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EA financials are up, SWTOR mentioned

2

Comments

  • pantaropantaro Member RarePosts: 515
    Originally posted by Archlyte
    Originally posted by hikaru77
    Originally posted by NagilumSadow

    From 2012:

     

    "When BioWare created Star Wars: The Old Republic, the developer intended for it to be a huge blockbuster MMORPG, with millions of subscribers dutifully paying their fees for years and years. However, BioWare spent most of its money on single player story content, wrapped up in all the worst time-sink tropes that pervade the MMORPG genre. Design elements that players suffer through [...]"

    I dont get it, is that time of the day again?.  

    Thats from 2012, we are in the 2014 and SWTOR is among the most played MMOs on the market. 

     

     

    Because it has the Star Wars IP. Nobody plays that game for any other reason.

    ain't that the truth. development in that game is such a joke.people want that star wars mmo fix so they deal with the game and blow money on the cash shop.

  • TheLizardbonesTheLizardbones Member CommonPosts: 10,910
    Originally posted by Uhwop
    Originally posted by hikaru77
    Originally posted by NagilumSadow

    From 2012:

     

    "When BioWare created Star Wars: The Old Republic, the developer intended for it to be a huge blockbuster MMORPG, with millions of subscribers dutifully paying their fees for years and years. However, BioWare spent most of its money on single player story content, wrapped up in all the worst time-sink tropes that pervade the MMORPG genre. Design elements that players suffer through [...]"

    I dont get it, is that time of the day again?.  

    Thats from 2012, we are in the 2014 and SWTOR is among the most played MMOs on the market. 

     

     

    I'm just curious where you get that info from. 

    According to EA ToR keeps loosing money each year.  

    Or do you think that EA cares if the game has more people playing than any other game, if the game keeps earning less each year?  Most played means very little if its revenue keeps going down.  

     

    The game may be losing money, but it seems unlikely since EA hasn't shut it down.  The game is certainly making less money than this same time last year though, which isn't the same thing as losing money.  It's also not a surprise.  This is what happens to games over time.  They peak, and then make less money over time.  The peak happens much earlier in the cycle than the first few MMORPGs, but the peak is also generally much higher.  The "run off" lasts just as long.

     

    I can not remember winning or losing a single debate on the internet.

  • DrakephireDrakephire Member UncommonPosts: 451
    Originally posted by SuperDonk

    People are still spending money on SimCity? That is exactly the reason EA has never bothered to improve, well that and exclusive contracts.

     

    They can release the worst game that I can remember since Outpost and people are still buying the over-priced crap DLC... Gamers are clearly the problem, not the other way around.

    While I didn't buy any DLC, I did buy the game well after release on the recommendation of a Youtuber whom I trust. I was reluctant early on because of the poor reviews, but then reports were that it was 'fixed'. What a bunch of hooey.  The game logic is simply atrocious. Traffic supposedly fixed? Nope. Still the horrible pathing that was reported at launch.

     

    I was so disappointed that a friend bought me a copy of Cities XL and gave it to me as consolation, lol. That game is actually fun, and ten times better than ShitCity.

     

     

  • zevianzevian Member UncommonPosts: 403
    Originally posted by Drakephire
    Not surprised The Sims is on the same list.  Heard wasn't that good, just like SimCity was poorly done. EA should just stick to sports games. Really.

    The sims $ is doing well actually.   If you opent he report and read the full line the OP truncated it says "For the three months ended September 30, 2014 , packaged goods and other was $767 million , primarily driven by FIFA 15 , Madden NFL 15 , and The Sims 4"

     

    Sims 4 does good in box sales.

    For the three months ended September 30, 2014 , Digital was $453 million , an increase of $ 105 million , or 30 percent , as compared to the three months ended September 30, 2013 . This increase is due to (1) a $39 million or 71 percent increase in full-game download sales primarily driven by The Sims 4, Madden NFL 15 , and Plants vs. Zombies: Garden Warfare, (2) a $26

     

    once again in digital sales the Sims 4 helped prop up revenue.

