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EA Partners to Close?

The EA Partners label is being shut down soon according to a rumor on GameInformer they say comes to them by way of "multiple anonymous sources close to the matter." This contract publishing service for indie developers was involved in the release of many successful titles, including the Crysis series, Syndicate, Brütal Legend, Rock Band, The Orange Box, and Bulletstorm. They also note that 38 Studios' Kingdoms of Amalur Reckoning was part of this program, adding: "Whether EA was owed money by Curt Schilling's studio, and if so, how much, remains unknown." They say the two high-profile games still in the works at EA Partners are Respawn Entertainments' project (Titan?) and Insomiac's Fuse, and their sources tell them this move will not affect the release of either game. They also raise the salient question of how what they describe as a "lean operation of 50 employees" that "thrived on low overhead" which "capitalizes on EA's core publishing competencies and relationships" could have been a drain on company resources.

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27. Re: EA Partners to Close? Apr 25, 2013, 18:44 RollinThundr
ASeven wrote on Apr 25, 2013, 17:42:
Creston wrote on Apr 25, 2013, 16:31:
Beamer wrote on Apr 25, 2013, 13:18:
At this point, the only thing that probably would make sense for EA to do is find a way to go private.

Is that even feasible for them, though? I doubt they have anywhere near enough cash to buy themselves into the majority, and otherwise it just means they'd have to get a major investment venture to buy their majority stake and they just become beholden to said investment capitalists rather than the shareholders at large.

They are fucked either way. Their stock prices have plummeted and have not recovered since but, as you say, if they go private they will need to borrow such an insane amount of capital to buy themselves into a majority position that they might as well shut themselves off and save a lot of trouble.

And the beauty of all of this is that they have nobody to blame but themselves. Honestly, I believe we're starting to see the first steps of the publisher crash as publishers suddenly realize that they cannot support their business model for much longer and see themselves starved for capital which they cannot afford or create.

but but muh record profits! The industry is fine! /sarcasm
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