VIEWPOINT: EA might buy its way into the social networking MMO sphere

Major video games publisher Electronic Arts (EA) is in advanced talks to buy gaming social network Rupture for USD30m, reports Techcrunch. Although still in beta, Rupture is known to offer a social network around ?World of Warcraft’. More recently, however, the startup expanded its offering by adding new online PC and Xbox games communities.

In StrategyEye’s view, one which we have previously stressed, it is clear that creating bespoke online social networks for niche communities is an opportunity that should be capitalised upon. However, to what extent would such an acquisition benefit EA?

Firstly, EA could leverage Rupture’s technology backbone. Rupture’s user base is really limited since the social network never actually launched. Its technology, on the other hand, is definitely a valuable asset for EA. The Rupture technology acts as a profile manager, automatically updating gamers’ profiles according to their game achievements. Furthermore, its recent addition of Xbox Live game communities demonstrates its technology’s ability to go beyond PC gaming and tap into the multiplayer console games market.

Secondly, Rupture’s social network could provide a product shelf-life extension to EA Mythic MMO titles, especially its forthcoming ?Warhammer Online: Age of Reckoning’ and its ?Dark Age of Camelot’ franchise. Using Rupture to implement social networks around these IPs could prove a good move for EA for the following reasons:

* Rupture’s social features are specifically well-adapted to MMO communities and can be extended at low cost on different IPs.

* Developing social interactions between players is likely to increase user loyalty, especially for its subscription-based MMO titles.

* Since EA is not only the publisher but also the developer of these games, this gives the company enough credibility to implement bespoke social networks that can reach a critical scale.

Alternatively, EA could also use Rupture on a much broader scale, by enlarging its social networking platform to all multiplayer versions of its titles. Interestingly, Rupture has already implemented a community for EA’s ?Madden NFL 08’ and Activision’s ?Guitar Hero III’, which suggests that Rupture’s technology could also be used for sports.

In StrategyEye’s view, it is highly likely that the Rapture acquisition would benefit EA. At a time when the MMO space is still dominated by Activision-Blizzard, entering the social networking MMO sphere would give EA a new competitive edge.

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EA to buy Rupture from Napster founder in USD30m deal - Rumour

Major video games publisher Electronic Arts (EA) is in advanced talks to buy social games network Rupture for USD30m, reports Techcrunch. Rupture, which is the third startup venture by Napster founder Shawn Fanning, is expected to finalise terms with EA "imminently", says the report.

Rupture was created in 2006 and released in beta mode but was never launched publicly. The platform was designed for gamers to build video game-based personal profiles, which automatically update with level and score information. Through the social network users can communicate with friends and track their progress. Initially the site was mainly based around Blizzard's 'World of Warcraft' title, although an acquisition could see EA incorporate Rupture's technology to form its social platform.

Fanning's last venture, music service Snocap, was acquired by Imeem in Feb. Although the price was not disclosed, poor performances prior to the sale led analysts to claim it was bought for a relatively insignificant sum.

EA is currently involved in a takeover bid for 'Grand Theft Auto' games publisher Take-Two Interactive. EA has extended its bid for Take-Two to May 16, after an initial USD2bn offer was rejected.

A spokesperson for EA was not immediately able to comment on the Rupture takeover.