Thursday, November 30th 2017

EA Bleeds $3.1 Billion in Stock Value Over Battlefront II Fiasco

Electronic Arts (EA) bled USD $3.1 billion (£2.3 billion) in stock value at the markets over the week, as the company scaled down its controversial loot-crate system deployed in "Star Wars: Battlefront II." The company is fighting a PR debacle as gamers complain of terrible pricing of the base-game, DLC, and an aggressive loot-crate system that's drawing the attention of government regulators around the world, who are threatening to impose gambling regulations against the game.

The concept of loot-crate is simple. You pay a seemingly small amount of money for a "mystery box" containing either something great (like weapon-attachments), or something of no tangible impact on gameplay (like skins). You're incentivized to buy more loot-crates in hope that you'll get something better. This becomes a gamble. In 2016, EA earned over $800 million in profits selling loot-crates among other micro-transactions, across various game franchises, such as Battlefield and Need for Speed. With EA scaling down several of its ancillary revenue models for the game, the studio's stock bled 8.5 percent month-to-date. Drew Crum, an analyst with investment firm Stifel also attributes underwhelming Black Friday sales of the game to EA's bear-hug.

Source: GameRevolution
Add your own comment

64 Comments on EA Bleeds $3.1 Billion in Stock Value Over Battlefront II Fiasco

#1
rob49152
Oh let me check my loot crate to see if I feel bad for EA....

NOPE!!
Posted on Reply
#2
Totally
rob49152 said:
Oh let me check my loot crate to see if I feel bad for EA....

NOPE!!
You should crack open another one the feels might be in there.
Posted on Reply
#3
JackOne
They got too greedy and now the whole thing imploded. Congrats and well done. Learn from it, go back to being a decent company or go down for good.
Posted on Reply
#4
Solaris17
Creator Solaris Utility DVD
JackOne said:
They got too greedy and now the whole thing imploded. Congrats and well done. Learn from it, go back to being a decent company or go down for good.
This.

If anything this is the perfect example of capitalism. The people spoke with there wallets (investors) and EA is gonna carry that weight.
Posted on Reply
#5
techy1
good, not that I care about Battlefront... but I am damn sure every game developer is watching this and thinking: "hmm... EA got a bit too greedy and got backlash, I wonder how this will play out... if this will quiet down - maybe we also can get away with a more "loot" in future?"... I hope this brings answer to all of them (for this moment)
Posted on Reply
#6
the54thvoid
I may be wrong but the share price falling means investors DONT like that loot crates are gone for now. Investors and stock prices have nothing to do with the 'ethical' value. Price dropped because shareholders sold stocks because loot crates were good for them.
Generally, a drop in share price means investors think the company made a bad move.
Posted on Reply
#7
chaosmassive
its not enough, they need to suffer even more
Posted on Reply
#8
Readlight
I can not run my purchased crysis 2 maximum games whiteout that shit Origin same is in Steam!
Posted on Reply
#9
Dj-ElectriC
JackOne said:
go back to being a decent company or go down for good.
>man EA -k decent
>'decent' not found
Posted on Reply
#10
LogitechFan
So how this is gambling and crates in TF2 (for which you need a paid key to open) is not?! I hope if EA suffers, Valve's ass gets hammered too, for years and years and years of illegal gambling.
Posted on Reply
#11
erixx
Their only game I buy is BF (and I would prefer another publisher). And the "crates game" inside BF1 is a horrible pile a horsebung, I feel so stupid clicking on them getting "weapon skins" and imbecile "puzzles parts" (wtf?), seriously they want me to spend money on crates? hahahahahaha NO WAY
Posted on Reply
#12
RejZoR
I wish Need for Speed fans would blow EA for stupid Speed Cards which are essentially the same junk as Star Cards in Star Wars Battlefront 2. Instead, idiots are actually defending EA for it. It's crazy what kind of spineless and without any quality standards playerbase NFS now has.
Posted on Reply
#13
EntropyZ
They are reaping what they have sown. I agree on them either doing something about it or just disappear and sell their IPs to someone who can make better use of them. But they would rather take them to their grave than see someone else making money off of them.
Posted on Reply
#15
Prima.Vera
EA is a constant TOP 3 runner, year by year, for THE WORST COMPANY award, hopefully will get 1st or at least 2nd place too this year.
Posted on Reply
#16
Liviu Cojocaru
I am so happy about this, I hope this gives them some food for thought
Posted on Reply
#17
ShurikN
Bleed and die, EA.... bleed and die.
Posted on Reply
#18
RejZoR
Liviu Cojocaru said:
I am so happy about this, I hope this gives them some food for thought
It just might. Just having a title of worst company of the year didn't change them. Maybe bleeding out 3 billions for being an ass to customers will.
Posted on Reply
#19
Liviu Cojocaru
RejZoR said:
It just might. Just having a title of worst company of the year didn't change them. Maybe bleeding out 3 billions for being an ass to customers will.
Remains to be seen...I think loot boxes should disappear from all games just ban them all :D
Posted on Reply
#20
Aquinus
Resident Wat-man
No sympathy. I hope EA fails in an epic flame of karma. I already had grown to hate EA before this even happened. If they can get away with this kind of response, what the hell does it take for the company to fail?!
Posted on Reply
#21
_JP_
the54thvoid said:
I may be wrong but the share price falling means investors DONT like that loot crates are gone for now. Investors and stock prices have nothing to do with the 'ethical' value. Price dropped because shareholders sold stocks because loot crates were good for them.
Generally, a drop in share price means investors think the company made a bad move.
Makes sense. That or all the flak means loss in sales and potential failure of the microtransactions system EA implemented for recent and forthcoming AAA releases.
Posted on Reply
#22
progste
GOOD. It's time they payed for all the good companies they ruined.
Posted on Reply
#23
Prima.Vera
100$ for Deluxe version?? Are you kiddin' me!?!? EA trash!
Posted on Reply
#24
Frick
Fishfaced Nincompoop
Let Bioware die with them.
Posted on Reply
#25
TheinsanegamerN
the54thvoid said:
I may be wrong but the share price falling means investors DONT like that loot crates are gone for now. Investors and stock prices have nothing to do with the 'ethical' value. Price dropped because shareholders sold stocks because loot crates were good for them.
Generally, a drop in share price means investors think the company made a bad move.
But that bad move may very well not be the removal of loot-boxes, as EA made some silly claim that it would not affect their bottom line,and is much more likely due to battlefront II's highly disappointing sales numbers (which WILL affect EAs bottom line, badly), heavy consumer backlash, and demands that disney pull the star wars license from them.
Posted on Reply
Add your own comment