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EA too big to fall? Doesn't seem that way anymore.


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#1
LegendaryBlade

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EA is too big to fall and all the controvery lately has done nothing to dent their reputations or...wait

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In all seriousness I wanted to make this thread to give everyone an idea of what's happening with Electronic Arts business wise. Pre-TOR EA stocks sat at around $25 dollars, while the most recent stocks are at less than $16. This isn't just a bad dip, if you look at their lifetime trend

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This is the lowest their stock has been since the pre-2000s. It gets worse however, as EA's stock has been falling at a near unbelievable 1% a day, if this continues after the release of Dragonage III we could very believably see their stock fall below $10.

What does this mean? It means EA is feeling the heat from Bioware fans, having a sharp decline AFTER the release of AAA title isn't a good sign, let alone having the lowest stock they've seen in 10+ years.

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The upset from the Mass Effect 3 ending and winning the Golden Poo from Consumerist (being voted Worst Company in America 2012) has put EA in potentially the worst position they could be in. So next time you say "All the drama means nothing, SWTOR, DA2, and ME3 are selling bazillions" keep their stock in mind. If you're hoping for a change in EA's practices now is the time to vote for your wallet. Their bottom line is hurting, and now is your chance to show them it's the consumers that decide a company's success.

TL;DR

Modifié par LegendaryBlade, 10 avril 2012 - 11:10 .


#2
eroeru

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As foreseen by many who do understand.

#3
CrazyRah

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No company is too big to fall, some just take their sweet time before they collapse

#4
LPPrince

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When You're EA

#5
HiroVoid

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Seems like TOR was their biggest hit. Too much money invested and not enough sales or subscribers.

#6
LegendaryBlade

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HiroVoid wrote...

Seems like TOR was their biggest hit. Too much money invested and not enough sales or subscribers.


It was, Tortanic hit EA pretty hard. Much like their few subscribers, however, I think they plan on maintaining the face that it was somehow a massive success.

#7
HiroVoid

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I would imagine it COULD turn a profit, but they and the investors seem to have expected immediate profit. It would probably take retaining their current subscribers years to make up the cost of development and advertising I would assume. Plus, the costs for updates, new content, and everything else involved.

#8
Brockololly

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LegendaryBlade wrote...
This is the lowest their stock has been since the early 2000s. It gets worse however, as EA's stock has been falling at a near unbelievable 1% a day, if this continues after the release of Dragonage III we could very believably see their stock fall below $10.


Its been tanking of late because the entire market has been tanking. You're delusional if you think this recent dive has anything to do with ME3 or that it will continue going down at 1% a day.

If EA keeps dropping at 1% a day, the market in general is likely in deep **** and you'd be worrying about more than EA stock.

LegendaryBlade wrote...
What does this mean? It means EA is feeling the heat from Bioware fans, having a sharp decline AFTER the release of AAA title isn't a good sign, let alone having the lowest stock they've seen in 10+ years.


Oh please.

EA is so much larger than just BioWare. Their recent stock tumble could have something to do with BioWare in as far as how TOR is doing, but by most accounts TOR is doing ok. We'll likely know more when they announce their fiscal Q4 results in early May.

Again, this recent dive has little to nothing to do with ME3, which by most accounts has sold decently. Not Call of Duty blockbuster numbers but decent. Only BioWare/EA knows if its met their internal expectations.

LegendaryBlade wrote...
The upset from the Mass Effect 3 ending and winning the Golden Poo from Consumerist (being voted Worst Company in America 2012) has put EA in potentially the worst position they could be in. So next time you say "All the drama means nothing, SWTOR, DA2, and ME3 are selling bazillions" keep their stock in mind. If you're hoping for a change in EA's practices now is the time to vote for your wallet. Their bottom line is hurting, and now is your chance to show them it's the consumers that decide a company's success


Again, while BioWare is important to the overall health of EA, they're likely not their big money maker. Fact of the matter is that no BioWare game has ever sold that well when compared to their competitors. EA's big sellers are the  Maddens and Battlefields in their lineup and all the other non BioWare games they publish/develop. TOR is important no doubt and it will be interesting to see if they're maintaining subs there.

But sure, if you don't like BioWare's recent products, don't buy them. That is the only way you'll meaningfully send them a message- not  cupcakes or billboards. Of course, since BioWare is just a part of EA, if BioWare titles don't sell well long term due to any lasting effects from recent events and recent titles, then there might not be BioWare much longer, or, at least BioWare as we know it, but thats already true to some extent with their direction in recent games, IMO.

#9
wolfsite

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Honestly the MMO market is just too diluted right now, especially with games that are free to play.  Why spend money on a subscription when you can just jump from game to game with no risk or loss of money until you find one you like.

