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SWTOR and the EA stock plummet

STAR WARS: The Old Republic > English > General Discussion
SWTOR and the EA stock plummet

Taurusaud's Avatar


Taurusaud
06.21.2012 , 02:45 PM | #1
http://www.gamesindustry.biz/article...paign=us-daily

Quote:
"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)?

Veluthurk's Avatar


Veluthurk
06.21.2012 , 02:48 PM | #2
Quote: Originally Posted by Taurusaud View Post
http://www.gamesindustry.biz/article...paign=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)?
None for me.

OmegaMayhem's Avatar


OmegaMayhem
06.21.2012 , 02:51 PM | #3
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.

TapSumBatt's Avatar


TapSumBatt
06.21.2012 , 02:52 PM | #4
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.

Codek's Avatar


Codek
06.21.2012 , 02:53 PM | #5
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.
~Codek

Photoshop's Avatar


Photoshop
06.21.2012 , 02:56 PM | #6
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"

Sagimore's Avatar


Sagimore
06.21.2012 , 02:57 PM | #7
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.

MasterKayote's Avatar


MasterKayote
06.21.2012 , 02:58 PM | #8
It would be sad, because we'd lose SWTOR ... but if I live so see the day EA goes down ... Id throw a #@$&ing party!

Galbatorrix's Avatar


Galbatorrix
06.21.2012 , 02:59 PM | #9
Quote: Originally Posted by Veluthurk View Post
None for me.
Me either. Ever hear the expression, "Drive that mutha till the wheels fall off"? Well, that's were I stand with this game.

Ashlian's Avatar


Ashlian
06.21.2012 , 03:08 PM | #10
Quote: Originally Posted by Photoshop View Post
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.