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EA not looking good financially, Bioware been a disappointment?


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#1
deuce985

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www.cinemablend.com/games/EA-Laying-Off-Up-1-000-Employees-Due-Over-Spending-Marketing-41450.html

Basically what this is saying is EA has terrible management. They're over-spending(especially on marketing) and their sales expecations for games is unrealistic. Mainly on Battlefield 3, SWTOR and ME3. Technically, none of those games are selling bad at all. It's their budget management that sucks. So it's not that Bioware or DICE are at fault, it's on EA. But does that mean they'll start applying more pressure on Bioware to create revenue streams for them?

Seems like the layoffs will hit the marketing for EA.

I haven't looked at their revenue, operating income, etc. lately but it can't be good with layoffs coming. Their stock isn't looking good either.

Looks like they need a restructure on their image. Usually great marketing can cram games down a bunch of consumer throats...looks like they really are fighting them with their wallets. Bad economy certainly isn't helping either.

Now if only everyone would do this to Activision and the 400+ shooters that come out on the market every year....maybe we'd see more variety in gaming instead of so many games feeling similar these days...

Modifié par deuce985, 18 avril 2012 - 06:27 .


#2
Chromie

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Instead of spending so much ****ing money on marketing they could have used it for giving the ME3 devs more time to work on the game, not screw up Old Republic's endgame and not rush DA2.

Word of mouth is the best ad there is just ask Notch.

#3
deuce985

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Skelter192 wrote...

Instead of spending so much ****ing money on marketing they could have used it for giving the ME3 devs more time to work on the game, not screw up Old Republic's endgame and not rush DA2.

Word of mouth is the best ad there is just ask Notch.


I don't think they're going to do much to the devs...it's not technically their fault. It seems to be a major management problem with EA right now.

Things like forcing Origin down everyone's throat isn't smart either.

I'll give you a example on that...I have BF3 on PC and I can run it on ultra. For the longest time I couldn't figure out why I was getting these random 3-4 second freezes after about 15 minutes of play. My rig was just fine. Turns out...it was Origin. I had to start closing Origin when I played BF3. Never got a freeze again. It was sending some kind of crap data.

That would never happen on Steam and if given the option...I would've bought it on Steam...

It's smart to create your own DD service to get the full $60 sale...but jesus, at least make it manageable.

#4
Kaiser Arian XVII

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#5
Aerevane

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deuce985 wrote...

Skelter192 wrote...

Instead of spending so much ****ing money on marketing they could have used it for giving the ME3 devs more time to work on the game, not screw up Old Republic's endgame and not rush DA2.

Word of mouth is the best ad there is just ask Notch.


I don't think they're going to do much to the devs...it's not technically their fault. It seems to be a major management problem with EA right now.

Things like forcing Origin down everyone's throat isn't smart either.




I'll give you a example on that...I have BF3 on PC and I can run it on ultra. For the longest time I couldn't figure out why I was getting these random 3-4 second freezes after about 15 minutes of play. My rig was just fine. Turns out...it was Origin. I had to start closing Origin when I played BF3. Never got a freeze again. It was sending some kind of crap data.

You may feel that way. I dare say the average consumer doesn't give a jack crap about what they have install on their pc's. What is and will be the core element is not just selling to the 'hardcore gamers' - but appealing to a broader audiance. WoW succeeded greatly in this; Halo succeeded and so on. Why did those games succeed? Perhaps EA is fishing for too large a market - or it may simply be too soon; the whole early adaptors vs late adaptors (as if WoW had it's playerbase so large so quickly) - yet EA seems to excell in some kind of shock and awe tactics. 

Origin is crap - no doubt; but I have serious doubts as to whether or not this influences the decision of average consumers to buy a game (or not)

That would never happen on Steam and if given the option...I would've bought it on Steam...

It's smart to create your own DD service to get the full $60 sale...but jesus, at least make it manageable.

Origin feels like a beta product and it is. Again; EA is far too much into shock and awe and producing games at great paces. They try to run a creative proces in a very fordist way. They err there.

#6
JasonDaPsycho

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I can't help but feel EA could sometimes be very very short-sighted. They're trying to do too much with too little.

#7
Kronner

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They can't seriously expect to make the same **** all over again and get away with it. It finally caught up with them.

#8
MingWolf

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deuce985 wrote...
Looks like they need a restructure on their image. Usually great marketing can cram games down a bunch of consumer throats...looks like they really are fighting them with their wallets. Bad economy certainly isn't helping either.


They definitely need to restructure their image. 

The primary problem with EA is that they put their business goals ahead of their customers and ahead of their games.  It may work in some industries, but not the gaming industry, where customers do expect something a little more in return for their money.  Some of their marketing tactics work, at least in the short run, for a little bit of extra cash (i.e., DLCs), but they've been a little bit myopic towards their customers, which really shouldn't be happening if they were smart in their business. 

#9
deuce985

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JasonDaPsycho wrote...

I can't help but feel EA could sometimes be very very short-sighted. They're trying to do too much with too little.


