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	<title>Comments on: EA Pays $860M for Hardcore Gamer Studio &#8212; But Why?</title>
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	<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/</link>
	<description>Trusted Insights and Conversations on the Next Wave of Technology</description>
	<lastBuildDate>Thu, 26 Nov 2009 06:47:41 +0000</lastBuildDate>
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		<title>By: Will More Jobs Cuts be Enough to Fix Electronic Arts?</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-918820</link>
		<dc:creator>Will More Jobs Cuts be Enough to Fix Electronic Arts?</dc:creator>
		<pubDate>Sun, 21 Dec 2008 17:43:57 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-918820</guid>
		<description>&lt;p&gt;[...] Malik  &#124; Sunday, December 21, 2008 &#124; 8:51 AM PT &#124; 0 comments    Last year Electronic Arts CEO John Riccitiello told The Wall Street Journal that his company was &#8220;boring people to death and making games that are harder and harder to [...]&lt;/p&gt;
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		<content:encoded><![CDATA[<p>[...] Malik  | Sunday, December 21, 2008 | 8:51 AM PT | 0 comments    Last year Electronic Arts CEO John Riccitiello told The Wall Street Journal that his company was &#8220;boring people to death and making games that are harder and harder to [...]</p>]]></content:encoded>
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		<title>By: Games &#38; Video Games &#171; It&#8217;s about &#8230;.</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-629914</link>
		<dc:creator>Games &#38; Video Games &#171; It&#8217;s about &#8230;.</dc:creator>
		<pubDate>Fri, 26 Oct 2007 17:23:33 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-629914</guid>
		<description>&lt;p&gt;[...] site GigaOM is picking up its games coverage again, and kicks off with an article speculating on just what EA was thinking when it purchased BioWare and Pandemic. On the face of it, the move doesn&#8217;t make much sense. [...]&lt;/p&gt;
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		<content:encoded><![CDATA[<p>[...] site GigaOM is picking up its games coverage again, and kicks off with an article speculating on just what EA was thinking when it purchased BioWare and Pandemic. On the face of it, the move doesn&#8217;t make much sense. [...]</p>]]></content:encoded>
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		<title>By: Antion</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-628923</link>
		<dc:creator>Antion</dc:creator>
		<pubDate>Fri, 26 Oct 2007 02:30:22 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-628923</guid>
		<description>&lt;p&gt;Two things:&lt;/p&gt;

&lt;ul&gt;
&lt;li&gt;&lt;p&gt;The Sims is a freak hit. It&#039;s not close to any other game in the industry. It&#039;s to single player games what World of Warcraft is for MMOs.&lt;/p&gt;&lt;/li&gt;
&lt;li&gt;&lt;p&gt;RPG and Action Games make up ~35% of the american software market and EA has nothing in these areas. This means that the money is going to the competition.&lt;/p&gt;&lt;/li&gt;
&lt;/ul&gt;

&lt;p&gt;Case to the point, EA recently announced that the revenue from the sports division that rebrands the same titles every year (Madden, NHL, ...) is down roughly 30%. 
The company has come to rely too much on sequels and sports remakes and that makes them vulnerable. Thus they are diverifying their portfolio, and, on the way, prevent someone else from snapping up BioWare / Pandemic.&lt;/p&gt;
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		<content:encoded><![CDATA[<p>Two things:</p>

<ul>
<li><p>The Sims is a freak hit. It&#8217;s not close to any other game in the industry. It&#8217;s to single player games what World of Warcraft is for MMOs.</p></li>
<li><p>RPG and Action Games make up ~35% of the american software market and EA has nothing in these areas. This means that the money is going to the competition.</p></li>
</ul>

