Electronic Arts announced today that it had acquired Florida-based software developer Tiburon Entertainment.

　　The two companies already had a working relationship - Tiburon developed the PlayStation and Nintendo 64 versions of John Madden Football 98 and the PlayStation version of NCAA College Football 98 for EA. EA has had a minority stake in Tiburon since April 1996, when it picked up 19.9 percent of the 52-person company. Under the terms of the agreement announced today, though, Tiburon becomes a wholly owned subsidiary of EA. Financial terms of the deal were not disclosed.

　　EA calls its acquisition of Tiburon, "consistent with EA's strategy to enhance its development and creative resources through acquisition or investment." This past year, EA bought Maxis and has made investments in developers Accolade Inc. and Stormfront Studios Inc.

　　EA is also touting the release of a report by Access Media International Inc., a market research firm. The report, titled Home Interactive Entertainment Assessment & Outlook 1996 - 2002, says that US sales of home entertainment software grew in 1997 by 34 percent to US$5.8 billion. Globally, that figure grew 52 percent, to $14 billion, according to the report.

　　EA, with 1997 revenues of $860 million, came out as the "top provider of home interactive entertainment software for 1997."

　　EA stated that the report emphasized "that the market continues to consolidate around major companies that produce and distribute their own titles ... the report stresses that the key requirement for vendors is to have robust distribution capabilities to ensure that their titles enjoy substantial retail shelf space." EA quotes the study as saying, "retailers are looking for a steady stream of quality games or evergreen products."

　　EA's acquisition of Tiburon means it's following right in step with trends noted by the Access Media report.