this post was submitted on 30 Sep 2025
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The buyers are committing $36 billion of their own equity (briefly and inexpertly, "equity" is the value of your assets after you deduct anything you owe), including the value of the PIF's existing investments in EA. They're making up the rest of the total thanks to a $20 billion loan from JPMorgan Chase Bank. How will they manage that massive debt? According to the Financial Times, who cite unnamed insiders, they're gambling on the deployment of generative AI tools as a gigantic cost-saving measure.

"The investors are betting that AI-based cost cuts will significantly boost EA's profits in the coming years, people involved in the transaction told the Financial Times," the paper wrote (paywall) in their own coverage of the story. The FT elsewhere commented that the acquisition "is a huge bet that artificial intelligence can significantly cut EA's operating costs, allowing the equity consortium to manage a large debt load on a company that historically carried limited net debt."

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[–] samus12345@sh.itjust.works 12 points 3 days ago* (last edited 3 days ago)

Kind of a strange bet to make when AI use has been going down in large companies lately. Hope EA goes down as well.

[–] LadyAutumn@lemmy.blahaj.zone 9 points 3 days ago* (last edited 3 days ago) (8 children)

This is assuming people will pay money to play AI slop. These companies continue to vastly overestimate the value of AI produced content. It might be passable on like, bags of candy, maybe even occasionally passable on like free webcomics. And low quality website design. Maybe some simple cash grab mobile games that get taken down after a couple weeks due to the obvious scams.

But paid video games? Which theyre already charging absurd prices for? No. This bubble will burst and companies that continue producing actual games will come out ahead. Companies that are foolishly going all in on entirely unproven technology will crumble.

[–] LustyArgonianMana@lemmy.world 4 points 3 days ago* (last edited 3 days ago)

It's probably AI videos games made by AI for AI to play. People need to do stuff like mining and growing organs, they can't do anything nice anymore like play games

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[–] se7enfeet@lemmy.zip 4 points 2 days ago (1 children)

Game quality from this company will be absolute dogshit ai slop

[–] No_Eponym@lemmy.ca 1 points 2 days ago (1 children)

How many EA games require you connect to their servers just to play? How many have ToS where you need to install any updates before you play? How long before these PE folks figure out they can push updates to even older games that add data mining capacity?

[–] se7enfeet@lemmy.zip 1 points 1 day ago

At this point EA is a slur and is not allowed in my home

[–] Diplomjodler3@lemmy.world 9 points 3 days ago (1 children)

What a fantastic plan. Nothing could possibly go wrong.

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[–] AllNewTypeFace@leminal.space 9 points 3 days ago (2 children)

Also, a bet on consumers being willing to pay AAA prices for slop

[–] djsoren19@lemmy.blahaj.zone 5 points 3 days ago

They already do, the only difference is now the slop will be made by AI instead of underpaid developers in Romania.

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[–] Noise7@lemmy.world 7 points 3 days ago

Hahaha sure, let them do that.

I always hated them anyway. Good riddance.

[–] TwinTitans@lemmy.world 7 points 3 days ago

They’re also betting on people buying this crap. Hopefully they don’t.

[–] stringere@sh.itjust.works 1 points 2 days ago

Maybe private equity will do to EA what they did to Toys'R'Us!

[–] morphballganon@lemmy.world 1 points 2 days ago

I will gladly take the customers EA loses

[–] BuboScandiacus@mander.xyz 4 points 3 days ago
[–] EdanGrey@sh.itjust.works 5 points 3 days ago

Well now, I'd already basically given up on EA, glad I made the right choice

[–] BlameTheAntifa@lemmy.world 4 points 3 days ago
[–] Fiivemacs@lemmy.ca 5 points 3 days ago (1 children)
[–] CrabAndBroom@lemmy.ml 3 points 3 days ago* (last edited 3 days ago)

Just sitting here playing the long game, waiting for EA to finally implode and get sold off for parts so we can finally get a new Command & Conquer.

[–] CyberSeeker@discuss.tchncs.de 5 points 3 days ago* (last edited 3 days ago) (2 children)

Vibe coding is one thing, but I am curious about the state of using of AI tools to reduce the cost of generating 3D assets, animations, and textures. I assume they are introducing this into Ignite and their other build tools, for more rapid prototyping if nothing else.

[–] CrabAndBroom@lemmy.ml 6 points 3 days ago

My first thought was they'll probably use it to generate endless slop assets for The Sims, since people seem to pick up whatever they put out for that.

[–] Hackworth@sh.itjust.works 4 points 3 days ago

For 3D model generation, I've played with Hunyuan3D, Tripo and Trellis. The models they make are impressive, but not production-usable. You'll spend enough time cleaning them up that you may as well make them the old fashioned way.

Most of the benefits of generative image models are already baked into Photoshop. While helpful, not something that's going to give them a competitive advantage.

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