net debt."

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[–] vane@lemmy.world 10 points 5 hours ago (1 children)

This will be fun to watch. Maybe not for 14 500 EA employees. I kindly suggest them to leave as soon as possible.

[–] buddascrayon@lemmy.world 5 points 4 hours ago

Indeed. I think it would be in their best interest to find work elsewhere before they end up getting laid off at the most inconvenient time.

Beyond that it should be amusing to watch this company go down in flames.

[–] Siegehammer85@lemmy.world 8 points 5 hours ago* (last edited 5 hours ago) (1 children)

I just uninstalled EA launcher because it's a fucking cancer and I see this afterwards... If it's not on Steam it's piracy material from here on out. Fuck all other launchers/services except GoG, GoG is cool too.

[–] wrinkledoo@sh.itjust.works 12 points 12 hours ago

So now EA has been acquired and will become a shell of it's former self.

Ironic.

[–] fodor@lemmy.zip 0 points 5 hours ago

Haha what a shit headline. But hey, why not blame it on AI? Maybe the suckers getting played won't realize it's just the same old PE scam.

[–] ApollosArrow@lemmy.world 6 points 12 hours ago

Looks like the monopoly on sports video games is ending soon.

[–] M0oP0o@mander.xyz 7 points 13 hours ago (1 children)

Ah so we can see EA do a Kmart. Neat

[–] Tar_alcaran@sh.itjust.works 6 points 7 hours ago

EA being on the recieving end of what they've been doing to others for years

[–] se7enfeet@lemmy.zip 3 points 12 hours ago

Game quality from this company will be absolute dogshit ai slop

[–] frezik@lemmy.blahaj.zone 35 points 20 hours ago (2 children)

This is a very longwinded way to say "EA will die in a few years".

[–] VitoRobles@lemmy.today 10 points 20 hours ago

"I don't care who wins. I just want EA to lose." Star Wars guy

[–] LustyArgonianMana@lemmy.world 5 points 17 hours ago

This, they destroyed the art of US video games because it was promoting bad values like gay marriage in The Sims

[–] mindbleach@sh.itjust.works 14 points 17 hours ago (1 children)

'We bought you, you owe us money' is theft with more steps.

[–] Natanael 6 points 17 hours ago

In the example of Toys'r'us, it ends up being theft against other creditors, suppliers, workers, etc, who end up not getting paid when it collapses.

In bankruptcies the entity who introduced the debt should be liable for it (the new parent company)

[–] Zedd_Prophecy@lemmy.world 15 points 17 hours ago (1 children)

There's a huge bet that most of us are going to boycott this tomfuckery and do no further business with EA.

[–] bytesonbike@discuss.online 5 points 14 hours ago (1 children)

Already have.

Unfortunately, will the EA Sports fans and Battlefield fans do the same?

[–] tea@lemmy.today 5 points 12 hours ago (1 children)

If they hadn't left already, they never will.

FIFA and Madden have been dog shit iterations for years and years and people keep buying them. Plus Battlefield 6 might actually be good and will test plenty of people (like me) who said "never again" long ago. Luckily I probably won't actually be tempted because of EA anti cheat and Linux incompatibility.

[–] SaneMartigan@aussie.zone 1 points 7 hours ago* (last edited 7 hours ago)

I was all up for BF6. It releases in two weeks. A bunch of friends are going to get it. I was a bit annoyed that it was the only reason I'd still be using windows11 but I was prepared to wear it. But Jared Kushner, Trump's son-in-law, fuck.that.noise. No way am I giving that cunt anti-cheat access to my computer.

[–] Damage@feddit.it 16 points 19 hours ago (1 children)

I have an hard time believing multiple investment funds can be so clueless.

[–] 01011@monero.town 7 points 18 hours ago (1 children)

Why not? Were you alive 17 years ago? Have you already forgotten how much money Madoff took? How much money was lost to the subprime ponzi?

[–] Damage@feddit.it 1 points 7 hours ago

I was very alive 17 years ago but on a different continent from where whatever you're describing happened

[–] scottmeme@sh.itjust.works 17 points 20 hours ago

EA Sports It's in the slop

[–] Jhex@lemmy.world 22 points 21 hours ago (1 children)

I can't wait for this "investment" to go so down the drain for them...

