Electronic Arts, the second largest video game producer, lowered its 2009 guidance and stated that it would cut jobs in order to reduce costs. The company plans to eliminate 6 percent of its workforce in order to save an additional $50 million annually.

Electronic Arts reported on Monday that it has withdrawn its offer to acquire Take-Two Interactive for $2 billion. This ends the company's five-month hostile take-over bid for the make of the Grand Theft Auto series. Electronic Arts stated that it withdrew its offer as the economics of the deal no longer made sense as EA was only looking to close a deal if they could complete the transaction in time... More

Electronic Arts offers a take over offer for Take 2 Interactive of 26 dollars a share or roughly $2 billion. The offer represents a 64 percent premium over Take 2's current share price of $17.36. The deal comes just before the highly anticipated release of GTA IV, and could mean EA could put its substantial advertising resources towards the GTA release.

The $19 billion dollar merger of Activision and Vivendi Games will create a game publisher with a higher market capilization and higher revenues then EA. It also creates speculation amongst smaller game publishers, such as Take-Two Interactive where mergers could substantially lower advertising costs and content businesses providing for higher growth.

Electronic Arts announced Today, that they have agreed to purchase BioWare Corp and Pandemic Studios for $825 million. Electronic Arts plans that the acquisition will add to their action adeventure and role playing titles, a market that accounts for 36% of the industry's U.S. sales.