Thursday, November 30th 2017

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

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btarunr
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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
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