     

    The Decreases in revenue you see from The Sims Franchise are related to a new game coming out and the loss of expansion pack sales.  (people buying 1 50$ game vs a game and a bunch of 20$ expansions).

     

    Cheers     Oh and the game is just like any other Sims  barren on content until packs start to come out, this one however runs much smoother than the last and EA is actually releasing free content.

     

  • Azaron_NightbladeAzaron_Nightblade Member EpicPosts: 4,829
    Originally posted by Archlyte
    Originally posted by Amjoco
    Originally posted by Archlyte
    Originally posted by hikaru77
    Originally posted by NagilumSadow

    From 2012:

     

    "When BioWare created Star Wars: The Old Republic, the developer intended for it to be a huge blockbuster MMORPG, with millions of subscribers dutifully paying their fees for years and years. However, BioWare spent most of its money on single player story content, wrapped up in all the worst time-sink tropes that pervade the MMORPG genre. Design elements that players suffer through [...]"

    I dont get it, is that time of the day again?.  

    Thats from 2012, we are in the 2014 and SWTOR is among the most played MMOs on the market. 

     

     

    Because it has the Star Wars IP. Nobody plays that game for any other reason.

    You are kidding of course. People don't just play something that isn't fun simply because it is well known. SWG has shut down.

    You are a fool if you cant acknowledge that SWTOR is populated for the same reason people buy the rest of the useless Star Wars merchandising. SWTOR is the MMORPG version of a Jar Jar Bobblehead.

    That only holds up for the really "passionate" Star Wars fans*, of which the community doesn't have nearly as many as some people here want to sell.

    I never bought any EU novels (beyond "Revan", because of the connection to KOTOR and SWTOR) and I haven't watched the movies "hundreds of times".

    And unlike those who only play "because it's Star Wars" I'd be long gone if the game didn't hold my attention.

    The IP and the Bioware name do a good job drawing in people, but if they don't like what they see they'll still leave.

     

    * AKA the ones that also collect all things Star Wars.

    My SWTOR referral link for those wanting to give the game a try. (Newbies get a welcome package while returning players get a few account upgrades to help with their preferred status.)

    https://www.ashesofcreation.com/ref/Callaron/

  • GardavsshadeGardavsshade Member UncommonPosts: 907
    Originally posted by hikaru77
    Originally posted by NagilumSadow

    From 2012:

     

    "When BioWare created Star Wars: The Old Republic, the developer intended for it to be a huge blockbuster MMORPG, with millions of subscribers dutifully paying their fees for years and years. However, BioWare spent most of its money on single player story content, wrapped up in all the worst time-sink tropes that pervade the MMORPG genre. Design elements that players suffer through [...]"

    I dont get it, is that time of the day again?.  

    Thats from 2012, we are in the 2014 and SWTOR is among the most played MMOs on the market. 

    If I remember correctly EA posts how many players Log In to the game, not how many hours each Player spends playing the game.

    In a MMO how many hours each Player spends playing the game is what really matters. I myself just update the client and log in every week or so just to see what new items are available, but other than that I don't actually play the game or spend time in it nor do I spend money on it.

    If EA is just reporting log ins... does that really mean it's actually "among the most played MMOs on the market"? No it doesn't.  It just means the log in server is busy and those numbers look good to Stock Holders who don't know much about MMOs.

     

  • gervaise1gervaise1 Member EpicPosts: 6,919

    ^^^^^

    No. Bioware gave out a 1M+ a month "somethings" number recently and a 1M+ a month number last year; based on the wording though it could have been 33k a day or 1M a day.

    As said above it could have made a loss - but all we know is "it made less money than last year". Which EA should have expected. Destiny though may have made things worse. 

    Next quarter they will have assumed another number - probably an uptick due to Revan and then a drop etc. 

