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CNBC Interview with EA CEO John Riccitiello

STAR WARS: The Old Republic > English > General Discussion
CNBC Interview with EA CEO John Riccitiello

DarthOvertone's Avatar


DarthOvertone
07.19.2012 , 04:57 PM | #31
My first thought when seeing this video was that I want to do naughty things to Julia Borsten(sp?). Also, did you guys see that cameo by Glenn Close midway through the vid?

In regard to the actual content of the interview, everything I have purchased game-wise in the past three years has been completely digital. I can't believe digital sales only make up 40% of EA's sales. If that is the case, then Riccitiello is right and there is definitely room for EA to make a huge move in digital.

The way Riccitiello responded to the SWTOR subscription question was interesting. He sort of blew it off as old news. This gave me the vibe that he has seen recent sub numbers and is fairly satisfied with the state of things. It actually makes me more confident that the SWTOR subscriber base is strong.

Console gaming is on the slide, and with new platforms like Ouya on the horizon, EA is in a pretty good position to do well if they are quick to adapt with digital content. A lot better off than say Microsoft, Sony or Nintendo.

I know everyone hates EA, but their stock is pretty ridiculously low right now. I think he's right in calling it a good buying opportunity.
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SWTOR 4.3: It was good while it lasted. Thanks BW

Deewe's Avatar


Deewe
07.19.2012 , 05:09 PM | #32
Quote: Originally Posted by DarthOvertone View Post
My first thought when seeing this video was that I want to do naughty things to Julia Borsten(sp?). Also, did you guys see that cameo by Glenn Close midway through the vid?

In regard to the actual content of the interview, everything I have purchased game-wise in the past three years has been completely digital. I can't believe digital sales only make up 40% of EA's sales. If that is the case, then Riccitiello is right and there is definitely room for EA to make a huge move in digital.

The way Riccitiello responded to the SWTOR subscription question was interesting. He sort of blew it off as old news. This gave me the vibe that he has seen recent sub numbers and is fairly satisfied with the state of things. It actually makes me more confident that the SWTOR subscriber base is strong.

Console gaming is on the slide, and with new platforms like Ouya on the horizon, EA is in a pretty good position to do well if they are quick to adapt with digital content. A lot better off than say Microsoft, Sony or Nintendo.

I know everyone hates EA, but their stock is pretty ridiculously low right now. I think he's right in calling it a good buying opportunity.
Thanks to the OP and ^this.
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FattyMcElbows's Avatar


FattyMcElbows
07.19.2012 , 11:51 PM | #33
Quote: Originally Posted by Jazshen View Post
*facepalm*

What you - and it seems, others - fail to realise is HOW BIG Madden, FIFA and these other franchises actually are in comparison to MMO's.

Let's take the Sims. Do you know how many copies of the Sims franchise have sold? 150 MILLION (as of May 2011. Never mind 2012). What's that, over 10x the amount of Warcraft subs? It's the single best-selling franchise on the PC. Ever. And think of all the expansion packs, the Store, all the things you can buy for the Sims. That's how big the Sims is. Hell, the Sims has so much you can buy I'd almost want to subscribe to it to get everything ;P

You will *never* see an MMO reach that kind of crazy height, because MMO's are, Warcraft aside, fairly niche.

People aren't looking at this in perspective. It's not that 'why isn't TOR doing anywhere near as good as those titles'. Because it's not about TOR not being 'good'. It's about these franchises being so huge, so popular, such well-known household names that the money they make just dwarfs other games in comparision.

Some more stats (all of these and the above pulled off Wikipedia)

Battlefield 3 - sold 5 million copies in it's first week.
The FIFA series - 100 million worldwide.
The Madden series - 85 million as of 2010, making *$3 billion* in sales.

Those are *big numbers* and I would wager even WoW would struggle to keep up with some of them.
. . .

Yes, *facepalm* indeed. You seem to be discounting subscriptions. You know, almost the entire basis of income made from MMOs.

EA releases an iteration of Madden, FIFA, and a few other titles once a year every year. Activision releases a Call of Duty every year. Blizzard (and Bioware, I suppose) releases a new expansion for their major MMO every three years or so . . . Yet they get paid as if they released three new AAA titles per year. With WoW's subscription numbers, that's essentially 30 million units sold. Per year. Without producing any significant new content. And not including expansions. That's 20 years of the Madden series covered in three and 15 years of The Sims covered in five. Maybe Bioware and EA were pragmatic enough to realize they would never reach WoW's numbers, but you can't tell me they weren't expecting a bigger chunk of the pie than this. Even 3 million subscribers would put TOR in the same league as FIFA and well ahead of Madden.

AFKGCWBOT's Avatar


AFKGCWBOT
07.20.2012 , 12:26 AM | #34
Quote: Originally Posted by Sporin View Post
Love how he goes on about "their" high rollers that are doing so well... like Madden, Fifa, BF, MoH and the Sims! Guess TOR is invisible and when he does go on about it (after having to be asked) he says "it's a open sore!" ..wowzers!
As for the "play free til 15 & be hooked" (I tried to keep a straight face! Honest!)... I only wish that had been out from day 1, I'd be $200 richer!

*sings "Where is the love?"*
So you waste $200 on any new MMO that comes out? I wish I had that kind of money...

RobNightfall's Avatar


RobNightfall
07.20.2012 , 12:48 AM | #35
Quote: Originally Posted by Achyllis View Post
Here is a summary for anyone not wanting to invest the time to listen to EA's business pitch as to "why we're undervauled at $11.50".

Console and software retail sales are irrelevant. Investors don't understand the shift in the industry from retail to digital.

