Deconstructor of Fun TWIG #351 EA Acquisition Analysis That Will Shock You
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Oct 3, 2025 In this discussion, guest Josh Chandley, President and COO of Wildcard Games, dives into the shocking $55 billion acquisition of EA by Saudi Arabia, marking a pivotal moment in gaming history. He analyzes Microsoft’s recent strategic moves and their implications for the gaming landscape. The conversation shifts to AppLovin's ambitious expansion into e-commerce, exploring how this could disrupt the market. Finally, they touch on Unity's challenges and prospects in the evolving ad tech arena. It’s a thought-provoking look at the future of gaming!
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Xbox Losing Its Distribution Edge
- Microsoft is eroding the hardware advantage by pricing consoles high and pushing PC-centric devices, which weakens platform distribution control.
- Eric Kress argues higher Game Pass pricing and losing retail presence signal a retreat from Xbox's gatekeeping strategy.
EA Deal Is Saudi-Led, Not Typical PE
- The $55B EA buy is not a classic hostile PE LBO; Saudi PIF drives the strategy with long-term building motives.
- Eric Kress emphasizes privatization reduces public comps and transparency, which is bad for the industry's liquidity and benchmarking.
Manage Talent And Incentives Carefully
- Expect targeted cuts but not mass 25–30% layoffs; preserve core talent for long-term rebuilds and studios that matter.
- Companies should re-incentivize employees thoughtfully because stock-based comp disappears after privatization.