    And there will come a point when their projections indicate that the game "won't be making enough profit". (Could still be day-to-day profitable.) And then they will take other factors into account such as:

    • SW Battlefields next year - some sort of f2p they said; will players move to it if SWTOR is closed maybe?
    • to what extent is SWTOR promoting the brand? 
    And at that point they will announce that in a years time - or whatever - the game will be closed. Maybe next year maybe at the end of their agreement with Disney.
  • hikaru77hikaru77 Member UncommonPosts: 1,123
    Originally posted by gervaise1

    ^^^^^

    No. Bioware gave out a 1M+ a month "somethings" number recently and a 1M+ a month number last year; based on the wording though it could have been 33k a day or 1M a day.

    As said above it could have made a loss - but all we know is "it made less money than last year". Which EA should have expected. Destiny though may have made things worse. 

    Next quarter they will have assumed another number - probably an uptick due to Revan and then a drop etc. 

    And there will come a point when their projections indicate that the game "won't be making enough profit". (Could still be day-to-day profitable.) And then they will take other factors into account such as:

    • SW Battlefields next year - some sort of f2p they said; will players move to it if SWTOR is closed maybe?
    • to what extent is SWTOR promoting the brand? 
    And at that point they will announce that in a years time - or whatever - the game will be closed. Maybe next year maybe at the end of their agreement with Disney.

    There is already a SWTOR 4.0 in the works and the only rumour about a new SW MMO is about SWTOR 2. But is pretty much a fake. since BW and SWTOR have now a 10 years license. 

  • hallucigenocidehallucigenocide Member RarePosts: 1,015
    Originally posted by Archlyte
    Originally posted by Amjoco
    Originally posted by Archlyte
    Originally posted by hikaru77
    Originally posted by NagilumSadow

    From 2012:

     

    "When BioWare created Star Wars: The Old Republic, the developer intended for it to be a huge blockbuster MMORPG, with millions of subscribers dutifully paying their fees for years and years. However, BioWare spent most of its money on single player story content, wrapped up in all the worst time-sink tropes that pervade the MMORPG genre. Design elements that players suffer through [...]"

    I dont get it, is that time of the day again?.  

    Thats from 2012, we are in the 2014 and SWTOR is among the most played MMOs on the market. 

     

     

    Because it has the Star Wars IP. Nobody plays that game for any other reason.

    You are kidding of course. People don't just play something that isn't fun simply because it is well known. SWG has shut down.

    You are a fool if you cant acknowledge that SWTOR is populated for the same reason people buy the rest of the useless Star Wars merchandising. SWTOR is the MMORPG version of a Jar Jar Bobblehead.

    not quite true.. im no die hard SW fan and i've enjoyed this game since release.. i've even had quite a few guildies that could care less about the IP they just enjoy the game because well it's a fun game to play.

    I had fun once, it was terrible.

  • CrazKanukCrazKanuk Member EpicPosts: 6,130
    Originally posted by Gardavsshade
    Originally posted by hikaru77
    Originally posted by NagilumSadow

    From 2012:

     

    "When BioWare created Star Wars: The Old Republic, the developer intended for it to be a huge blockbuster MMORPG, with millions of subscribers dutifully paying their fees for years and years. However, BioWare spent most of its money on single player story content, wrapped up in all the worst time-sink tropes that pervade the MMORPG genre. Design elements that players suffer through [...]"

    I dont get it, is that time of the day again?.  

    Thats from 2012, we are in the 2014 and SWTOR is among the most played MMOs on the market. 

    If I remember correctly EA posts how many players Log In to the game, not how many hours each Player spends playing the game.

    In a MMO how many hours each Player spends playing the game is what really matters. I myself just update the client and log in every week or so just to see what new items are available, but other than that I don't actually play the game or spend time in it nor do I spend money on it.

    If EA is just reporting log ins... does that really mean it's actually "among the most played MMOs on the market"? No it doesn't.  It just means the log in server is busy and those numbers look good to Stock Holders who don't know much about MMOs.

     

    And what does $100+ in revenues tell us? *drop the mic* k thx bye. 