<p>Case to the point, EA recently announced that the revenue from the sports division that rebrands the same titles every year (Madden, NHL, &#8230;) is down roughly 30%. 
The company has come to rely too much on sequels and sports remakes and that makes them vulnerable. Thus they are diverifying their portfolio, and, on the way, prevent someone else from snapping up BioWare / Pandemic.</p>]]></content:encoded>
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		<title>By: Why EA Added Dr. Kathleen to Pogo &#8212; and Why You Should Care &#171; GigaOM</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-616569</link>
		<dc:creator>Why EA Added Dr. Kathleen to Pogo &#8212; and Why You Should Care &#171; GigaOM</dc:creator>
		<pubDate>Thu, 18 Oct 2007 07:26:18 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-616569</guid>
		<description>&lt;p&gt;[...] 18, 2007 at 12:25 AM PT &#124; No comments   While Electronic Arts provoked a lot of conversation over the excessive purchase price of hardcore gaming studio Pandemic/BioWare last week, I think a quieter move by EA deserves about as much attention: They recently added a [...]&lt;/p&gt;
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		<content:encoded><![CDATA[<p>[...] 18, 2007 at 12:25 AM PT | No comments   While Electronic Arts provoked a lot of conversation over the excessive purchase price of hardcore gaming studio Pandemic/BioWare last week, I think a quieter move by EA deserves about as much attention: They recently added a [...]</p>]]></content:encoded>
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		<title>By: Raymond Padilla</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-615300</link>
		<dc:creator>Raymond Padilla</dc:creator>
		<pubDate>Wed, 17 Oct 2007 09:20:44 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-615300</guid>
		<description>&lt;p&gt;-- This truly was one of the worst post titles on this site.&lt;/p&gt;

&lt;p&gt;-- You belittle BioWare&#039;s accomplishment of selling over a million titles for a single-platform game, which KotOR was initially. Actually, you belittle the accomplishment of selling a million units entirely.&lt;/p&gt;

&lt;p&gt;-- The acquisition fills some holes in EA&#039;s portfolio.&lt;/p&gt;
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		<content:encoded><![CDATA[<p>&#8211; This truly was one of the worst post titles on this site.</p>

<p>&#8211; You belittle BioWare&#8217;s accomplishment of selling over a million titles for a single-platform game, which KotOR was initially. Actually, you belittle the accomplishment of selling a million units entirely.</p>

<p>&#8211; The acquisition fills some holes in EA&#8217;s portfolio.</p>]]></content:encoded>
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		<title>By: Robin</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-614906</link>
		<dc:creator>Robin</dc:creator>
		<pubDate>Wed, 17 Oct 2007 02:09:52 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-614906</guid>
		<description>&lt;p&gt;&quot;Of course they made money, but like I said, not that much money in relation to revenue Maxis has earned for EA.&quot;&lt;/p&gt;

&lt;p&gt;That might be relevant if Maxis&#039;s products were competing for the same part of the market.&lt;/p&gt;

&lt;p&gt;Perhaps Hollywood should axe all development of non-iceberg-and-Celine-Dion-based movies too.&lt;/p&gt;

&lt;p&gt;I&#039;ve not seen the part of EA&#039;s mission statement that says they should strive to leave areas of the market for Take Two, Microsoft, Blizzard, etc. to earn $100m&#039;s from uncontested.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>&#8220;Of course they made money, but like I said, not that much money in relation to revenue Maxis has earned for EA.&#8221;</p>

<p>That might be relevant if Maxis&#8217;s products were competing for the same part of the market.</p>

<p>Perhaps Hollywood should axe all development of non-iceberg-and-Celine-Dion-based movies too.</p>

<p>I&#8217;ve not seen the part of EA&#8217;s mission statement that says they should strive to leave areas of the market for Take Two, Microsoft, Blizzard, etc. to earn $100m&#8217;s from uncontested.</p>]]></content:encoded>
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		<title>By: Yeebo</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-614614</link>
		<dc:creator>Yeebo</dc:creator>
		<pubDate>Tue, 16 Oct 2007 21:53:28 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-614614</guid>
		<description>&lt;p&gt;There is a SW television program in development (or so it is rumored).  The SW MMO may be set in the same time period, or simply be launching near the date of the show.&lt;/p&gt;

&lt;p&gt;Rumor + rumor + speculation = ?&lt;/p&gt;
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		<content:encoded><![CDATA[<p>There is a SW television program in development (or so it is rumored).  The SW MMO may be set in the same time period, or simply be launching near the date of the show.</p>

<p>Rumor + rumor + speculation = ?</p>]]></content:encoded>
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		<title>By: Wagner James Au</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-614508</link>
		<dc:creator>Wagner James Au</dc:creator>
		<pubDate>Tue, 16 Oct 2007 19:56:50 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-614508</guid>
		<description>&lt;p&gt;&quot;Which of the supposedly &#039;niche&#039; games you list didn’t make money?&quot;&lt;/p&gt;

&lt;p&gt;Of course they made money, but like I said, not that much money in relation to revenue Maxis has earned for EA.  Which makes EA&#039;s high purchase price strange; and still stranger when Pandemic/Bioware&#039;s product is totally at odds with the CEO&#039;s own stated corporate mission.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>&#8220;Which of the supposedly &#8216;niche&#8217; games you list didn’t make money?&#8221;</p>

