EA Buys Titanfall Dev Respawn Entertainment For $455 Million, Outbids Nexon
Electronic Arts, one of the biggest video game publishers has just announced via press release that they have purchased Respawn Entertainment - the video game development studio founded by ex-Call of Duty developers - Jason West and Vince Zampella. Respawn is also the developer of Titanfall video game franchise and are currently working on the third installment in the series and a yet-to-be-titled Star Wars game.
In a press-release send to Gamepur, Electronic Arts stated that this deal between them and Respawn is worth $455 million and it includes everything - cash, equity and performance milestone payments. According to the details revealed by a source close to Kotaku, Electronic Arts outbid Nexon - the South Korean Video Game Publisher (and also the current publisher of Titanfall mobile game).
Respawn Entertainment so far has a pretty good track record - all their previous games were published by Electronic Arts which means they have a good working relationship with the publisher and Team Gamepur expect them to grow even further from here as they are currently handling two of the biggest projects in Electronic Arts - Titanfall 3 and a new Star Wars video game.
The first game of Titanfall series was released as an Xbox exclusive game, and it managed to create a lot of buzz in the FPS shooting genre, but the same can't be said about the Titanfall 2 even though it released on multiple platforms including PlayStation might be due to the fact that Electronic Arts decided it to release it in between Call of Duty and Battlefield - two of the established video game series.
Read a Letter from Vince Zampella on this big decision and how things are going to change at Respawn Entertainment from here on via a FAQ and A Letter from Vince:
We started Respawn with the goal to create a studio with some of the best talent in the industry and be the #1 developer of innovative games in the world. We've had success as an independent company but as we look to how we want to compete in the future, and the challenges that face us in a rapidly changing landscape, now is the time for us to combine forces with a global industry leader like EA.
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. EA will provide us with more resources, access to new technologies, and expertise that we can tap into to that will help us make better games, and Respawn will retain the same creative freedom and culture we've always had. We've been talking closely with the leadership at EA and we share their values and vision for the future of being a developer-focused company that puts the players first.
I will still be running things at Respawn and will also be a part of the studio leadership team at EA. There will be no layoffs or major organization changes within Respawn. All games currently in development are continuing as planned.
This is a great next step for Respawn, EA, and our players. Joining with EA will give us the resources and support we need to grow and have long term success while still keeping our culture and creative freedom. We believe this is an opportunity to achieve more together through the unique strengths we each bring to the table.
Q – What's going to happen to Titanfall?
- A – Titanfall is and will remain a major part of our studio's DNA. The Titanfall team is continuing to work on the franchise.
Q- What's going to happen with Star Wars?
- A – Respawn will continue to work on our Star Wars game. Development is going well and we have a great relationship with Lucasfilm.
Q – How will the merger affect Respawn?
- A – There will be no layoffs or major org changes and titles currently in development will continue uninterrupted.
Q – Why EA?
- A – EA will provide us with more resources, access to new technologies, and expertise in areas that Respawn values for future growth. Respawn will retain the same creative freedom we've always had. We believe in the leadership driving EA's trajectory to exciting areas that match our own goals. This is an opportunity to achieve more together through the unique strengths we each bring to the table.
Q – Did you make this decision because the company was in trouble?
- A – Not at all. This decision was made because it's the best way to get Respawn the resources, support, and knowledge we need to achieve our long term goals.
Q – What does this mean for new games beyond Titanfall and Star Wars?
- A – We will still have creative freedom to explore new IP's and will work with EA's studio leadership to plan future projects.
Q – Does this change Vince's role at Respawn?
- A – No. Vince will continue to run Respawn and will also become part of the studio leadership team at EA.