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

#1
KevinCobley
It's the Murdoch controlled NewsCorpse that's attempting to turn gaming into gambling by stealth, what kind of idiot would spend real money on fantasy island loot crates, that actually have zero loot in them. Buy no loot crates ever.
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#2
Frick
Fishfaced Nincompoop
SkullFox said:
I fucking AGREE with this!!! ever since they did not release Star Wars KOTOR 3, I've been hoping they die a slow painfull death!!.
Off topic, but Obsidian should make Kotor 3.
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#3
Frick
Fishfaced Nincompoop
lexluthermiester said:

And this; http://www.gameinformer.com/themes/blogs/generic/post.aspx?WeblogApp=news&y=2017&m=11&d=21&WeblogPostName=belgiums-gaming-commission-has-declared-that-lootboxes-are-gambling&GroupKeys=
It isn't.

https://www.reddit.com/r/Games/comments/7eqpy6/no_belgium_did_not_rule_lootboxes_as_gambling/

https://www.rtbf.be/info/medias/detail_non-la-belgique-n-a-pas-qualifie-star-wars-battlefront-ii-de-jeu-de-hasard?id=9769751

Although..
Belgian here. The fact that our Gambling Commission apparently has not finished their investigation yet DOES NOT change the fact that our Justice Minister Koen Geens has said during a TV interview, on his website, and on Twitter, that he wants these lootboxes banned.

What Geens has said is basically his personal opinion. Our Gambling Commission can only give advice, our government is not required to follow that advice. So if Geens wants to ban it, even if the commission says it's not gambling, he can perfectly do that if he has the support from the rest of the government.
Meaning it might happen, but hasn't.
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#4
Prima.Vera
Frick said:
Off topic, but Obsidian should make Kotor 3.
Is already called SWTOR and is relatively good and enjoyable MMO to play.
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#5
Vayra86
Imagine if EA were to die for good, the amount of talented developers that will be unchained and now able to make something worth playing...

Can't wait. EA can screw off to the mobile gaming space, its what they seem to love anyway. Let's pray Battlefront 2 convinces them that PC releases are too hairy these days.
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#6
Liviu Cojocaru
Vayra86 said:
Imagine if EA were to die for good, the amount of talented developers that will be unchained and now able to make something worth playing...

Can't wait. EA can screw off to the mobile gaming space, its what they seem to love anyway. Let's pray Battlefront 2 convinces them that PC releases are too hairy these days.
Unfortunately EA will probably never die...also I think they are paying loads of money to their developers so if EA dies they won't be that happy :D
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#7
Laurijan
Liviu Cojocaru said:
Unfortunately EA will probably never die...also I think they are paying loads of money to their developers so if EA dies they won't be that happy :D
The developers just find another publisher that doesnt treath to shut them down all the time.
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#8
Liviu Cojocaru
Laurijan said:
The developers just find another publisher that doesnt treath to shut them down all the time.
do you think there will be enough roles available for all of them? I would love this to happen don't get me wrong but you probably won't find lots of places that pay this good...(btw I have no idea how much developers are making at EA but I would believe it's a lot otherwise they wouldn't put up with that sh*t)
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#9
swirl09
These articles have been popping up on many sites. Something Ive not seen mentioned is the fact that if you cast your eye back to the months prior, there have been a number of hefty dips. So while you can rejoice at them possibly getting hit with karma over Battlefront, its pretty much business as usual. 8.5% is unpleasant, but if you think its the death or anything remotely close to it, you may be disappointed.

If I was a shareholder and bought 1 year ago at 75, Id still be pretty ok with todays 105 post "shit-storm" value.

If you really want to hurt them, dont give them your money.
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#10
Vayra86
Liviu Cojocaru said:
do you think there will be enough roles available for all of them? I would love this to happen don't get me wrong but you probably won't find lots of places that pay this good...(btw I have no idea how much developers are making at EA but I would believe it's a lot otherwise they wouldn't put up with that sh*t)
Yes, there is an immense demand of IT workforce right now, its crazy. And I don't see that changing anytime soon either.