<p>Of course they made money, but like I said, not that much money in relation to revenue Maxis has earned for EA.  Which makes EA&#8217;s high purchase price strange; and still stranger when Pandemic/Bioware&#8217;s product is totally at odds with the CEO&#8217;s own stated corporate mission.</p>]]></content:encoded>
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		<title>By: brent</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-614365</link>
		<dc:creator>brent</dc:creator>
		<pubDate>Tue, 16 Oct 2007 17:45:31 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-614365</guid>
		<description>&lt;p&gt;The title of this article is infuriating. Way to look like a pedestrian game writer.  Sorry, but &#039;tis true.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>The title of this article is infuriating. Way to look like a pedestrian game writer.  Sorry, but &#8217;tis true.</p>]]></content:encoded>
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		<title>By: Nathan Snell</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-613422</link>
		<dc:creator>Nathan Snell</dc:creator>
		<pubDate>Mon, 15 Oct 2007 22:52:46 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-613422</guid>
		<description>&lt;p&gt;If they wanted hardcore gamers who liked games that are hard to play, they should have purchased the Starseige Tribes intellectual property.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>If they wanted hardcore gamers who liked games that are hard to play, they should have purchased the Starseige Tribes intellectual property.</p>]]></content:encoded>
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		<title>By: EA picks up Bioware for close to a billion</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-613386</link>
		<dc:creator>EA picks up Bioware for close to a billion</dc:creator>
		<pubDate>Mon, 15 Oct 2007 21:38:00 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-613386</guid>
		<description>&lt;p&gt;[...] Nights, Star Wars: Knights of the Old Republic, and the hotly anticipated Mass Effect.  But the buzz at GigaOm, tech journalist Om Malik&#8217;s site, indicates EA may have snapped up Bioware less for its [...]&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>[...] Nights, Star Wars: Knights of the Old Republic, and the hotly anticipated Mass Effect.  But the buzz at GigaOm, tech journalist Om Malik&#8217;s site, indicates EA may have snapped up Bioware less for its [...]</p>]]></content:encoded>
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		<title>By: Robin</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-612966</link>
		<dc:creator>Robin</dc:creator>
		<pubDate>Mon, 15 Oct 2007 13:07:50 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-612966</guid>
		<description>&lt;p&gt;Which of the supposedly &quot;niche&quot; games you list didn&#039;t make money? KOTOR did over a million units.&lt;/p&gt;

&lt;p&gt;Did you stop to think that there might be (millions) of gamers who want to buy more involving games, irrespective of how fervently you try to wish them away as irrelevant to your preposterous Second Life new world order?&lt;/p&gt;

&lt;p&gt;Your Coen Brothers analogy is equally specious. If the Coen Brothers had the capacity to consistently churn out five or ten of their offbeat modest successes every year it would be approaching accuracy.&lt;/p&gt;

&lt;p&gt;You really can be very silly James.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>Which of the supposedly &#8220;niche&#8221; games you list didn&#8217;t make money? KOTOR did over a million units.</p>

<p>Did you stop to think that there might be (millions) of gamers who want to buy more involving games, irrespective of how fervently you try to wish them away as irrelevant to your preposterous Second Life new world order?</p>

<p>Your Coen Brothers analogy is equally specious. If the Coen Brothers had the capacity to consistently churn out five or ten of their offbeat modest successes every year it would be approaching accuracy.</p>

<p>You really can be very silly James.</p>]]></content:encoded>
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		<title>By: AK</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-611743</link>
		<dc:creator>AK</dc:creator>
		<pubDate>Sun, 14 Oct 2007 15:21:05 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-611743</guid>
		<description>&lt;p&gt;I think its an outrage that EA are monopolising the games industry just to start and being allowed to get away with it. Microsoft recent made a fair play by spliting with Bungie, so why haven&#039;t Maxis split with EA after the huge success with &quot;The Sims&quot; series?&lt;/p&gt;

&lt;p&gt;Mercenaries, Star Wars Battlefront and Star Wars: KOTOR are some of my personal favorites. With Mercs 2 on the way I believed Pandemic especially would avoid take-over bids, perticularly now.&lt;/p&gt;

&lt;p&gt;As for some of the articles comments I must disagree with most of them. KOTOR was a hit in its own right and justifying what a &quot;big&quot; hit is out of the question. For a game to be voted &quot;Game of the Year&quot; is a big title, no matter what the sales of the game are, and to sell over a million copies of the game does say something.&lt;/p&gt;

