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SWTOR and the EA stock plummet


Taurusaud

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http://www.gamesindustry.biz/articles/2012-06-21-stock-ticker-why-eas-market-valuation-has-crashed?utm_source=newsletter&utm_medium=email&utm_campaign=us-daily

 

"Something has gone terribly wrong for EA, at least in the eyes of stock market investors. There are several plausible explanations for this - each of which is likely to be true to a certain degree, since it's unlikely that any one factor alone is responsible for driving the price down so far.

 

Firstly, there's Star Wars: The Old Republic. EA's stock price went into decline after The Old Republic's launch, and hasn't recovered yet - and that timing is unlikely to be a coincidence. Expectations among investors for SWTOR were extremely high, given the game's much-publicised high development costs (which probably make it the most expensive game project ever), the strength of the Star Wars license, the track record of developer Bioware and, crucially, the tantalising possibility of building an ongoing MMO revenue stream for EA which would match the one enjoyed by rival Activision Blizzard from World of Warcraft. While it would be unfair to characterise SWTOR as a complete failure, it has certainly not been a success on the level which EA or its investors would have wanted. The game has lost 400,000 subscribers since February, and it seems inevitable that the company will be forced into an embarrassing (but probably commercially sensible) transition to a free-to-play model sooner rather than later."

 

EA losing 50% of it's stock value since the SWTOR launch? Ouch. What implications does this have for everybody's favorite MMO in space (besides Eve)?

Edited by Taurusaud
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I think they're reacting too wild. The game is definitely recovering now. Give a couple of months and popularity will probably return.

 

They pushed the deadline for the release, that was the big problem making every spoiled gamer cry about the small tings they were used to in WoW. Three months from now they game will flourish!

 

My 2 cents.

Edited by TapSumBatt
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Considering they have publicly announced that they plan to structure all their games to revolve around micro transactions while at the same time stated that their consumers are not going to like it, I would expect this...

 

You can't walk up to stock holders and say your spitting in the eye of your consumers, and not expect them to bail on you.

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I don't see why it would start losing value until the -400k loss was reported. That wasn't reported in December before the game launched.... So from that we can tell that EA stock was already falling long before that quarterly report came out.

 

Im sure that helped things a lot, but the launch numbers were good, they had the largest launch numbers yet. But the stock didnt take off on that news but instead continued to drop. This is bigger than SWTOR. 50% is a huge loss for a company that normally floats with the market.

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I dont know if it will ever recover.

 

The main problem I heard from all my friends and guildmates leaving the game was, "it is too much like wow" or "game got boring once you hit 50"

 

And those people would have left any new game once they reached endgame and got bored. They're the same people who sat here in the forums or in general chat talking about how great D3 and G2 were going to be, then got bored with D3 after one runthrough, made it through a couple of beta weekends of G2 and started whining, and are now talking about.....Elder Scrolls Online. Since it's always best to overinflate your expectations for a game you can't yet play, then you can talk out your butt all you want about all the cool features it will have that NO OTHER GAME WILL EVER MATCH. Just like they did with SWTOR, then were disappointed that it wasn't the best MMO ever in the history of the world. They are never happy with any game for long, because no game can ever match the expectations they have in their head for said game.

 

I have some friends who follow this pattern, and I just play with them when they're enjoying the high of a new game, and say sayonara when they get bored. They're almost always back for new content patches, despite how "boring" said game is. Because they go through games like disposable tissues, and therefore are always looking for something else to blow their figurative noses on, or wipe their figurative....well, you get the picture.

 

Everyting they're saying with regards to BW was said at one time or another re Sony and EQ1 and EQ2, well before P2P ever came on the scene. Considering how long Warcraft has been kept on life support without P2P, and the dislike LA has for the concept, I think a full P2P scenario is a lot further in the future than the doomsayers would prefer. They so like to make those in six months, six weeks, heck, six days predictions.

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Probably not much of an implication. EA makes a lot of games and the dip is in no way tied to just the performance of star wars. For all we know star wars subs maybe helped prevent the shares dropping lower. You also need to factor in all the other games they produce, sometimes it feels like virtually every second or third game i see advertised is in some way linked to EA.

 

With the exception of Blizzard/Activision, which they described as an outlier, the other games companies mentioned were in decline in the case of THQ or doing poorly like Zynga. I think its more the general games industry is in a decline at the moment.

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I think they're reacting too wild. The game is definitely recovering now. Give a couple of months and popularity will probably return.

 

They pushed the deadline for the release, that was the big problem making every spoiled gamer cry about the small tings they were used to in WoW. Three months from now they game will flourish!

 

My 2 cents.

 

Are you for real?

 

 

 

Seriously?

 

 

In a few months, popularity will return?

 

 

Talk about having the blinders on..........The game is bleeding subs and has been for months. Theres nothing that will stop gap it anytime soon.

 

Silly..............

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Considering they have publicly announced that they plan to structure all their games to revolve around micro transactions while at the same time stated that their consumers are not going to like it, I would expect this...

 

You can't walk up to stock holders and say your spitting in the eye of your consumers, and not expect them to bail on you.

