Wall Street is pointing to the possibility of Microsoft forging new ties with Electronic Arts, after the publisher revealed yesterday it will not release new versions of its sport video games this year.

MCV, a leading publication in the UK for the Interactive Entertainment Industry, believes that discussions between Microsoft and EA over Xbox Live are still ongoing. However, US analysts saw the temporary shut down of the sports line as a sign that EA may now step into the void.

“This is clearly a positive for Electronic Arts… and may be the first sign of a closer relationship between the two companies,” said a note from Credit Suisse Boston (reported by Reuters this morning). “We believe Microsoft’s decision makes it more likely that EA will support Xbox Live once its exclusive agreement with Sony expires in June.”

Three titles that had been planned to be released annually – NFL Fever, NBA Inside Drive and NHL Rivals – were affected, along with Links, Top Spin and Amped, that were not necessarily on an annual release schedule.

Rallisport Challenge 2 is still on track for a May release in the US and later in the year in the UK.

However, Microsoft is to keep its XSN Sports brand, which was only launched last May, as a way to unify and promote its sports properties, while also maintaining its online leagues and downloads for existing XSN titles.

“We’re focused on closing the quality gap between our sports line up and that of our competitors,” said Kevin Browne, who manages sports games for Microsoft Game Studios. “Therefore we will not be shipping new versions of our sports games this fall.”

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