[–] UnderpantsWeevil@lemmy.world 11 points 20 hours ago (3 children)

A lot of what this means is a pivot to the highest yield games. So... more GACHA and other lootbox style gaming. Cheaper assets, more redundancy in levels, shorter and cheaper cut scenes, etc.

But this is normal operating procedure in a bust-out style business model. EA's going to be boiled down and stripped just like so many prior studios, from THQ to Bioware.

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[–] Darkcoffee@sh.itjust.works 78 points 1 day ago (3 children)

Might as well consider EA dead.

[–] whyNotSquirrel@sh.itjust.works 31 points 1 day ago (3 children)

On paper EA being dead is good, but I'd like it to be dead and without parasites making money off of the corpse.

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[–] Grandwolf319@sh.itjust.works 45 points 1 day ago (2 children)

EA can always keep printing money by putting out the same sport games every year, how the fuck did they get into $36 billion debt? I’m not even mad, that’s impressive.

[–] SSUPII@sopuli.xyz 1 points 6 hours ago* (last edited 6 hours ago)

As someone who understands the differences between soccer games I can tell anyone who actually gives a fuck about soccer game quality and is not gacha addicted will confirm current FIFA/FC is utterly shit.

They are probably paying billions in so many teams and players licensing while everything has miniscule improvements or even removing stuff (like Volta game mode).

Every year EA is reporting lesser and lesser profits from the FC series, and doesn't help that after the first weeks the yearly games start rotting in store shelves while asking 60+ Euro. They make money from the whales spending salaries on player card packs on FUT, and they are quite angry too. Konami is down the corner gaining more and more revenue and users yearly from the FC refugees (not that f2p eFootball is good either).

[–] jlh@lemmy.jlh.name 45 points 1 day ago (4 children)

The $20B was printed by JPMorgan Chase bankers so that Jared Kushner and the Saudis could buy EA at 45% off. In return, the saudis promise that they can siphon $20B from fired workers back to the bankers over the next ~10 years.

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[–] heavy@sh.itjust.works 18 points 23 hours ago (1 children)

Hope their IP gets sold to other companies. Would love to see another wing commander in my lifetime.

[–] SkyezOpen@lemmy.world 25 points 21 hours ago (4 children)

I have good news and bad news on that front. The good news is that the original wing commander dev is making a spiritual successor to the game. The bad news is that it's star citizen.

[–] kboy101222@sh.itjust.works 10 points 21 hours ago
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[–] LadyAutumn@lemmy.blahaj.zone 7 points 19 hours ago* (last edited 19 hours ago) (2 children)

This is assuming people will pay money to play AI slop. These companies continue to vastly overestimate the value of AI produced content. It might be passable on like, bags of candy, maybe even occasionally passable on like free webcomics. And low quality website design. Maybe some simple cash grab mobile games that get taken down after a couple weeks due to the obvious scams.

But paid video games? Which theyre already charging absurd prices for? No. This bubble will burst and companies that continue producing actual games will come out ahead. Companies that are foolishly going all in on entirely unproven technology will crumble.

[–] djsoren19@lemmy.blahaj.zone 8 points 18 hours ago (5 children)

I mean... you're talking about the company that makes billions of dollars a year on FIFA games, which are already only one step removed from AI slop. I don't seriously think EA's customer base will care; the quality of the games made by EA is already low enough that I don't believe the use of AI will move the needle. And honestly, will anyone care if it's AI updating the rosters and title to FIFA 26? I guess I feel bad for the working devs putting food on their table, but is that the job that want?

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[–] pulsewidth@lemmy.world 25 points 1 day ago

EA's output of middling products filled with aggressive microstransactions is about to be bolstered with.. heavy use of AI slop?

I'm looking forward to watching this bankruptcy speedrun.

[–] Fedizen@lemmy.world 11 points 22 hours ago

They're over leveraged on AI so they're trying to create markets for it, lol. Jesus christ this economy is a ponzi scheme

[–] samus12345@sh.itjust.works 11 points 22 hours ago* (last edited 22 hours ago)

Kind of a strange bet to make when AI use has been going down in large companies lately. Hope EA goes down as well.

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