Microsoft might Acquire Epic Games

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BradG

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Jan 20, 2008
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Could Microsoft Acquire Epic Games? GamePro Editor Thinks So

Posted: Today at 7:59 a.m.

RESEARCH TRIANGLE PARK – Will Epic Games be acquired by Microsoft?

As Epic’s management team heads west for the annual Game Developers Conference in San Francisco this week, GamePro magazine is predicting that Microsoft will buy the fast-growing game technology firm.

“Microsoft will buy Epic Games for $1 billion this summer,” wrote Travis Moses, assistant editor at GamePro, in the magazine’s new issue.

Epic and Microsoft are practically joined at the hip already. Microsoft’s game publisher division paid Epic millios of dollars to develop the award-winning “Gears of War” in November of 2006 for the Xbox 360 platform. Gears won multiple awards and sold several million copies. The online version of the game remains among the most popular on the Xbox Live network.

The two companies will be exhibiting at the GDC side-by-side. And speculation is quite strong that Epic may announce a Gears sequel.

However, Microsoft would be interested in acquiring more than game development in an Epic buy, according to Moses. Epic also licenses its Unreal game engine to developers around the world who produce titles for Xbox 360, PlayStation 3 and other platforms as well as PCs.

“Epic Games is one of the few highly regarded indie developers … partly for their games but mostly for their Unreal engine technology,” Moses wrote. “Microsoft has lots of cash on hand, and in buying Epic, could collect royalty rights for Unreal technology across other platforms.

“Given Epic’s tight partnership with Microsoft, along with widespread use of the Unreal engine, and this move makes a lot of sense, particularly in light of [Electronic Arts]’s Pandemic/BioWare merger [as] well as the Activision/Vivendi shockers.”

Microsoft already owns Bungie, the develop of the wildly popular Halo game franchise, so a deal for Epic would follow precedent.

Epic’s Unreal Tournament 3, its newest release, is currently under development for the Xbox 360 platform and is due to release in May, according to GamePro. As for a possible Microsoft acquisition – well, stay tuned.

http://www.wral.com/business/local_tech_wire/opinion/blogpost/2449264/
 

ambershee

Nimbusfish Rawks
Apr 18, 2006
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It would be good for Epic. Microsoft treat their developers quite well, and would allow Epic relatively free reign to develop and finish and polish their projects with a suitable budget and timeframe.

Microsoft are also pretty good when it comes to marketing high profile products. It'd be very beneficial for Epic.
 

Sir_Brizz

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Feb 3, 2000
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This is such an idiotic "guess". Way to go GamePro.

Microsoft buying Epic would mean terrible things for each and every engine licensee and it would be silly of Epic to even consider selling.

Microsoft would be good for their games, but would ultimately ruin them as a business.
 

Unknown Target

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Jan 22, 2008
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UT4 for the Xbox360 probably, then we only get it 2 years later and it requires Windows Live :(

Not to mention I'm sure licensees would definitely not appreciate it, as Sir_Brizz pointed out.
 

Jonathan

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Mar 19, 2006
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Microsoft to buy Epic Games?

Edit: Oops, posted here, :)
http://forums.beyondunreal.com/showthread.php?t=174868

http://www.videogamer.com/news/18-02-2008-7543.html
According to wral.com, GamePro magazine assistant editor Travis Moses believes Microsoft will purchase Epic Games this summer for the tidy sum of $1 billion.

"Microsoft will buy Epic Games for $1 billion this summer," wrote Moses. "Microsoft has lots of cash on hand, and in buying Epic, could collect royalty rights for Unreal technology across other platforms."

Epic Games is famous for the creation of the Unreal Engine, now in its third version, and the multi-million selling Unreal and Gears of War franchises.

Moses also notes that the recent acquisition of BioWare Pandemic by EA and the Activision Vivendi merger make Microsoft's acquisition of Epic Games even more likely.

Microsoft is expected to make some major announcements concerning its gaming business at GDC later this week, but we don't think we'll be hearing anything regarding the acquisition of Epic Games.
 
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RoninMastaFX

Unreal/UT Vet from Day 1
@Sir_Brizz

Do you think Microsoft is trying to buy out every single major sucessful copany so that they can run the world? :( Imho, I that's that's what they are doing.

And yes, the licensees would be pissed beyond relief. It would not only be be bad for the engine, the licencees, Epic itself, but the games run by the engine would suffer badly, and eventualyl, the Unreal Engine will slowly start to decipiate. I better hope not that Microsoft won't buy out Epic, otherwise...Bye Bye Epic! :(

@ Epic

Don't let Microsoft buy you out, they can help you, but I would'nt want to be run by them. :(
 

dub

Feb 12, 2002
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"Epic and Microsoft are practically joined at the hip"... yet they still can't reach an agreement on UT3's implementation on the Xbox360 regarding MS stance on having a closed network. :rolleyes:

Also, I thought Bungie got themselves out of their MS ownership?
 

Sir_Brizz

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Feb 3, 2000
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I really think that a purchase by Microsoft would spell the end of Epic Games.

First, their engine license sells because it is very portable. Add MS to the equation and you get each new iteration exclusively on 360 for two years, then available for PC for a while and never coming to PS3. This would immediately make their licensee count drop (and maybe even constitute a breach of contract for current licensees?) and ruin their public image. Just look at how the majority of non-casual gamers think of Bungie (even now that they are no longer owned by MS).

Second, while their games would get star treatment, they would have significantly less content and features and post-release support would drop to virtually nothing. How many MS games have you seen release free content 6 months after the game came out?

And finally, it will simply destroy their reputation with every single corner of their fanbase. Nobody would be left to "defend" them.

I simply don't think Epic, as a company, could survive something like that. While I think this guy is talking out of his butt and there is no way this could happen, I've also thought that in the past about certain things and been proved wrong. If this happens there is going to be a very distraught and alienated community.
 

Jonathan

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Mar 19, 2006
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And we think Gamespy is bad, wait until all Epic products are "Windows-Live enhanced" :)
 

hal

Dictator
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Nov 24, 1998
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This is really bad blogging being passed off as journalism. At least LTW had the decency to put lots of question marks in the article.

Has anyone seen the GamePro issue to know the context of the quotes?
 

Iron Archer

Holy ****ing King of Trolls
Mar 23, 2000
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Epic should just bite the bullet and actually hire more people and remain autonomous, instead of become someone's bitch in return for a short term monetary incentive. Becoming part of something else in my opinion is not thinking big. With their engine, Epic has all it needs to grow it's brand and open branch developers under the Epic name and become a rival to companies such as EA and UbiSoft. Most of the companies use Epic's engine, so it would make more sense for Epic to purchase developers to become part of it's stable and not the other way around. If it happens, oh well. It's just games... wont' change my life.