Electronic Arts plans to acquire Mythic Entertainment in a move that analysts said Wednesday could bolster the game giant’s position in the rapidly expanding universe of massively multiplayer online games.
plans to acquire Mythic Entertainment in a move that analysts said Wednesday could bolster the game giant’s position in the rapidly expanding universe of massively multiplayer online games.
The purchase gives EA access to Mythic’s 175-person development team. The company will be renamed EA Mythic and operated as a wholly-owned subsidiary dedicated to developing MMO titles. The companies didn’t disclose financial terms.
Mythic produced 2001’s Dark Age of Camelot and is currently working on Warhammer Online, a fantasy-themed title scheduled for release in 2007.
Warhammer OnlineRelatively speaking, the Mythic purchase is small potatoes. In December, EA threw down a hefty $680 million for Jamdat, in an effort to establish itself in the mobile gaming space (see EA Buys Jamdat for $680M).
EA Buys Jamdat for $680M“This is a nice, small, bite-sized acquisition,” said Michael Pachter, an analyst at Wedbush Morgan Securities. He estimates EA will pay somewhere around $80 million for Fairfax, Virginia-based Mythic. What’s more important, Mr. Pachter said, is thinking about the bigger picture when it comes to EA’s strategy—developing markets overseas.
Asian Focus
The Asian gaming market is seeing the emergence of strong players like NCSoft, Webzen, NetEase, and Shanda Interactive Entertainment. “[EA] may have a strategy to buy a portal,” said Mr. Pachter, pointing to NetEase or Shanda. NCSoft has seen success with fantasy-themed titles like Lineage and Guild Wars.
Guild Wars“Before Warcraft, NCSoft was the leader,” said Mr. Pachter. “If you’re going to try to exploit the Asian market, you might give some credence to Asian games.”
WarcraftMr. Pachter is referring to World of Warcraft, produced by Vivendi Universal subsidiary Blizzard Entertainment. Since its release in November 2004, the game has become the market’s undisputed heavyweight and a giant target for competitors.
Vivendi UniversalWarcraft currently boasts some 6.5 million paying subscribers. It crossed the 5-million mark in December (see WoW Boasts 5M Paying Gamers).
Nonetheless, Mr. Pachter said, the Mythic move gets EA access to a company that has experience developing an online game in a fantasy-themed realm. Warcraft-killer or not, Warhammer could net the company a few million dollars if it can attract even a tiny fraction of Blizzard’s titanic subscriber base.
WarhammerMythic co-founder and CEO Mark Jacobs will become vice president and general manager of the studio. Rob Denton, the company’s vice president, chief operating officer, and co-founder, will continue in the same roles.
Contact the writer:ROlson@RedHerring.com