forbes.com had an interesting article the other day, regarding how EA now is “stuck” with a game they can’t monetize as they want to. Here’s a summary of some of the points: Battlefront got backlash for having a $50 season pass and launching with barebones content. In Star Wars Battlefront 2 they changed the system and promised free DLC while using microtransactions and loot-boxes to monetize the game. Thanks to the backlash, they have removed microtransactions . . . but they’ve stated that they’re planning on reinstating them. If they do bring back microtransactions tied to progression then they will still face backlash. If they bring back lootboxes with only cosmetic items they’ll still draw ire. They’ve already enticed responses from multiple governments on the issues of lootboxes. That leaves them with really only one path forwards that won’t bring back a ton of backlash: Implementing an online store with microtransactions…
business model
SWTOR Follow Up Analysis from EA’s FY16 Report
EA’s Annual Report in the form of its Form 10-K filed with the SEC this week talks a bit about SWTOR. Where does it stand now? Is it gaining more attention? swtoreconomics had some opinions to share on the matter and we think you’ll find it interesting too: “Star Wars: The Old Republic has received a lot of attention for its episodic story content cycle that began in October 2015 with the release of Knights of the Fallen Empire and opinions vary widely. There is little doubt that the financial success or failure of this content cycle will be the largest factor in determining the future path of the game. There is one paragraph that provides essentially all of the information in the entire 97 page report regarding Star Wars: The Old Republic specifically: For fiscal year 2016, service and other revenue was $1,899 million, primarily driven by FIFA Ultimate Team and Star Wars: The Old Republic. Service and other revenue for fiscal year 2016…
Battlefront a “Unique” Beast of a Game Set to Sell 9-10 Million Copies
The upcoming Star Wars: Battlefront is one of the most hotly anticipated games of the last few years, and while the developer has apparently spared no resources in its creation, EA are expecting to cash in big time come November 17, when Battlefront is scheduled to be launched on PC, PlayStation 4 and Xbox One. According to CFO Blake Jorgensen, the sales estimate on the title is some 9-10 million copies, in EA’s 2016 fiscal year alone (which wraps up in March 2016). Obviously, the long-term potential for the title is much greater. Jorgensen also sought to allay potential fears tied to the actual launch of the product, fears which have been somewhat justified since the problem-ridden, botched launch of Battlefield 4. According to Jorgensen, EA have learned their lessons then, and there aren’t any such unpleasant surprises to be expected with Battlefront. In other Battlefront news: DICE have made…
Pachter: “Subscription MMOs have peaked. If Star Wars couldn’t do it, no-one can do it.”
Industry analyst Michael Pachter says that MMOs have peaked. He says that if Star Wars couldn’t make it happen, no one can. It’s an interesting theory from one of the biggest experts in the field but is it true? PC Games explains more: “”I thought Star Wars: The Old Republic would make it big, but it didn’t. It looks like subscription MMOs are as big as they’re going to get – there are only 6-7 million people willing to spend $15 a month. If Star Wars couldn’t do it, made by Bioware, then no one can do it.”” He continues to explain the reasons he believes EA’s stock is dropping. Supposedly, he candidly tells John Riccitiello why no one is buying their stock. I told him: ‘the reason your stock is in the toilet is because you’re in the fifth year of a three year turn around’ says Pachter. He…