Skip to main content

Pachter: EA deal should pay off

Wedbush Morgan analyst Michael Pachter has told <i>GamesIndustry.biz</i> that he believes the deal seeing Electronic Arts buy Pandemic and Bioware, should pay off - although there is some risk.

Wedbush Morgan analyst Michael Pachter has told GamesIndustry.biz that he believes the deal seeing Electronic Arts buy Pandemic and Bioware, should pay off - although there is some risk.

"It's a lot of money, which places more pressure on them to deliver revenues at the level that they have modelled - USD 300 million-plus per year."

However, given the output of the two studios in the past, he feels that it's possible - although future earnings can't necessarily be predicted based on the performance of the studios' past franchises.

"If Pandemic and Bioware continue to be as productive in the future as they have been in the past, revenues should easily hit the required level."

"However, much of their past revenue came from games like Neverwinter Nights, Baldur's Gate, and the Star Wars games. The first two franchises are somewhat tired and are PC-centred, while the last one will likely not be licensed by EA going forward."

"It's possible that either Neverwinter Nights or Baldur's Gate can be turned into MMOs, and both would likely do quite well, but neither Pandemic nor Bioware has had success in that area in the past - few have."

But overall Pachter seemed to believe that Electronic Arts would be on firm ground.

"I think it's likely that the deal will pay off, but there is some risk. In order to succeed, they will have to continue to generate great games. There's nothing to suggest that they won't."

Read this next

Related topics