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.
After almost 3 years is amazing how some people are still waiting for the ¨doom¨ that never came. SWTOR is doing great, dont worry about that, is you care that much about EA financial and how it will lead to the long awaited Doom of SWTOR, just wait till the next Quarter Report.
Rummaging through the report, it seems to indicate SW:TOR is making less than last year. A net loss? It doesn't seem so to me. However, it's revenue decreased at a pace only outdone by primarily singleplayer games released around that time last year (Dead Space, Crysis).
Probably explains the push for a new expansion to boost revenue.
Because it has the Star Wars IP. Nobody plays that game for any other reason.
The Title has been released for Episode VII
You're not making the point, but reminded me of this; I have to laugh anytime someone says "The new Star Wars movies are going to bring in so many new players to SWTOR." Did the new Hobbit movies drive a ton of new players into Lord of the Rings Online? No. Both are F2P titles, and at least the Hobbit is somewhat close to the timeframe of the game. You're never going to see older Luke and Han Solo in SWTOR.
Because it has the Star Wars IP. Nobody plays that game for any other reason.
The Title has been released for Episode VII
You're not making the point, but reminded me of this; I have to laugh anytime someone says "The new Star Wars movies are going to bring in so many new players to SWTOR." Did the new Hobbit movies drive a ton of new players into Lord of the Rings Online? No. Both are F2P titles, and at least the Hobbit is somewhat close to the timeframe of the game. You're never going to see older Luke and Han Solo in SWTOR.
I was hoping that new push from Disney would encourage EA to pour some money into SWTOR again, but its pretty obvious that only push EA will do is marketing push unfortunately.
I bought Revan expansion, more as a courtesy to KOTOR 1/2 than anything else to finally see what they chose as a closure. Unless they chose to resurrect him....again. BUT unification of IMP/REP story is major nonsense/letdown, i got a lot of spontaneous comments while playing forged alliance flahhpoints (through GF mind you) that forged alliance story is utter nonsense (to put it mildly)
That $60 million number is ironic when you look Star Citizen hitting that same amount in pledges.
Chris Roberts is making what is essentially a Han Solo simulator and people are throwing money at him.
Meanwhile Bioware created a space expansion that's PVP arena only--no PVE at all, no trading, just static, instanced arenas--and it looks like they've decided to stop supporting it completely. Instead the next expansion is just another couple planets of the same formula that nearly sunk the game in the first place.
I'm not not a SWTOR hater, I still play the game almost every night but seeing another developer stealing what should have been their game right out from under their noses just irks the crap out of me.
That $60 million number is ironic when you look Star Citizen hitting that same amount in pledges.
Chris Roberts is making what is essentially a Han Solo simulator and people are throwing money at him.
Meanwhile Bioware created a space expansion that's PVP arena only--no PVE at all, no trading, just static, instanced arenas--and it looks like they've decided to stop supporting it completely. Instead the next expansion is just another couple planets of the same formula that nearly sunk the game in the first place.
I'm not not a SWTOR hater, I still play the game almost every night but seeing another developer stealing what should have been their game right out from under their noses just irks the crap out of me.
Please please please take my advice: DO NOT make a claim like that about a game that hasn't launched, yet. Particularly for one as far off from launching as Star Citizen.
I too want to believe that the game will be all that and a bag of orgasm inducing potato chips, but it's just a fact of life that the further into development a game goes, the less and less it resembles that virtual life simulator we were shown in early alpha.
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.
You have sort of messed up your numbers.
For the three months ended September 30, 2014 , service and other revenue was $454 million.
This was an increase of 32% over the three months ended September 30, 2013.
The changes were:
$171 million increase primarily from Titanfall and the FIFA and Plants vs Zombies franchises.
$62 million decrease primarily from the SimCity franchise and Star Wars: The Old Republic.
This does not mean that Titanfall and the FIFA and Plants vs Zombies did not make any money last year (they did), only that they made MORE than last year.
This does not mean that SimCity franchise and Star Wars: The Old Republic lost money this year, only that they made LESS than last year.
Comments
After almost 3 years is amazing how some people are still waiting for the ¨doom¨ that never came. SWTOR is doing great, dont worry about that, is you care that much about EA financial and how it will lead to the long awaited Doom of SWTOR, just wait till the next Quarter Report.
Rummaging through the report, it seems to indicate SW:TOR is making less than last year. A net loss? It doesn't seem so to me. However, it's revenue decreased at a pace only outdone by primarily singleplayer games released around that time last year (Dead Space, Crysis).
Probably explains the push for a new expansion to boost revenue.
Excellent point and very true.
http://wyrdblogging.blogspot.com/
You're not making the point, but reminded me of this; I have to laugh anytime someone says "The new Star Wars movies are going to bring in so many new players to SWTOR." Did the new Hobbit movies drive a ton of new players into Lord of the Rings Online? No. Both are F2P titles, and at least the Hobbit is somewhat close to the timeframe of the game. You're never going to see older Luke and Han Solo in SWTOR.
I was hoping that new push from Disney would encourage EA to pour some money into SWTOR again, but its pretty obvious that only push EA will do is marketing push unfortunately.
I bought Revan expansion, more as a courtesy to KOTOR 1/2 than anything else to finally see what they chose as a closure. Unless they chose to resurrect him....again. BUT unification of IMP/REP story is major nonsense/letdown, i got a lot of spontaneous comments while playing forged alliance flahhpoints (through GF mind you) that forged alliance story is utter nonsense (to put it mildly)
That $60 million number is ironic when you look Star Citizen hitting that same amount in pledges.
Chris Roberts is making what is essentially a Han Solo simulator and people are throwing money at him.
Meanwhile Bioware created a space expansion that's PVP arena only--no PVE at all, no trading, just static, instanced arenas--and it looks like they've decided to stop supporting it completely. Instead the next expansion is just another couple planets of the same formula that nearly sunk the game in the first place.
I'm not not a SWTOR hater, I still play the game almost every night but seeing another developer stealing what should have been their game right out from under their noses just irks the crap out of me.
My youtube MMO gaming channel
Please please please take my advice: DO NOT make a claim like that about a game that hasn't launched, yet. Particularly for one as far off from launching as Star Citizen.
I too want to believe that the game will be all that and a bag of orgasm inducing potato chips, but it's just a fact of life that the further into development a game goes, the less and less it resembles that virtual life simulator we were shown in early alpha.
You have sort of messed up your numbers.
For the three months ended September 30, 2014 , service and other revenue was $454 million.
This was an increase of 32% over the three months ended September 30, 2013.
The changes were:
$171 million increase primarily from Titanfall and the FIFA and Plants vs Zombies franchises.
$62 million decrease primarily from the SimCity franchise and Star Wars: The Old Republic.
This does not mean that Titanfall and the FIFA and Plants vs Zombies did not make any money last year (they did), only that they made MORE than last year.
This does not mean that SimCity franchise and Star Wars: The Old Republic lost money this year, only that they made LESS than last year.
^^^^
Yet another good summary (slight correction - Titanfall didn't actually make any money last year as it hadn't been released).