    Crazkanuk

    ----------------
    Azarelos - 90 Hunter - Emerald
    Durnzig - 90 Paladin - Emerald
    Demonicron - 90 Death Knight - Emerald Dream - US
    Tankinpain - 90 Monk - Azjol-Nerub - US
    Brindell - 90 Warrior - Emerald Dream - US
    ----------------

  • goboygogoboygo Member RarePosts: 2,141
    Originally posted by kitarad

    Revenue is what a company earns right ? So when they say decrease of revenue is that what they expected to earn ?  I am a bit confused about business terms. I would think when you say deficit in revenue in my understanding that the figure takes into account the license they have to pay to Disney for use of the license plus whatever operating costs. Revenue is earning so a deficit in earnings does that include what they make from the cash shop or only services like subscription. If it is subscription then it makes perfect sense that there is a deficit as the game is primarily a F2P.

     

    Like Crazkanuk pointed out they never said it was a loss or that they are operating SWTOR at a loss what they have is a deficit in revenue. Have to determine what the revenue is that they are referring to. Subscriptions or the fact that the game is no longer sold but f2p.

     

    I found the meaning here it is projected revenue.

     

    http://www.investopedia.com/terms/r/revenuedeficit.asp

     

    For example, consider an organization with budgeted revenue of $325,000 and budgeted expenditures of $200,000, which equates to a net amount of $125,000. During the fiscal year, the organization's total revenue is actually $300,000, while its total expenditure is $195,000. The net amount received by the organization is $105,000, which is $20,000 less than the projected receipt of $125,000. Therefore, although the organization generated a positive net amount of proceeds, it fell short of the projected amount, creating a revenue deficit.

     

     

     So they earned less than what they expected I guess.

    Your analogy is pretty good.  Losing money is totally different then saying revenue is down.  Your revenue may be down, or not on budget but you could still have positive cash flow.  The problem for companies when this happens is that it affects stock prices, development (based on a budgeted revenue, or company bonuses. 

    Ive worked for companies that made tons of money (profit) but not as much as projected so no one got a bonus even though we all worked our asses off.

    ITs just business.

  • gervaise1gervaise1 Member EpicPosts: 6,919
    Originally posted by hikaru77
    Originally posted by gervaise1

     

    There is already a SWTOR 4.0 in the works and the only rumour about a new SW MMO is about SWTOR 2. But is pretty much a fake. since BW and SWTOR have now a 10 years license. 

    As far as a new SWTOR goes - shrug; as you say they have (what is left) of the 10 year license agreement which means that only EA and Disney can develop SW titles.

    SW Battlefields is being developed by DICE (an EA studio), is based on the Frostbite engine (the BF engine), and will - which I picked up when I checked the OP's link - will be "f2p" when it releases, whatever that means. 

  • gervaise1gervaise1 Member EpicPosts: 6,919
    Originally posted by CrazKanuk
    Originally posted by Gardavsshade
     

    If EA is just reporting log ins... does that really mean it's actually "among the most played MMOs on the market"? No it doesn't.  It just means the log in server is busy and those numbers look good to Stock Holders who don't know much about MMOs.

     

    And what does $100+ in revenues tell us? *drop the mic* k thx bye. 

    Nothing. Other than EA saying that SWTOR is contributing to their revenue that is actually all we know. I doubt it is making a loss - but I don't know. The $100M+ number is just a guess, nothing more.

    As for logins or whatever again EA doesn't release them. Bioware c. 12 months ago talked about 1M "somethings" a month and made the same comment last month. They actually made it sound as though SWTOR was doing better.

    And maybe SWTOR is doing better than "this time last year" - that wouldn't contradict with EA saying that Jul-Sept just gone was financially well down on Jul-Sept last year. 

    It shows that unless there is hard data - not guesses - people shouldn't read to much into them.

    I think the only reason that EA released the SWTOR and SimCity data was that the decline made it look like their other newer releases were doing less well than maybe analysts hoped. They can now say BF, Titanfall etc. $140M up but without those laggards (SWTOR & SimCity) it would have been $200M+ and so the future financial projections will look much better. And that is what will feed through to investors.

