EA losing money

[+HammR25]

Article on EA 3rd quarter loss of $641 million

It couldn't happen to a better company. Maybe they'll decide they can't afford exclusive sports licenses anymore.

[+HatNJ]

My thought exactly Be nice to see NFL games from others again My favorite still is ESPN NFL 2K5 Following year EA Buys up the exclusive havent bought a Madden game since 03 I aint buying every year of every Sports title Guess othersd are doing same if EA is crying poor

[atarian63]

Article on EA 3rd quarter loss of $641 million

It couldn't happen to a better company. Maybe they'll decide they can't afford exclusive sports licenses anymore.

Ditto on that!

[DaytonaUSA]

No offense guys, but they started losing money only when they started creating interesting IPs. If anything, it's kinda sick that we reward them financially for Madden every year for the same game, but when they release Mirror's Edge and Dark Space we spit on them.

 

I hope they DO get money on their new IPs. Them losing money right now is only teaching them to go back to the old days of milking spots franchises.

[+selgus]

No offense guys, but they started losing money only when they started creating interesting IPs. If anything, it's kinda sick that we reward them financially for Madden every year for the same game, but when they release Mirror's Edge and Dark Space we spit on them.

Sigh... I really despise these types of global statements. First off, Madden is not the same game year-over-year, and it really seems the people whom make these statements have never played the game. It's just easy to EA bash, and because they are so big, people feel justified.

 

I find it interesting that there are never any facts to back this up, just the same global statements. It is a game of American football, it's not going to radically change on many levels, because the game of football doesn't change radically year-over-year. Though to say it is the same game every year is simply not fair.

--Selgus

[DaytonaUSA]

No offense guys, but they started losing money only when they started creating interesting IPs. If anything, it's kinda sick that we reward them financially for Madden every year for the same game, but when they release Mirror's Edge and Dark Space we spit on them.

Sigh... I really despise these types of global statements. First off, Madden is not the same game year-over-year, and it really seems the people whom make these statements have never played the game. It's just easy to EA bash, and because they are so big, people feel justified.

 

I find it interesting that there are never any facts to back this up, just the same global statements. It is a game of American football, it's not going to radically change on many levels, because the game of football doesn't change radically year-over-year. Though to say it is the same game every year is simply not fair.

--Selgus

 

Wow and here I was defending EA....

 

I'm sorry, but while the game does change slightly from year to year, it only has a radical difference every 3-4 years or so. If I showed you Madden 06 and Madden 07 in gameplay, you wouldn't say "oh yea, this is 07 for sure!". There's just not that big a difference.

 

And again, I was DEFENDING EA. If you're going to bash people, try reading the comments above who said their sales were dipping because of sports titles. That's not true. EA lost most of it's money because it went out on a limb and made something original.

 

Before you jump down my throat, read my statement in completion. You may find that I'm not talking about of my ars here.

[+selgus]

I'm sorry, but while the game does change slightly from year to year, it only has a radical difference every 3-4 years or so. If I showed you Madden 06 and Madden 07 in gameplay, you wouldn't say "oh yea, this is 07 for sure!". There's just not that big a difference.

This is my point, Madden does change year-over-year, so your statement that we "reward them financially for Madden every year for the same game" is only true if you mean that they make a football game every year. They produce it every 9 months, and yes, they don't always start from scratch. This does not mean it is the same game. Gameplay does change in each version, addition controls added, new and improved graphics engines, faster action, additional online modes, etc.

 

I have read statements like yours before and people just accept them as truth. If you want to say you feel Madden doesn't change enough for you each year, that is more subjective.

Before you jump down my throat, read my statement in completion. You may find that I'm not talking about of my ars here.

I wasn't jumping down your throat, I focused on this one statement and am sorry if you took that as an attack. I did read all that you wrote and do agree that EA got ding'ed for trying something outside what people expected.

--Selgus

[BydoEmpire]

First of all, Madden is a huge cash cow for EA. As DayonaUSA said, they lost money because of OTHER games. Their sports franchises are golden and pretty much all make a ton of money. The video game industry is not recession-proof, and this is more evidence.

 

Second, you have to look at Madden as a sports product as much as a video game. It's cheaper than an NFL-licensed jersey, and you can get a lot more use out of it! There's a pretty big community of Madden fans out there who play against each other, and they want to be part of it each year - it's like fantasy football. A lot of football fans want to play a new game every year, but even if you as a gamer-more-than-football-fan and buy Madden every 2-3 years that's still a huge audience. Finally, how much can any company put into a game with a 12 month dev cycle. You really expect them to take a year off and forgo those 5+ million sales? They put in as much as they can - some years it works out better, some years not as much. At least the games are consistently high quality, even if some years' features aren't all that.

 

I don't want to see EA or any other company lose money. That mean layoffs, and ultimately it means less "risky" investments like new IP.

[DaytonaUSA]

I don't want to see EA or any other company lose money. That mean layoffs, and ultimately it means less "risky" investments like new IP.