You will be surprised at how many people skipped buying BF3 just because it wasn't on Steam...

And when things come out like I mentioned, now you see why...

I remember Steam being a pile of dog poop when it first came out too. It did actually hurt Valve. Now look at Valve...they're praised by everyone and they're reaping the rewards. EA can still clean their image up, they just need to willing to do it.

*edit*

Oops, meant to reply to the post above that lol

Modifié par deuce985, 18 avril 2012 - 10:24 .


#10
eroeru

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I laughed at this:

"The best I could do is derail threads into GW2 sucks and other random nonsense. That was actually surprisingly effective and entertaining."

(about defending TOR - from the linked article where the ex-EA troll-employee explains his working methods)

Modifié par eroeru, 18 avril 2012 - 11:13 .


#11
eroeru

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Also, we could make a thread where everyone defending DA2, TOR and ME3 can swear they're not a troll. Would make some misunderstandings a bit more clear (you can then ascribe a higher possibility of a lie to those who didn't swear their innocence!)

(just kidding)

Modifié par eroeru, 18 avril 2012 - 11:07 .


#12
naughty99

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Skelter192 wrote...

Instead of spending so much ****ing money on marketing they could have used it for ....


It is an expensive proposition to bring any consumer entertainment product to market in US retail channels, let alone a high profile AAA game.

There are PR strategies that can help to raise awareness along the way, but at the end of the day if you want to compete with games like COD, you are going to spend tens of millions of dollars in the US alone on TV spots, print, outdoor, web, POS displays, trade ads, circulars, rebates, bundling, etc., and then you need to spend more in foreign markets, perhaps as much as what you spent in the US. 

This is simply what it costs and at this point, there's not really a way to get around it. If you are bringing your game to the retail channels, you will already know if it is a hit or a dog soon after the release date, so the focus is always going to be on the launch.

Digital distribution platforms may result in the success of new models for certain games, but for a AAA release going to retail channels it's not likely to change.

Modifié par naughty99, 18 avril 2012 - 11:40 .


#13
Rockworm503

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 EA buys these companies so they'll have scapegoats and they can keep smoking their 100 dollar bills and all the hate os on Bioware.
Doesn't work EA we know its you!

#14
jackofalltrades456

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I'm glad everything is beginning to crash down on them. EA has been digging it's own grave for years now with it's horrible management and business practices.

One of the main problems with EA is that they only focus on the short term profit rather than long. They want everything released now, not in a few years.

Developers are forced to rush through their games and release them sub-par, then try to make up for it by spending millions marketing it to the consumers. It doesn't matter if the devs are overworked and the game is unfinished, the only thing that matters is releasing the game during spring or the holiday season.

They'll buy out popular video game companies and try to use them to both decrease their competition and increase their image, only to run the companies to the ground due to incompetence. EA's size and power is not due to making quality video games, but by simply buying others out and release as many titles as possible before run them to the ground. I'm not even surprised for a second that this practice is beginning to set the company ablaze.

So EA can either...

1: Continue to prove Einstein's theory on insanity by rushing their games, buying, then destroying smaller companies, or treating both their costumers and employees like crap.

Or

2: Try to improve their company's image by respecting both the costumers and developers and focus on the quality of the video game rather than how much they can profit off it.

I'm going to vote on the former.....

Modifié par jackofalltrades456, 19 avril 2012 - 01:23 .


#15
CARL_DF90

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eroeru wrote...

I laughed at this:

"The best I could do is derail threads into GW2 sucks and other random nonsense. That was actually surprisingly effective and entertaining."

(about defending TOR - from the linked article where the ex-EA troll-employee explains his working methods)



Good article there. It helps to affirm what I have been suspecting for a few months now. There are numerous people on these and other forums who troll with the most inept logic and stupity that either A.) the intelligence level of people these days is going WAAAY down, or B.) what that article said. Oy. Make my heads hurt just thinking about it.

#16
deuce985

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I just don't like Bioware sitting under EA's umbrella. They're trying to push Bioware into the mainstream when they have plenty of market in the hardcore crowd.

Look at how well Skyrim does commercially...that's not really a game for mainstream. I'd say it's fairly hardcore. How can EA expect Bioware to ever hit 5-10 million copies sold on their games for the style they do? It's just not going to happen. Be happy and lower your projections to a few million sold. That's where my fears are. They're going to continue to try and push them away from their CRPG core and more towards shooters. I mean, Bioware is even doing CNC franchise now...like they don't even want them doing RPGs.

I'd hate to see them start dismantling Bioware just because they're not reaching their corporate expectations. In this case, it doesn't seem like it will hurt the devs, more on their marketing division. But still...if it continues they're going to have to slice some fat off somewhere...

I gasped when I first saw them buy Bioware and I gasp now. Based on the rumors from former Bioware employees...our concerns about them crunching Bioware with ridiculous deadlines is true. At least that's how the rumors go.

EA needs to do a serious overhaul on their image. They attempted to do it a few years ago and it actually started to show. They had better quality games at one point but then they just faded back to the corporate image that doesn't care about consumers.

