Wednesday, November 8, 2017

Electronic Arts Acquires Respawn Entertainment

Video game publisher Electronic Arts plans to acquire Titanfall series developer Respawn Entertainment.

Independent video game development studio Respawn Entertainment is known for their proficiency in making excellent games and is widely known for creating first-person shooter games like Titanfall, Titanfall 2 and Titanfall: Assault.

Apparently, big-name industry publisher company Electronic Arts also thinks the same. So, this Thursday, EA has officially announced that they have bought development studio Respawn to make kick-ass games for them from now on.

electronic arts buys respawn titanfall
Electronic Arts Acquires Respawn Entertainment

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According to recent press release, EA has spent about $151 million cash, another $164 million in long-term stocks and a variable earnout of about $140 million to Respawn for finalizing this deal, which could hit up to a total of $455 million.

Respawn is already working on a new Titanfall game, a virtual reality first-person combat experience project to release on 2019 for Oculus Rift and then there is an unnamed third-person action adventure EA game set within Star Wars universe.

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Here's what Vince Zampella, CEO of Respawn Entertainment has to say about this deal on a Blog post.

"While it wasn’t necessary, going with EA made a lot of sense. With Titanfall and Star Wars, EA has been a great development partner that supports us and doesn’t interfere with our process for making games or studio culture."

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For years, both EA and Respawn has been in a good business relationship and since the latter is more than capable of making big-bucks for them by producing great new games, they thought it would be wise to take the studio under their wings.

Studio founder Vince Zampella and Jason West were both former Activision employees, who were responsible for creation of iconic Call of Duty shooter franchise during their stint as executives at developer Infinity Ward.

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Back in 2010, Activision fired both West and Zampella after filing a lawsuit alleging that they were working to establish a new studio with Electronic Arts. It all came to settlement among these companies but West left while Zampella remained as CEO.

When Respawn is initially founded, EA has published their multiplayer shooter game Titanfall and it managed to blow everyone's mind. Then they eventually became more experienced and got craftier with its inevitable sequel; Titanfall 2.

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Only good news from this deal that is worth being joyful over is that, all current projects in development at Respawn will be continued uninterruptedly as it was going even after EA's takeover, since they recently shut down Visceral Games.

Most of time during a company takeover usually results in uncertain fate for current games on progress and job cuts for employees. Moreover, Respawn will now have access to EA's knowledge, resources, support and more creative control over their projects.