 

Agreed. I find it appauling that people are poking fun at EA for losing money. This isn't a game, it's people's lives. I'm sorry, but even the most hated of companies out there I woudln't "wish" for them to do badly. You can't just go and find a new job these days, especially in the video game market. A couple bone heads might head EA.. as do most companies, but it's the hundreds if not thousands of people who work for them that define who the company really is.

 

While Dead Space wasn't my thing, I liked what I played of Mirror's Edge (after a while, kinda got a bit hard for me) and I'd like to see more from EA outside the sports realm.

 

Also, I'm not saying I don't buy Madden.. it's just usually one game per generation. The only ones I've bought were 95 for the snes, 97 for Saturn, 01 for N64, 03 for GC... as soon as I see a version for this gen that I think will be the definitive version, I'll pick it up .

[rpgfaker]

Well it sounds to me like this isn't about the franchise brands, or the annual sports offerings, instead I think the quality assurance dept. need to start doing their job. A well packaged turd may sell..but a great game will continue to sell.

[DaytonaUSA]

Well it sounds to me like this isn't about the franchise brands, or the annual sports offerings, instead I think the quality assurance dept. need to start doing their job. A well packaged turd may sell..but a great game will continue to sell.

 

The article mentioned nothing about quality control. And judging by reviews for their latest games, I don't see their quality being in question here at all. check out metacritic's reviews for Dead Space, Madden, and Mirror's Edge.

 

Btw, I found this comment to be kinda funny: "EA's plan also includes focusing more on games for the Nintendo Wii, which has been far outselling rival consoles like Microsoft Corp.'s Xbox 360 and Sony Corp.'s PlayStation 2."

 

 

.....Playstation 2? Hi, remember us... large shiney box owners...

[carmel_andrews]

Perhaps EA has put all it's eggs in one basket by concentrating on sports gaming content, not saying that that is a bad thing, as microprose proved in the 80's it can generate substantial revenues but only for a while

 

Whilst i realize that microprose and EA are to different models and 2 different quality standards (allegedy Microprose spent anything up to 2 years developing each of it's early titles....you wouldn't catch EA doing the same thing these days, perhaps EA should go back to the future and get back into original gaming content (non sports of course) say for instance an updated version of m u l e or PCS or realms of impossibility/HHM etc

Edited February 5, 2009 by carmel_andrews

[rpgfaker]

Well it sounds to me like this isn't about the franchise brands, or the annual sports offerings, instead I think the quality assurance dept. need to start doing their job. A well packaged turd may sell..but a great game will continue to sell.

 

The article mentioned nothing about quality control. And judging by reviews for their latest games, I don't see their quality being in question here at all. check out metacritic's reviews for Dead Space, Madden, and Mirror's Edge.

 

Btw, I found this comment to be kinda funny: "EA's plan also includes focusing more on games for the Nintendo Wii, which has been far outselling rival consoles like Microsoft Corp.'s Xbox 360 and Sony Corp.'s PlayStation 2."

 

 

.....Playstation 2? Hi, remember us... large shiney box owners...

 

Well I must have misunderstood what the CEO was saying..Ill just be quiet now

[Atarifever]

.....Playstation 2? Hi, remember us... large shiney box owners...

Yeah, why don't they discuss new product for the Saturn too. They're only mentioning viable consumer options. Haven't you guys got the memo yet?

[DaytonaUSA]

.....Playstation 2? Hi, remember us... large shiney box owners...

Yeah, why don't they discuss new product for the Saturn too. They're only mentioning viable consumer options. Haven't you guys got the memo yet?

 

That would be awesome if they made games for the Saturn again!

 

But yea.... PS3 is doing just fine. It was more of an error of the author of the article than EA themselves making a statement one way or another. But hardi har har, we get your joke.

 

09 will definitely be interestint though. PS3 has a lot of chances to up it's sales even further with some great exclusives, while the Wii has a chance to make some games to fill it's recent draught as companies are getting burned by high priced HD games not selling as well as they'd like, resulting in loss.

[Atarifever]

.....Playstation 2? Hi, remember us... large shiney box owners...

Yeah, why don't they discuss new product for the Saturn too. They're only mentioning viable consumer options. Haven't you guys got the memo yet?

 

That would be awesome if they made games for the Saturn again!

 

But yea.... PS3 is doing just fine. It was more of an error of the author of the article than EA themselves making a statement one way or another. But hardi har har, we get your joke.

 

09 will definitely be interestint though. PS3 has a lot of chances to up it's sales even further with some great exclusives, while the Wii has a chance to make some games to fill it's recent draught as companies are getting burned by high priced HD games not selling as well as they'd like, resulting in loss.

Thanks for taking that joke in the spirit it was intended.

 

[off topic]

I doubt at this point PS3 sales will improve, as they really don't have ANYTHING going for them on the business front, and some exclusive games (good or bad) can only appease fans at this point, not likely bring new ones. The Saturn and Dreamcast faced the same sad fate. Realistically this is the sad state Sony has gotten the PS3 into business wise:

 

The system loses money at a rate their software cannot make back, as their "razor blade" model needs a large install base to be profitable

Their overall Sony company lost a ton of money this year (for the first year long loss in 14 years), and is set to cut losses, not increase them. Thus, the price of the system can't change.