  • SoandsosoSoandsoso Member Posts: 533
    SwTor hate still going on....so funny.
  • CrazKanukCrazKanuk Member EpicPosts: 6,130
    Originally posted by Soandsoso
    SwTor hate still going on....so funny.

    There must be some metric here that'll tell us how well SWTOR is doing. I mean we look at WoW (tons of hate), Destiny (tons of hate), anything that really sucks? Zero hate. Need more proof? Just look through any listing of metacritic game or movie reviews. 

    Crazkanuk

    ----------------
    Azarelos - 90 Hunter - Emerald
    Durnzig - 90 Paladin - Emerald
    Demonicron - 90 Death Knight - Emerald Dream - US
    Tankinpain - 90 Monk - Azjol-Nerub - US
    Brindell - 90 Warrior - Emerald Dream - US
    ----------------

  • DrakephireDrakephire Member UncommonPosts: 451
    Originally posted by zevian
    Originally posted by Drakephire
    Not surprised The Sims is on the same list.  Heard wasn't that good, just like SimCity was poorly done. EA should just stick to sports games. Really.

    The sims $ is doing well actually.   If you opent he report and read the full line the OP truncated it says "For the three months ended September 30, 2014 , packaged goods and other was $767 million , primarily driven by FIFA 15 , Madden NFL 15 , and The Sims 4"

     

    Sims 4 does good in box sales.

    For the three months ended September 30, 2014 , Digital was $453 million , an increase of $ 105 million , or 30 percent , as compared to the three months ended September 30, 2013 . This increase is due to (1) a $39 million or 71 percent increase in full-game download sales primarily driven by The Sims 4, Madden NFL 15 , and Plants vs. Zombies: Garden Warfare, (2) a $26

     

    once again in digital sales the Sims 4 helped prop up revenue.

     

    The Decreases in revenue you see from The Sims Franchise are related to a new game coming out and the loss of expansion pack sales.  (people buying 1 50$ game vs a game and a bunch of 20$ expansions).

     

    Cheers     Oh and the game is just like any other Sims  barren on content until packs start to come out, this one however runs much smoother than the last and EA is actually releasing free content.

     

    Sure. You make good points, and I'll defer to your experience.

  • DrakephireDrakephire Member UncommonPosts: 451
    Originally posted by Soandsoso
    SwTor hate still going on....so funny.

    heh, I don't hate SWTOR so much as I despise EA.

  • DrakephireDrakephire Member UncommonPosts: 451
    Originally posted by CrazKanuk
    Originally posted by Soandsoso
    SwTor hate still going on....so funny.

    There must be some metric here that'll tell us how well SWTOR is doing. I mean we look at WoW (tons of hate), Destiny (tons of hate), anything that really sucks? Zero hate. Need more proof? Just look through any listing of metacritic game or movie reviews. 

    I laugh because it's true.

  • maybebakedmaybebaked Member UncommonPosts: 305
    Originally posted by Kuinn
    World of Warcraft has decreased almost 50% from its peak years, and last I heard it's going to release new content updates more frequently than ever. Go figure.

    50% is still over 6 million subscribers. We have seen from other publications, SWTOR is still making a nice profit for EA, so I'm not understanding the point of the OP.  It's EA, they will drag this title through the mud for as long as they make any money, especially now that Disney has taken over the IP. If there's one thing that companies like EA and Disney love it's money, well that's about the only thing.......

  • ArchlyteArchlyte Member RarePosts: 1,405
    Originally posted by Bannuk
    Originally posted by Archlyte
    Originally posted by hikaru77
    Originally posted by Archlyte
    Originally posted by hikaru77
    Originally posted by NagilumSadow

    From 2012:

     

    "When BioWare created Star Wars: The Old Republic, the developer intended for it to be a huge blockbuster MMORPG, with millions of subscribers dutifully paying their fees for years and years. However, BioWare spent most of its money on single player story content, wrapped up in all the worst time-sink tropes that pervade the MMORPG genre. Design elements that players suffer through [...]"

