With EA going private in a massive $55B deal, longtime analyst Michael Pachter took aim at Sony, saying the company is “blowing it” in the games business and claiming the future of gaming lies in connected TV.
Yesterday, Electronic Arts officially agreed to be acquired in a $55 billion all‑cash deal, led by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Jared Kushner’s Affinity Partners. EA shareholders will receive $210 per share, a roughly 25 % premium, under terms announced by EA’s board.
Yesterday, after the news hit, Yahoo Finance brought on two industry analysts: Andrew Merrick of Raymond James and Michael Pachter of Wedbush Securities, to unpack not only the EA deal, but also how it reflects broader shifts in the world of interactive entertainment.
Michael Pachter didn’t hold back, especially when discussing Sony and PlayStation.
Sony is “blowing it in the games business,” says Analyst
During the segment, Pachter laid out his take on why he thinks the EA deal makes sense in today’s market. He argued that consolidation is inevitable because many public publishers have lost investor confidence. He also pointed out how the industry is moving toward connected TV, cloud streaming, and AI-powered distribution, which he sees as the next big thing.
At one point, Patcher was asked a bigger-picture question: “Is there also a case to be made that you buy the bigger conglomerates? Do you buy a Microsoft for Activision? Do you buy a Sony?”
That’s when Pachter took the opportunity to speak bluntly, especially about Sony. He says Sony isn’t the pick and that the PlayStation maker is “blowing it” in games as, in his opinion, the industry moves to connected TV like Netflix of games.
Here’s the full quote from the interview:
“Sony? Sony for sure not. Sony’s a terrible company and they actually are blowing it in the games business,” Patcher said. “Look, games are moving to connected TV. So think about all the participants that are going to deliver games the way we get movies via Netflix, and forget the subscription model. Just think about iOS becoming [available] on your TV.
“So free-to-play games on your TV. Who’s going to deliver that? Cloud providers, AI, anybody who’s investing in making that happen is where you want to be.”
Pachter believes we’re heading into a future where you won’t need a console at all. Games will be streamed straight to your television, just like movies are today. And instead of paying for a big subscription, you’ll access free-to-play games directly, powered by cloud and AI systems.
For context, the PS5 has sold over 80 million units since its launch in 2020, according to Sony’s latest financial reports. In Q1 of Sony’s 2025 fiscal year, it sold 2.5 million units, while game and network services revenue reached ¥936.5 billion (about $6.46 billion), growing roughly 8% year over year.
What do you think about Pachter’s take on Sony and PlayStation? Let us know your thoughts in the comments below!