&lt;p&gt;Finally I have to agree with everything &quot;OTL&quot; said in their comment. My sister plays Star Wars: Battlefront with us regularly and she&#039;s more into games like &quot;The Sims&quot; and the Harry Potter games.&lt;/p&gt;
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		<content:encoded><![CDATA[<p>I think its an outrage that EA are monopolising the games industry just to start and being allowed to get away with it. Microsoft recent made a fair play by spliting with Bungie, so why haven&#8217;t Maxis split with EA after the huge success with &#8220;The Sims&#8221; series?</p>

<p>Mercenaries, Star Wars Battlefront and Star Wars: KOTOR are some of my personal favorites. With Mercs 2 on the way I believed Pandemic especially would avoid take-over bids, perticularly now.</p>

<p>As for some of the articles comments I must disagree with most of them. KOTOR was a hit in its own right and justifying what a &#8220;big&#8221; hit is out of the question. For a game to be voted &#8220;Game of the Year&#8221; is a big title, no matter what the sales of the game are, and to sell over a million copies of the game does say something.</p>

<p>Finally I have to agree with everything &#8220;OTL&#8221; said in their comment. My sister plays Star Wars: Battlefront with us regularly and she&#8217;s more into games like &#8220;The Sims&#8221; and the Harry Potter games.</p>]]></content:encoded>
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		<title>By: krsnaKhandelwal</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-611237</link>
		<dc:creator>krsnaKhandelwal</dc:creator>
		<pubDate>Sun, 14 Oct 2007 05:47:30 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-611237</guid>
		<description>&lt;p&gt;and questions like when are you going to go mad under assault from the IT enabled services.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>and questions like when are you going to go mad under assault from the IT enabled services.</p>]]></content:encoded>
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		<title>By: Wagner James Au</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-610940</link>
		<dc:creator>Wagner James Au</dc:creator>
		<pubDate>Sat, 13 Oct 2007 22:26:51 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-610940</guid>
		<description>&lt;p&gt;I&#039;m not disputing the quality, if you read closely, BioWare/Pandemic make excellent hardcore games; but as I said, the reality is they don&#039;t have a track record to justify that purchase price.  If you want to go the Hollywood analogy, BioWare are a bit like the Coen Brothers, who&#039;ve made a bunch of great films, but whose biggest success, &lt;em&gt;O Brother Where Art Thou&lt;/em&gt;, made something like $50 million domestic, a modest hit at best.  EA&#039;s purchase is like a studio signing the Coen brothers to an exclusive development deal... for a billion dollars.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>I&#8217;m not disputing the quality, if you read closely, BioWare/Pandemic make excellent hardcore games; but as I said, the reality is they don&#8217;t have a track record to justify that purchase price.  If you want to go the Hollywood analogy, BioWare are a bit like the Coen Brothers, who&#8217;ve made a bunch of great films, but whose biggest success, <em>O Brother Where Art Thou</em>, made something like $50 million domestic, a modest hit at best.  EA&#8217;s purchase is like a studio signing the Coen brothers to an exclusive development deal&#8230; for a billion dollars.</p>]]></content:encoded>
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		<title>By: Sean</title>
		<link>http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-610765</link>
		<dc:creator>Sean</dc:creator>
		<pubDate>Sat, 13 Oct 2007 18:30:03 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/2007/10/12/ea-pays-860m-for-hardcore-gamer-studio-but-why/#comment-610765</guid>
		<description>&lt;p&gt;I have to agree a bit with the others.  While I won&#039;t try and justify the purchase or the price, in terms of producing quality games these studios are at the top of their game.&lt;/p&gt;

&lt;p&gt;With the world of film as an analog, studios like Bioware create Academy Award winners, while huge mainstream successes like &#039;The Sims&#039; are more along the lines of American Idol.  Measuring only in dollars and cents can skew your perception of what a &#039;quality&#039; title is, even if it might be a little too difficult for 45 year old non-gamers to pick up.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>I have to agree a bit with the others.  While I won&#8217;t try and justify the purchase or the price, in terms of producing quality games these studios are at the top of their game.</p>

<p>With the world of film as an analog, studios like Bioware create Academy Award winners, while huge mainstream successes like &#8216;The Sims&#8217; are more along the lines of American Idol.  Measuring only in dollars and cents can skew your perception of what a &#8216;quality&#8217; title is, even if it might be a little too difficult for 45 year old non-gamers to pick up.</p>]]></content:encoded>
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