Their System served as a low cost HD media player, just as it appears companies are really taking download viewing seriously (look how successful netflicks is on the 360 for example).

Their system is prohibitively expensive due to including Blu_ray, when the High Def market is slowing down, and not likely to recover until the recession ends

 

They're in a corner. They don't have the war chest of Microsoft (enough cash on hand at all times to pay salaries for a year with zero sales), or the install base of the Wii. They are an expensive luxury good during the worst economic crisis since the Great Depression. They can't drop their price. They can't afford to bribe for shelf space. Their nearest competitor sells a similar product for half the price, with more content. Their parent company has tough (and I believe all still profitable) competition on all sides (Nintendo, Samsung, Nokia, Apple, etc.)

 

Some of the best systems ever made have runs like that. The Saturn and Dreamcast each had trouble getting install base, and the Saturn even had the price problem. Doesn't make the system a bad system. Makes them very good usually, as the parent company takes some chances with their IP, and lets anyone willing to try to program for the thing. However, I think it;s likely that a lot of companies are going to be moreconcerned with the PS2 than the PS3 going forward.

[/off topic]

[+HammR25]

They bought exclusive sports licenses because other companies were making a better game. I have a problem with that. 2K Sports makes games I enjoy more. Oops, I mean they used to make games I enjoyed more.

[DaytonaUSA]

They bought exclusive sports licenses because other companies were making a better game. I have a problem with that. 2K Sports makes games I enjoy more. Oops, I mean they used to make games I enjoyed more.

 

Someone was basically competing for their pay check. Sometimes you have to play hard ball. If they let 2K keep making games for half price like that, EA might have lost their main income source and the company could have disolved into thin air. When it comes down to your main bread basket, you can't play nice. If I were EA, I would have done the same thing... and I can guarantee you, if 2k had the money to buy the exclusivity, they would have too.

[godslabrat]

We can argue about Madden and frachises all day long, but we're still talking about EA, the company that not too long ago was crying about how hard it was to develop for so many consoles. EA commented that it would be really great if there were only one console they had to worry about.

 

It's possible that some of the bigwigs at EA are making decisions based on the way they wish things were, instead of the way they are.

[carmel_andrews]

Developing for one console....that aint going to happen, after all no one wants another situation like the 1983/4 crash, so no one publisher wants to put their eggs in one basket (which isn't an option at the mo, especially in these times)

[ninjarabbit]

EA hasn't figured out this generation yet.

 

In the beginning EA (and a lot of other companies) bet on the wrong horse in the 360, PSP, and PS3 rather than the Wii and DS. It costs a hell of a lot more to develop games for those systems than it does for the Wii and DS (with the exception of the PSP) because of HD graphic and such yet those systems have a much smaller installation base. It doesn't take a math major to figure out that high costs + low install base =/= profit.

 

To make manners worse EA decided to dumb-down the Wii versions of their sports games with the All-Play brand and has still yet to make a decent DS version of their sports games even though the DS is the most popular system on the planet right now. Wi Fi Madden on the DS would rule for example.

[+HammR25]

They bought exclusive sports licenses because other companies were making a better game. I have a problem with that. 2K Sports makes games I enjoy more. Oops, I mean they used to make games I enjoyed more.

 

Someone was basically competing for their pay check. Sometimes you have to play hard ball. If they let 2K keep making games for half price like that, EA might have lost their main income source and the company could have disolved into thin air. When it comes down to your main bread basket, you can't play nice. If I were EA, I would have done the same thing... and I can guarantee you, if 2k had the money to buy the exclusivity, they would have too.

And it's my right as a consumer to show them I won't support their paycheck if they act in monopolistic ways.

[Atarifever]

They bought exclusive sports licenses because other companies were making a better game. I have a problem with that. 2K Sports makes games I enjoy more. Oops, I mean they used to make games I enjoyed more.

 

Someone was basically competing for their pay check. Sometimes you have to play hard ball. If they let 2K keep making games for half price like that, EA might have lost their main income source and the company could have disolved into thin air. When it comes down to your main bread basket, you can't play nice. If I were EA, I would have done the same thing... and I can guarantee you, if 2k had the money to buy the exclusivity, they would have too.

Actually, I've read that it was the NFL that shopped the license out, to make things easier and more consistent, which was better for the bottom line of a sport as well managed financially as the NFL. The question isn't "is it wrong for EA to monopolize the market" but it instead becomes "what were they supposed to do: give up their main income source so some other company could buy it instead?" The NFL wanted someone to have a monopoly so things would be easier for them. That's hardly EA's fault.

[+HammR25]

EA also got exclusive rights with NASCAR, NCAA Football and NCAA Basketball as well.

[DaytonaUSA]

On a slightly related note, has anyone played the EA nascar games as of late? I decided to dload the demo for shits and giggles and I found the cars (from the outside) to be VERY cartoony looking. The textures just didn't look real.. it looked somehow very fake. I seem to remember the ps2 version of nascar to be on the more realistic side than this.

 

Anywho, complaint over.