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EA Q1 2014: SWTOR Income Growth

STAR WARS: The Old Republic > English > General Discussion
EA Q1 2014: SWTOR Income Growth

evodude's Avatar


evodude
07.24.2013 , 07:51 AM | #41
glad to see profits happening, means my fav game stays opne awhile longer

Quraswren's Avatar


Quraswren
07.24.2013 , 07:54 AM | #42
That is good news.

Though I still feel this game needs a lot of development.

curtkram's Avatar


curtkram
07.24.2013 , 07:59 AM | #43
swtor is not dead, and likely will not fold this year. so, if you want to be optimistic, that's definitely something to be optimistic about.

the OP forgot to include
Quote:
And fourth, subscriptions, advertising, and other digital revenue contributed $61 million, down 25% over the same period last year
which is offset by what the OP did say
Quote:
If you were to combine all of our extra content free-to-play with subscription, ads, and other, we still saw more than 10% growth over the same period last year.
but they aren't talking about swtor exclusively. these are overall numbers for similar game types. so, as the OP pointed out:
Quote:
extra content and free-to-play contributed $177 million, up 35% over the prior year, led by sustain ed growth in FIFA Ultimate Team
they don't actually make money off f2p right? in swtor, they make money off subscriptions, cartel purchases, and expansions. maybe they make ad revenue? are there ads in-game?
also this
Quote:
Our results also reflect the phasing of expenses out of Q1 into future quarters.
which means some of their growth this quarter is because they're pushing expenses into next quarter.

extra content and f2p make them money. for swtor, does that just means makeb? as they stated, their growth in this category is led by FIFA. so, that $177million does not mean swtor is wildly successful. it does seem to be contributing to this profit in a positive way though.

their profits from subscriptions and digital revenue seem to be dropping. wouldn't the cartel market be 'digital revenue?' they don't really say if they are going to refocus on improving this area or not. if they want to invest in their $177 million instead of $61 million, and push up the 35% growth instead of throwing resources at the 25% decline, then i don't think that looks good for subscribers. that means less subscriber incentives and less subscriber content. if they made money on expansions, maybe they'll start charging for patches.

also, there is this:
Quote:
console transition year
honestly, if that's right, i think bioware should just end the subscription option. make 'preffered' status more reasonable, come out with new gambling packs every couple weeks, and charge $20 every other month for content updates. if they're going to give up on adding value to subscriptions with actual content patches, quit the charade.

TUXs's Avatar


TUXs
07.24.2013 , 08:00 AM | #44
Quote: Originally Posted by Tsillah View Post
My guess (and this is just a guess) is that subs probably spend more cash in the CM than f2p'ers. Think about that idea for a second.
Um...that's not a guess, that's TRUE! Of course subs spend more on the cash shop, subs are the reason for the increased revenue, not F2Pers. Subs are already willing to fork out $ for this game, of course we're prone to paying for more "stuff". Subs increased the revenue, despite the drop in subscribers.
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Nickious's Avatar


Nickious
07.24.2013 , 08:14 AM | #45
I'm glad there was a increase revenue, regardless of the source. Hopefully the increase in revenue is justification for more content and features.

curtkram's Avatar


curtkram
07.24.2013 , 08:14 AM | #46
so, they aren't making that much profit.

Quote:
The increase was due to a focused effort to reduce online support costs and solid results from our digital revenue offerings
reducing support costs isn't good if you need support.
Quote:
but a majority of the positive variance is due to phasing of key expenses in both marketing and headcount
means they're pushing the (-) column into the future. they're counting revue as a (+) but not taking out the (-)
Quote:
During the quarter, we did not repurchase any shares.
pushing the (-) out to the future.
regarding Q2 outlook
Quote:
Operating expenses will be impacted by the phasing of some operating expenses from Q1.
pushing (-) out.
Quote:
As I said earlier, some of the favorable operating expense results were due to phasing, and we expect that spending to occur in future quarters.
also, this
Quote:
We have developed a deeper relationship with our gamers, resulting from our growing games-as-a-service model.
i feel like eric has been quiet and they won't tell me why they screwed up their server transfer process so bad. come on guys, if you're want to communicate, try communicating. a cantina event that most of us are unable to attend isn't helping all that much. and cutting your online support costs isn't going to build a deeper relationship. if you want a deeper relationship with your gamers, try supporting them a bit.

and this
Quote:
In the months ahead we expect to forge additional agreements to bring EA’s biggest brands to new consumers in Asia and other new markets.
for swtor, they closed those servers.....

Kamansus's Avatar


Kamansus
07.24.2013 , 10:10 AM | #47
Quote: Originally Posted by curtkram View Post
so, they aren't making that much profit.


reducing support costs isn't good if you need support.

means they're pushing the (-) column into the future. they're counting revue as a (+) but not taking out the (-)

pushing the (-) out to the future.
regarding Q2 outlook

pushing (-) out.


also, this

i feel like eric has been quiet and they won't tell me why they screwed up their server transfer process so bad. come on guys, if you're want to communicate, try communicating. a cantina event that most of us are unable to attend isn't helping all that much. and cutting your online support costs isn't going to build a deeper relationship. if you want a deeper relationship with your gamers, try supporting them a bit.

and this

for swtor, they closed those servers.....
You're reading into things that regard other games and EA management in a more general sense. EA has said that they have doubled their monthly profits from SWTOR since F2P conversion, I think their profit margin is fine.

Angedechu's Avatar


Angedechu
07.24.2013 , 10:18 AM | #48
Our results also reflect the phasing of expenses out of Q1 into future quarters...

This sentence, while not surprising, is a serious cold shower.

On the other hand, the OP quote, which I can't find, say that the revenue grew by 10%. If American business language keep the same meaning to those words than the direct french translation, the revenue means ''the cash flow''. The net income, the margin, could have been improved with cost cutting measures, but not the income.

IE, if they had said ''our profits grew by 10%'', this could have meant ''we cut on maintenance''

But ''our revenues grew by 10%'' seems to mean ''our cashflow in 10% better''

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AlienEyeTX
07.24.2013 , 10:27 AM | #49
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TheSeventhJedi's Avatar


TheSeventhJedi
07.24.2013 , 10:31 AM | #50
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