NO they have not. What was said is that they could see a point in the future where that operating model would likely be employed, but to say that have a "plan" is a gross twisting of the truth.
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Are you for real?

 

 

 

Seriously?

 

 

In a few months, popularity will return?

 

 

Talk about having the blinders on..........The game is bleeding subs and has been for months. Theres nothing that will stop gap it anytime soon.

 

Silly..............

 

I assure you, I am just as real as your sig little piggy. Watch it happened.

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Stocks go up, stocks go down.

 

Oh, and I don't care. I am playing a GAME I have fun with.

 

And if you read the WHOLE article, the entire game industry is suffering.

 

Don't fret, chicken little, the sky is not falling.

 

As this gentlemen states, the MMO gaming industry as a whole is in decline now mainly because developers continue to push difficulty over enjoyment.

 

Games like Minecraft, Call of Duty, Portal and Angry Birds continue to grow in popularity because they can be played with friends and are not overwhelmingly complicated or difficult.

 

Most players don't want to use interrupts, move out of the fire, tank, or heal. They just want to bash the same 2 keys on their keyboard while enjoying the game and playing with friends. Hence the reason, most of the player base (story don't recall the exact number or the article) doesn't do Flashpoints in SWTOR.

 

Bioware talked about this when they said they don't retain very many casual players. This game is WAY too complicated for players like my ex-girlfriend and uncle. Asking them to learn fight mechanics is a lost cause, my ex can't even learn how to drive.

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As this gentlemen states, the MMO gaming industry as a whole is in decline now mainly because developers continue to push difficulty over enjoyment.

 

Games like Minecraft, Call of Duty, Portal and Angry Birds continue to grow in popularity because they can be played with friends and are not overwhelmingly complicated or difficult.

 

Most players don't want to use interrupts, move out of the fire, tank, or heal. They just want to bash the same 2 keys on their keyboard while enjoying the game and playing with friends. Hence the reason, most of the player base (story don't recall the exact number or the article) doesn't do Flashpoints in SWTOR.

 

Bioware talked about this when they said they don't retain very many casual players. This game is WAY too complicated for players like my ex-girlfriend and uncle. Asking them to learn fight mechanics is a lost cause, my ex can't even learn how to drive.

 

Stopped reading when you said Minecraft. Grindiest grind fest with absolutely no instructions for newbies, and you're calling it not overwhelmingly complicated or difficult.

 

Also, Call of Duty is something wannabe gamers play while they chug Mountain Dew Code Red and screaming racist and sexist remarks at strangers on Xbox Live. It uses the most negatively stereotypical marketing there is.

Edited by Gungan
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EA losing 50% of it's stock value since the SWTOR launch? Ouch. What implications does this have for everybody's favorite MMO in space (besides Eve)?

Implication:

My continued schadenfreude as the fanboys continue to proclaim that anyone who has constructive criticism are 'h8ters' 'jealous' or 'losers' wind up alone on a few barren servers in the next year or two.

Edited by zerosaint
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Stocks go up, stocks go down.

 

Oh, and I don't care. I am playing a GAME I have fun with.

 

And if you read the WHOLE article, the entire game industry is suffering.

 

Don't fret, chicken little, the sky is not falling.

 

But his Astroturfing company is paying him 10.50 and hour to make us belive that it is!!!! :rolleyes:

Edited by Jett-Rinn
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http://www.gamesindustry.biz/articles/2012-06-21-stock-ticker-why-eas-market-valuation-has-crashed?utm_source=newsletter&utm_medium=email&utm_campaign=us-daily

 

 

 

EA losing 50% of it's stock value since the SWTOR launch? Ouch. What implications does this have for everybody's favorite MMO in space (besides Eve)?

 

I like that they still bandy about that loss of 400k subscribers as if by now it isn't much, much worse. I still love this game, though! :p

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Bioware talked about this when they said they don't retain very many casual players. This game is WAY too complicated for players like my ex-girlfriend and uncle. Asking them to learn fight mechanics is a lost cause, my ex can't even learn how to drive.

How dumbed down do games have to get? I mean seriously, I've played a ton of MMOs, and WoW and SWTOR are 2 of the easiest most dumbed down ones.

What's wrong with people?

This isn't directed at you sajmanpeetee. I agree with you, and think everything you said is true.

I'm just saying it's very sad that it is true.

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Oh you have to love this idiocy

 

"For SWTOR to fail makes Riccitiello's entire strategy look dodgy to investors who were already deeply concerned by the slow pace of progress"

 

I wouldn't call being the number two Subscriber based MMO a failure also all this tells us is any problems that TOR now has can be blamed on impatient money grubbing Know nothings that wanted to make quick return on their investment

Edited by Jett-Rinn
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http://www.gamesindustry.biz/articles/2012-06-21-stock-ticker-why-eas-market-valuation-has-crashed?utm_source=newsletter&utm_medium=email&utm_campaign=us-daily

 

 

 

EA losing 50% of it's stock value since the SWTOR launch? Ouch. What implications does this have for everybody's favorite MMO in space (besides Eve)?

 

intresting I didnt realize SWTOR was EA's only game.

 

As others said stocks go up stocks go down. It really has no affect what so ever on us the gamers.

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