NEWS - Tuesday, February 26, 2008

What Would Happen to 2K Sports?





It’s still a bit early to speculate, but if EA does kill the 2K Sports brand, the behemoth known as EA Sports would be able to capitalize on the ever-important sports category virtually unhindered.

"Any integration starts with our respect for the teams and people that make great games. Beyond that, it’s too early to discuss plans for managing Take-Two," read an EA FAQ entry that inquired about whether EA would "kill off" 2K Sports if EA’s bid for Take-Two goes through.

The FAQ added, "It’s too early to discuss plans for managing and integrating the Take-Two team. What we can say is that EA’s new decentralized structure and Label-based model can give these teams the freedom and responsibility they need to continue making great games."

EA offered $26 per share, or around $2 billion to buy out the New York City-based Grand Theft Auto publisher on February 19. The publisher made the offer known to the public on Sunday.

While Riccitiello has been outspoken about how EA aims to preserve the talent that it acquires through buyouts, redundancies in the sports units could become a reality, as many of the sports titles overlap and streamlining such redundancies would be in the best interest of EA’s bottom line.

The inclusion of 2K Sports is one of the sweetest parts of the proposed deal, analysts say.

"It appears to us that the basis for this offer is primarily the synergies to be gained from combining Take-Two’s and EA’s sports businesses," Wedbush Morgan analyst Michael Pachter said in a research note Monday.

He said that Take-Two appears to be on track to generate $200 million in sports games sales for this calendar year.

"The mere existence of Take-Two’s sports games has caused EA to cut prices each of the last two years prior to the
holidays, while it historically held pricing until well after the holidays before Take-Two attempted to compete. Should the two companies combine, we believe that EA would grow its sports revenues by around $300 million annually," he added.

Lazard Capital Markets’ Colin Sebastian called "GTA and 2K Sports ... top attractions [that] could fill product gaps. ...Take-Two’s 2K Sports label publishes the only licensed Major League Baseball videogame, as well as a strong NBA title."

The 2K Sports label has yet to be profitable, although the unit expects to be "near breakeven" in fiscal 2008.


Site Statistics

Registered Members: 53,929
Forum Posts: 725,938
Xbox One Titles: 3,970
Xbox 360 Titles: 1,086
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 586
Original Xbox Titles: 987
Staff Reviews: 2,237
Member Reviews: 10,339
News Articles: 16,228
Screenshots: 35,855
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News

Rugby 22 Gets New Gameplay Trailer

Rugby 22 Gets New Gameplay TrailerThe presence of the Top 14, the Pro D2 and the United Rugby Championship is also confirmed. Fans will find all the clubs of these leagues, with their players and their official jerseys.

See News Archives

Community Forum Activity

2021: XBA is still here
Post by shrew king
12 Replies, 22797 Views

Watch Dogs: Legion
Post by Nato King
0 Replies, 44391 Views

Xbox Series X or S
Post by Nato King
5 Replies, 57423 Views

Spellbreak Grand Magus Pack (3) and Starter Pack (7) Giveaway!
Post by Variation-XBA
0 Replies, 53155 Views

I pay $ 1000! I search the Element 54 Canadian launch Team signaturen Faceplate
Post by Smill
0 Replies, 55655 Views

Xbox one no signal
Post by debrartin
0 Replies, 67315 Views

do you remember?
Post by SnoochyBoochy
3 Replies, 70146 Views

i haz xbox
Post by SnoochyBoochy
0 Replies, 57298 Views

Claiming the first thread of 2020
Post by Kraft
7 Replies, 97426 Views

Important! I pay $ 1000! I search the Sweden launch and the Element 54 Faceplate
Post by Smill
3 Replies, 57388 Views

Squad Up
Post by samslophead
0 Replies, 116704 Views

TERA Skinned Xbox One X Giveaway!
Post by Variation-XBA
0 Replies, 85229 Views

Starfield Release expectations?
Post by DJ tx
4 Replies, 154819 Views

Issue with Xbox live on Xbox home
Post by rcmpayne
0 Replies, 98002 Views

Happy Birthday, Me.
Post by SnoochyBoochy
4 Replies, 123944 Views

© 2000-2022 - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics