Tuesday, November 10, 2009

Electronic Arts bought Playfish!

Yupz Electronic Arts has bought Playfish, and from this CNA article it is at a hefty price tag (in my opinion).
for 275 million dollars in cash and 25 million dollars in equity retention arrangements for employees.

In addition, EA said it will pay up to 100 million dollars if the privately held Playfish reaches certain performance milestones through December 31, 2011.
Yeah that is a max of US$400 millions!

I must admit that Playfish has been a very innovative games developer, who has been able to track what consumers want and provides new features to the games. For example it has added features to prompt players to visit others in Restaurant City (in addition to other features).

Oh well, after Playfish, who next to be considered for buyout? Zynga? Zynga has also been rolling out new games that parallel many of other similar successful models (e.g. Cafe World). So yes I think it is time some of the bigger games company start to look at the new developers for some measures of consolidation in the industry.

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