As to TOR specifically:
1) falling sub numbers are an old story from 11 weeks ago
2) we have a great product
3) sub model vs. f2p is challenging us
4) f2p is anything but free - the first gameplay is free - our content is great and once players are exposed to it they really want it

My comments - I live in MO and have adopted their motto - show me. Let's see what your sub numbers do over the next 6 months once the major "new big things" all hit the market.

BW leadership is leaving. Let's see who takes charge of BW and what he/she can do to engage the community and retain those subs once folks have beaten story mode.
Yep the EA/BW-tanic is slowly sinking. It's a shame, BW by itself and SWTOR both had a lot of potential.
Edited because the devs appear to have fixed at least 80% of the crap that was pissing me off.

limenutpen's Avatar


limenutpen
07.20.2012 , 03:52 AM | #36
Thinking how big Stock listed businesses model act with their buying companies, if SWTOR fails I would not be surprised for them to sell BioWare all together. This a very expensive close to 200 million US$ project, and the current layoffs of senior management in BW and involved with the game also hint at this.

And IMO for them at the moment SWTOR is a failure, even with 1 million subs. Yes they cover the expenses with that number for the project, but I think they had a forecast of 2 million subs average the first year not 1 million.

This my 2 cents on a business perspective.

Leggomy's Avatar


Leggomy
07.20.2012 , 04:43 AM | #37
Quote: Originally Posted by FattyMcElbows View Post
. . .

Maybe Bioware and EA were pragmatic enough to realize they would never reach WoW's numbers, but you can't tell me they weren't expecting a bigger chunk of the pie than this. Even 3 million subscribers would put TOR in the same league as FIFA and well ahead of Madden.
Noone is ever going to reach WoW's numbers. Simply wont happen. WoW runs on anything even my cousin's HP from 2007 runs it great. It wouldnt even let him install star wars because he only has 128mb vid card. I know you guys say well upgrade. He doesnt have the money to upgrade and WoW runs fine.

WoW is a one-off kind of thing. You will never see another MMO even come close to them. 3 million subs for swtor is dream. They better try to keep the 500-800k or so they have left instead of trying to aim for WoW numbers. Lets keep the game online.

Yokomohoyos's Avatar


Yokomohoyos
07.20.2012 , 09:31 AM | #38
Quote: Originally Posted by Arnasdam View Post
Article on Escapist Where I found the video

CNBC Page

Video Link
SWTOR comes up in the video around the 8 minute mark.
Thank you for posting this information.

Some of the comments on the forum thread are flat out hilarious. I am so glad that I unsubbed. I am still waiting to see if the developers for this game BW and EA actually turn this around.

Seeing as how the CEO of EA and by extension BW as it is a subsidiary of EA, is comparing it's business mode to Zynga and trying to advertise that EA, as a whole is doing "phenomenally well" while the SWTOR fans suffer from the "open sore" that this is tells me exactly where us the unfortunate subscribers fall in the priorities scheme for the publisher and co-developer for this game, EA. Not very high indeed.

The last product that EA was involved in that actually met my expectations was Might & Magic for Sega Genesis. Heroes of Might & Magic VI for the PC was also enjoyable at least for me.

At least I am happy to know now, where i stand with regards to my subscription and what it matters to EA. A tiny drop in a bucket for which they are grateful and will not address as this game SW:TOR is just a minuscule component of their project portfolio. A CEO claiming that investors do not understand the gaming industry...? SEC is who needs to understand how your numbers work. Bottom line, if you are not profitable, your stock will continue to show it.

Investors believe in a product and they, wait for it, invest in it. As they no longer believe in a product gues what, they stop investing in it. EA gets less funds from investors as a result. Best of luck trying to salvage the circus of a Public Relations that you made for yourself Mr. CEO. Perhaps you should "invest" in some media training classes / seminars, you need them. Or step down from your post before your current investors / Board of Directors ask you to do so. Seems like you have enough money to retire safely.

Stop messing around with franchises that you evidently do not understand. Maybe you did pick the wrong industry. If MMOs are so hard to compete in if they are not FtP, then why charge so much money for a product of sub-par quality and sub-par support?

Goodbye.
I unsubscribed to this game and still have time remaining on it. I am hopeful - probably naive in that regard - that EA / BioWare will make this game the fruitful business venture that it *can be* and still warrant continued subscription. There are other leisure activities in the universe.

Urael's Avatar


Urael
07.20.2012 , 10:16 AM | #39
Quote: Originally Posted by Yokomohoyos View Post
Perhaps you should "invest" in some media training classes / seminars, you need them. Or step down from your post before your current investors / Board of Directors ask you to do so. Seems like you have enough money to retire safely.
Not just their CEO but EVERYONE that gives an interview, writes a press release, or officially puts information out on these forums needs to do the same. It's either "spin" or "foot-in-mouth" and always nothing of value. Usually the "information" just fuels rage, rumor, and tin foil hats. GJ EA/BW ... GJ.

Achromatis's Avatar


Achromatis
07.20.2012 , 10:53 AM | #40
Quote: Originally Posted by Urael View Post
Not just their CEO but EVERYONE that gives an interview, writes a press release, or officially puts information out on these forums needs to do the same. It's either "spin" or "foot-in-mouth" and always nothing of value. Usually the "information" just fuels rage, rumor, and tin foil hats. GJ EA/BW ... GJ.
Which isnt any different from any other MMO (WoW, LotRO, AoC, Rift, et al). As soon as anyone from the developer/publishers say something, the "fan" base rips it apart and complains about it - whether or not it was said well and intelligently.
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