#10
Sajji

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Very interesting. How are Bethesda stocks looking?

#11
LegendaryBlade

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Sajji wrote...

Very interesting. How are Bethesda stocks looking?


As far as I know Bethesda isn't publically traded and doesn't have a ticker symbol for me to look up.

#12
RedArmyShogun

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If the stocks are falling it has less to do with ME:3 and more to do with that "Worst Company in America award", and then the ****** poor antagonistic response from EA's PR.

#13
chunkyman

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The economy in general is crap right now, the low stock price isn't entirely the result of sub-par games and negative publicity.

Modifié par chunkyman, 11 avril 2012 - 02:53 .


#14
SOLID_EVEREST

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I'd feel bad for the people losing their jobs, but EA was hardly a company that I ever looked to for gaming. If the publishers all fall, though, I couldn't care less. We still have Kickstarter and the indie market.

#15
Kaiser Arian XVII

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chunkyman wrote...

The economy in general is crap right now, the low stock price isn't entirely the result of sub-par games and negative publicity.



This, and it will get worsened.

#16
TheBlackBaron

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chunkyman wrote...

The economy in general is crap right now, the low stock price isn't entirely the result of sub-par games and negative publicity.


This.

Hard to devote a ton of money to gaming when just filling up your gas tank costs 20% more than a new AAA title. 

#17
Arppis

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LPPrince wrote...

When You're EA


...you can't stop?

#18
Lotion Soronarr

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Stock Market...the worst idea humanity ever had.

Mark my worlds - when the world economy collapses, it will be because of the financial systems became too inter-connected and the stock market. Isn't it ironic that the world is more vulnerable now than it was in the dark ages?

#19
Han Shot First

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Good!

At this point I hope the Good Ship EA sinks to the bottom of the sea, and drags Bioware to the bottom with it.

#20
Dexter111

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http://www.dailyfina...low-will-ea-go/

Certainly won't help when renowned financial sites write about them with the headline "How Low Will EA Go?"

It's all well deserved though. Waiting for the first staff cuts.

Modifié par Dexter111, 11 avril 2012 - 09:52 .


#21
Monica83

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ouch :D

#22
RedArmyShogun

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Lotion Soronnar wrote...

Stock Market...the worst idea humanity ever had.

Mark my worlds - when the world economy collapses, it will be because of the financial systems became too inter-connected and the stock market. Isn't it ironic that the world is more vulnerable now than it was in the dark ages?



That is actully true, on a neat side note, the typical citizen of Imperial China and Rome during there high points were actully richer than the people of today. In fact whenever a company becomes publicly trader is often when it starts its as I call it "crap spin" And many world currencies have fallen steedily from public trading, praticularly the US dollar being tied to oil now and not the cold standard.

Its why I lol at all the " I want to be a machine!" people. Eventually it'll be

"I want something to eat and clothes that arn't animal skins, some good shoes so I can outrun the go kart riding savages coming to skin me alive."


Most experts point toward a dark ages given governmental control, the dulling of the people, and death kneels in none service industries, plus general greed. Rather than a new golden age. Its part of why space colonization hasn't happend. Humanity has stagnated.

Modifié par Confess-A-Bear, 11 avril 2012 - 01:10 .


#23
LegendaryBlade

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Dexter111 wrote...

http://www.dailyfina...low-will-ea-go/

Certainly won't help when renowned financial sites write about them with the headline "How Low Will EA Go?"

It's all well deserved though. Waiting for the first staff cuts.


Nice article, thankyou

#24
eroeru

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TheBlackBaron wrote...

chunkyman wrote...

The economy in general is crap right now, the low stock price isn't entirely the result of sub-par games and negative publicity.


This.

Hard to devote a ton of money to gaming when just filling up your gas tank costs 20% more than a new AAA title. 


That argument just doesn't hold in light of the current kickstarter projects. People pay lots for entertainment - even moreso in hard times.

#25
DRUNK_CANADIAN

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Although after TOR and after the ME3 backlash, investors may get cold boots, since ME3 was supposed to be the money cruise, but they have made poor decision after poor decision as a company, not just with regards to development so the decline isn't huge. But I will point out that if you look at the timeline you have the US's atrocious economy, which is in part to the current US government doing more or less nothing but waging a shadow war on pointless issues where the real issue of the economy is honestly the only issue that matters to the survival of the American way of life. That being said, the economy doesn't exist in a bubble, but they certainly haven't been using money wisely nor stimulating growth with their policies, do we blame Obama, partly. Do we blame the people as a whole for in the past two decades or so building up to this crash, yes. To be honest its almost at the point now where the North American economy is in such bad condition that a feasible solution is becoming something of dreams not reality.