Virtual Goods News

Is Electronic Arts buying social games maker Playfish? Has it already completed the purchase? According to EA exec John Schappert who spoke at the VentureWire Technology Showcase in Redwood City, Calif., today, the answer is ... maybe, maybe not. Neither denying nor confirming any new company stake in the fast-growing game sector, Schappert told game site Gamasutra, "I'm not going to speculate on rumors about our M&A strategy." Playfish was similarly mum. "We don't comment on rumors. Full stop."

Speculation of an EA acquisition in the social games space has been circulating for months. EA made a famous bet in 2005 when it bought mobile game maker JAMDAT for nearly $700 million, so it's no stranger to buying into a up-trending sector, but much has changed for the traditional game publisher since then. Today EA shares, at just over $20 each, are substantially lower then the $60 price shares traded at for much of 2005. Depressed share prices mean less buying power. Still, EA is struggling to find a meaningfull strategy it can execute on to compensate for its negligible presence in social games -- and a giant acquisition of a major social game company might turn into a long-term win.

This story originally appeared on Virtual Worlds News.