    I dont get it, is that time of the day again?.  

    Thats from 2012, we are in the 2014 and SWTOR is among the most played MMOs on the market. 

     

     

    Because it has the Star Wars IP. Nobody plays that game for any other reason.

    Is your point of view.      

    Don't be in denial

    Even though you think you are important and your opinion is fact, neither is true, just like every other anonymous poster on these forums.

    Including you. No one would play SWTOR if it wasn't Star Wars. It's about as bad an effort as they could have made. The only people who can enjoy it are players who always wanted a console game on the computer so they could pay 15 bucks a month to watch their character in cutscenes, and people who don't like change.

    If SWTOR was based on an unknown IP it would be long gone.

    MMORPG players are often like Hobbits: They don't like Adventures
  • Tasslehoff35Tasslehoff35 Member UncommonPosts: 962
    Originally posted by Archlyte
    Originally posted by Bannuk
    Originally posted by Archlyte
    Originally posted by hikaru77
    Originally posted by Archlyte
    Originally posted by hikaru77
    Originally posted by NagilumSadow

    From 2012:

     

    "When BioWare created Star Wars: The Old Republic, the developer intended for it to be a huge blockbuster MMORPG, with millions of subscribers dutifully paying their fees for years and years. However, BioWare spent most of its money on single player story content, wrapped up in all the worst time-sink tropes that pervade the MMORPG genre. Design elements that players suffer through [...]"

    I dont get it, is that time of the day again?.  

    Thats from 2012, we are in the 2014 and SWTOR is among the most played MMOs on the market. 

     

     

    Because it has the Star Wars IP. Nobody plays that game for any other reason.

    Is your point of view.      

    Don't be in denial

    Even though you think you are important and your opinion is fact, neither is true, just like every other anonymous poster on these forums.

    Including you. No one would play SWTOR if it wasn't Star Wars. It's about as bad an effort as they could have made. The only people who can enjoy it are players who always wanted a console game on the computer so they could pay 15 bucks a month to watch their character in cutscenes, and people who don't like change.

    If SWTOR was based on an unknown IP it would be long gone.

     

    Wow is this the type of argument people put up on this site. Lol Swtor would be gone if it wasn't Star Wars?  /FACEPALM 

     

    the only ones who like Swtor are console player?  /FACEPALM 

     

    First by your hilarious thought process the following games also would be gone:

     

    Wow would be gone if it want the Warcraft IP

    Ffxiv would be gone if it was the FF IP

    Lotro would be gone if it wasn't lotr IP

    Age of Conan would be gone if it wasn't conan IP

    Mario Cart would be gone if it wasn't mario IP

    Madden would be gone if it wasnt NFL IP

    if you need more champ just ask.

     

    As for your other ridiculous comment.  Any chance you have a link, facts proofe to back up this laughable comment?  Only console players lol.  

     

    You ou know it's probdbly time for you to move on from Swtor you clearly are emotionally hurt by it and making post like you do just embarrassed yourself.   But hey I'm new here maybe that is a common occurrence but I do appreciate you creating a post that I could get a good laugh in to start my day.  

  • GardavsshadeGardavsshade Member UncommonPosts: 907
    Originally posted by CrazKanuk
    Originally posted by Gardavsshade
    Originally posted by hikaru77
    Originally posted by NagilumSadow

    From 2012:

     

    "When BioWare created Star Wars: The Old Republic, the developer intended for it to be a huge blockbuster MMORPG, with millions of subscribers dutifully paying their fees for years and years. However, BioWare spent most of its money on single player story content, wrapped up in all the worst time-sink tropes that pervade the MMORPG genre. Design elements that players suffer through [...]"

    I dont get it, is that time of the day again?.  

    Thats from 2012, we are in the 2014 and SWTOR is among the most played MMOs on the market. 