Modifié par deuce985, 19 avril 2012 - 04:38 .


#17
CARL_DF90

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The day that EA pulls its head out of the sand and realize that is the day I win the lottery.

#18
addiction21

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CARL_DF90 wrote...

eroeru wrote...

I laughed at this:

"The best I could do is derail threads into GW2 sucks and other random nonsense. That was actually surprisingly effective and entertaining."

(about defending TOR - from the linked article where the ex-EA troll-employee explains his working methods)



Good article there. It helps to affirm what I have been suspecting for a few months now. There are numerous people on these and other forums who troll with the most inept logic and stupity that either A.) the intelligence level of people these days is going WAAAY down, or B.) what that article said. Oy. Make my heads hurt just thinking about it.


You are right. It affrims your confirmation bias. This aninymous poster with no evidience is trolling for EA and it just lost its job.
Yes I do believe this sort of thing goes on but no I will not trust some nobody just because they are saying what I want to hear.

It is amusing how these "confessions of former employes" come out during some drama.

#19
UnstableMongoose

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I don't believe EA is in serious financial trouble. Significant numbers of people being shuffled out of jobs at the end of projects and having more workers shuffled in is pretty common in the video game industry. EA's public stance on the layoffs and stuff has been the statement that people should "look at their balance sheet at the end of the year."

Considering the cyclical nature of video game finances, as well as the fact that ME3 is the dominant game across the entire video game market right now, I think that EA is probably in just as good a situation as their PR people are saying. I don't see markers of significant financial trouble other than posts on these forums with dubious sources.

#20
CARL_DF90

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@ addiction21

First, interesting handle you have there. :P

Second, confirmation bias? Nothing like that at all. I just meant that it helped to put some pieces into place and some trends and goings on that didn't make much sense from a logically point of view. When I first thought of what that article was talking about I thought to myself, "nah, I'm just paranoid", but after that article I found myself questioning whether or not it was me being paranoid or me catching onto seeing some patterns around here.

Also, yes this stuff does tend to come out during drama, and if there were going to be no negative consequences from coming out and telling these stories than perhaps this "anonymous" guy would happily be more open about who he was to help add credence to what he was saying. Unfortunately, if he did that he probably would not find employment again, so being anonymous is the only thing he can do. True, it verifies nothing but I am keeping my mind open to the possiblites and not keeping blinders on.

Modifié par CARL_DF90, 19 avril 2012 - 06:55 .


#21
horacethegrey

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I thought the marketing of ME3 was okay. 

Then came the Space Edition. :mellow:

Who in their right minds thought this was a good idea? If anything, it backfired spectacurlarly on them. Since it allowed people to play with the game early and witness that godawful ending.

And no disrespect meant to Mr. Buzz Aldrin, but what does he have to do with Mass Effect?

#22
Fortack

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naughty99 wrote...

It is an expensive proposition to bring any consumer entertainment product to market in US retail channels, let alone a high profile AAA game.


BS. If you make something that sells, retailers will stand in line.

There are PR strategies that can help to raise awareness along the way, but at the end of the day if you want to compete with games like COD, you are going to spend tens of millions of dollars in the US alone on TV spots, print, outdoor, web, POS displays, trade ads, circulars, rebates, bundling, etc., and then you need to spend more in foreign markets, perhaps as much as what you spent in the US. 


How the heck are you going to compete (and make a profit) with anything when the money invested in marketing nonsense runs in the millions?

This is simply what it costs and at this point, there's not really a way to get around it. If you are bringing your game to the retail channels, you will already know if it is a hit or a dog soon after the release date, so the focus is always going to be on the launch.


No, that's what the marketeer morons want you to believe.

Can you explain why the most successful company of the last decade doesn't spend anything on marketing?

*cough* Apple *cough*

Just saying

#23
stonbw1

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Here's my question: what are the demographics on video game buyers? Are they mostly the well-informed gamers like on the BSN that hold companies to high gaming standards and could easily demand better product through not spending money on crap games? OR Are they the ignorant parents that buy video games for their children and haven't the foggiest clue what they are buying and therefore, glitzy marketting budgets with half-arsed games would be fine?

#24
LTD

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Yo EA,I could fly around globe explaining how button and awesome are connected for 75% of pay the original dude gets. That'd be a 25% save right there and then! Besides, the opriginal Button/Connection guy is destined for another life; he'd be PERFECT in Ancient Aliens.

"Aliens...
*gestures with hands*
...Pyramids. Connected now. "
I can just hear it!

Modifié par LTD, 19 avril 2012 - 03:10 .


#25
deuce985

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stonbw1 wrote...

Here's my question: what are the demographics on video game buyers? Are they mostly the well-informed gamers like on the BSN that hold companies to high gaming standards and could easily demand better product through not spending money on crap games? OR Are they the ignorant parents that buy video games for their children and haven't the foggiest clue what they are buying and therefore, glitzy marketting budgets with half-arsed games would be fine?


Both.

Depends on the game too, I'd imagine. ME3 probably has way more informed buyers because it's aimed at that kind of market.