Will they all be doing what they like best, doubtful. But then again, us gamers just want the best of those devs, the rest can go do something else ;)
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#11
rtwjunkie
PC Gaming Enthusiast
Vayra86 said:
Let's pray Battlefront 2 convinces them that PC releases are too hairy these days.
I fear a major publisher vacating the PC market would not have the effect you hope for. Instead of creating a vaccum it is more likely to convince other publishers to quit on PC as well.

Although I love Indie games (he'll, 4 of them are in my top 10 for the year) I don't want a gaming world where that is all there is.
Posted on Reply
#12
Vayra86
rtwjunkie said:
I fear a major publisher vacating the PC market would not have the effect you hope for. Instead of creating a vaccum it is more likely to convince other publishers to quit on PC as well.

Although I love Indie games (he'll, 4 of them are in my top 10 for the year) I don't want a gaming world where that is all there is.
All those indies don't exist just to stay small all the time. Every promising indie dev has the potential to grow into one of the triple A giants we see today. Along their road to ascension, they will be forced to put out a significant amount of good products to get there. Once a company has gone past their explosive growth and 'settles for something', that's when it goes downhill. I mean look at CDPR: perfect example of a small dev/publisher that made its third iteration of a franchise into a triple A equivalent. Its possible, and its happening. At the same time, it has established numerous other things alongside it to support its growth and divide risk, such as GoG, which strives to be another Steam these days. CDPR is now in danger of becoming either another Valve that puts out nothing we care about and just runs a Store; or releasing a crappy title at an inflated price tag, such as a Witcher 4 that plays like a carbon copy of 3, but with season pass, horse DLC and lootboxes in it. Luckily they seem to have some other IP on the shelf as well.

The best product comes from companies that are truly motivated for growth, not the ones painstakingly trying to uphold their eco system and leech it dry with ever increasing overhead and underhand methods to fool customers into buying more of their product. It works that way in all entertainment, really.

If the usual suspects (Hollywood) create another blockbuster, nobody is surprised and its more of the same. When a relatively small budget and studio puts out a movie like, for example, 28 days later, its memorable, it has authenticity, it offers something fresh. Even today, if you asked me 'Best zombie film?'. Still that one. If I recall correct, they had like 300k to make it, and yet, every single scene of that film has greater impact than 2 hours of Hollywood blockbuster flinging six dozen clichés at you.

Music business: once the mainstream picks up on a trend, you can kiss the authenticity of a new style goodbye, as it gets mixed down to the same generic crap as everything else.

I'll refer to my personal signature: the only constant in time is change. And add to it: Change, and new movement is where the real gems are to be found.

Real change only happens through struggle; without struggle there are no casualties and without casualties or risk thereof, there is no drive to actually change. So no, not going to be sad AT ALL to see EA clear out of regular gaming. Again: let em go to mobile, suits their business model a lot better, they even say so themselves.

As for your fear of a desolate landscape where nobody wants to be: PC gaming is a growth market... you grossly overstate the influence of EA on that if you think others will follow. I honestly cannot think of a single marketplace where a company would ever consider 'leaving too' after a competitor leaves a gaping hole in the market behind. As long as there's demand, there's product. You refer of course to budgets, scope, size of games that could then be made... but again... TW3, Horizon Zero Dawn, 2017 was one of the better years in gaming of all time (quantity, diversity, quality) and yet somehow we fear gaming is going to shit. Stop this irrational fear, because even economically it makes zero sense.
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#13
rtwjunkie
PC Gaming Enthusiast
@Vayra86 Damned fine thought process there! I'd thank it twice if I could. :D
Posted on Reply
#14
Totally
rtwjunkie said:
I fear a major publisher vacating the PC market would not have the effect you hope for. Instead of creating a vaccum it is more likely to convince other publishers to quit on PC as well.

Although I love Indie games (he'll, 4 of them are in my top 10 for the year) I don't want a gaming world where that is all there is.
If that happened yes it would suck for a while but it would get better, I say that because once upon a time EA was an indie dev. Now they just drop deuces that stink to high heaven and expect people to open up their wallets without consequence to pay for them.
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