    If I remember correctly EA posts how many players Log In to the game, not how many hours each Player spends playing the game.

    In a MMO how many hours each Player spends playing the game is what really matters. I myself just update the client and log in every week or so just to see what new items are available, but other than that I don't actually play the game or spend time in it nor do I spend money on it.

    If EA is just reporting log ins... does that really mean it's actually "among the most played MMOs on the market"? No it doesn't.  It just means the log in server is busy and those numbers look good to Stock Holders who don't know much about MMOs.

     

    And what does $100+ in revenues tell us? *drop the mic* k thx bye. 

    It tells me for now SW:TOR is doing well, so calm down. I am not crying the death knell for SW:TOR. I was questioning whether it's enough to just count log ins or if better metrics should be used.

    and I don't leave these boards simply because you or anyone else tells me to kthxbye. Rude.

  • KuinnKuinn Member UncommonPosts: 2,072
    Originally posted by Sephiroso
    Originally posted by Kuinn
    World of Warcraft has decreased almost 50% from its peak years, and last I heard it's going to release new content updates more frequently than ever. Go figure.

    Last I heard World of Warcraft was a decade old game. SWTOR isn't even half that. Go figure.

    Point, which you missed is: Even if some figures go down, does not mean that there is some sort of huge disaster in our hands immediately, or at all.

  • ktanner3ktanner3 Member UncommonPosts: 4,063
    Originally posted by Soandsoso

    SwTor hate still going on....so funny.

     

    I check back in every once in awhile just to laugh at these fools who get so bent out of shape over a video game.

    Currently Playing: World of Warcraft

  • KyBoKyBo Member UncommonPosts: 140
    Originally posted by Deleted User

    http://files.shareholder.com/downloads/ERTS/3606693866x0xS712515-14-63/712515/filing.pdf

     

    For the three months ended September 30, 2014 , service and other revenue was $454 million , primarily driven by

    FIFA Ultimate Team, Titanfall, and

    Battlefield 4 Premium. Service and other revenue for the three months ended September 30, 2014 increased $109 million , or 32 percent, and was driven by a $171 million increase primarily from Titanfall and the FIFA and Plants vs Zombies franchises. This increase was partially offset by a $62 million decrease primarily from the SimCity franchise and Star Wars: The Old Republic.

     

    What is this, 3rd? quarter when they mention revenue increase was offset by decrease in SWTOR. Specifically.

    Not good.

    Ok, so to break down the investor-business PR speak, here's what's actually being stated.

    EA is comparing online gaming service revenue from Q3 2014 to Q2 2014.  There was a 32% increase in revenue ($171 million) over the last 3 months compared to the 3 months before that.  Most of that revenue came from FIFA, which is going like crazy in Europe, Titanfall, which has also been successful, and the ever-reliable Battlefield online revenue, as well as Plants versus Zombies.

    "This increase was partially offset by" actually means "we lost money on the following."  Between Sim City and SWTOR, EA took a loss of $62 million.

    The bottom line here is that SWTOR is currently costing more money than it is bringing in, and it's losing enough to be named in EA's quarterly earnings statement as being a primary driver of profit loss, along with the Sims.

    Now, there would need to be a trend of big losses that lasted for at least 6 months to a year before SWTOR was in any danger of being cancelled, and even then, the licensing agreement for the game likely requires EA to faithfully operate the game and pay royalties for a fixed number of years.  

    One thing to consider is that if a major change to the game or content expansion is being developed, that would also lead to the game, with low revenue coming in, to run heavily into the red.

    Any way you slice it, something is going to give with SWTOR.  Either resources will be spent in order to boost revenue, or major cutbacks will put the game on undeniable life support until such time that EA can legally pull the plug.  Considering the fortune that's already been spent on the game to end up where it is, I'd bet on the latter.  EA took what should have been a great gamble with the Star Wars IP and managed to lose on it.  Like any company that makes a bad business call, they're going to minimize the damage from that mistake.

     

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