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EA Suicide Watch Thread - The company isn't sinking! It's a feature.

This is a discussion on EA Suicide Watch Thread - The company isn't sinking! It's a feature. within the General PS3 Discussion forum, part of the Everything PlayStation; Originally Posted by Ps360 yea guys it's even worse than that. Der Dum Tish!...

  1. #41
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    Quote Originally Posted by Ps360 View Post
    yea guys


    it's even worse than that.
    Der Dum Tish!

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  3. #43
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    Stock Ticker: Why EA's Market Valuation Has Crashed | GamesIndustry International


    Two stock market stories have captured the attention of the games industry in recent months - the weak post-IPO performance of Zynga, and the dramatic bellyflop of THQ, whose shares have lost 80 per cent of their value over the past 12 months. Against that backdrop, few people seem to have noticed what's happening to Electronic Arts' valuation - yet a quick glance at EA's performance reveals a worrying situation and suggests a tough time ahead for the company which used to be the industry's biggest third-party publisher.

    Electronic Arts' stock has lost almost 40 per cent of its value since the start of this calendar year - and in fact, since the middle of last holiday season (around November 2011) the company's stock has been in a steady decline which has now wiped close to 50 per cent off EA's valuation. It's not a decline as sharp as THQ's, but it represents a much larger loss of value - THQ's market capitalisation is only around $50 million, whereas even after this enormous loss of value, EA is still capitalised at around $4 billion.

    To visualise EA's share price decline, let's look first at a simple graph of its performance over the past 12 months.







    The decline I'm talking about is clearly visible - starting last November and carrying on almost uninterrupted right up to this week. From top to bottom, that slope covers 50 per cent of EA's valuation, from a high of just over $25 in November down to a low of $12.29, recorded just last week. While it's not unusual for small companies' share prices to fluctuate this strongly during times of trouble, EA is not a small company. This fluctuation represents billions of dollars moving out of the company's valuation, and the fact that it's a trend which has persisted for six months suggests that investors are genuinely concerned about EA, rather than simply being spooked by rumours or speculation in the short-term.

    To get a clearer picture of where EA stands and what the problem might be, it's important to isolate the company's performance from wider economic factors. The most straightforward way to do this is to graph the firm's share price against the performance of the NASDAQ, the New York based stock exchange which lists most of America's high-tech companies. This next graph shows the NASDAQ's overall performance in red, alongside EA's stock in blue.









    This graph is useful, because it pinpoints the start of the problem - and also reveals that EA's performance is even weaker than it seems at first glance. As you can see, EA's share price pretty much tracked the performance of the NASDAQ up until the end of last November - meaning that market sentiment around the firm was basically neutral, with investors considering it no stronger or weaker than its peers on the stock market. Then, while the NASDAQ itself saw fairly solid gains in the first half of 2012, EA went into free-fall. To the 50 per cent loss of value in the stock itself, we now have to tack on around 10 per cent of additional losses - since EA's stock should reasonably be expected to be 10 per cent higher, if it had only managed to perform on the same level as its peers in the NASDAQ.

    Something has gone terribly wrong for EA, at least in the eyes of stock market investors. There are several plausible explanations for this - each of which is likely to be true to a certain degree, since it's unlikely that any one factor alone is responsible for driving the price down so far.

    Firstly, there's Star Wars: The Old Republic. EA's stock price went into decline after The Old Republic's launch, and hasn't recovered yet - and that timing is unlikely to be a coincidence. Expectations among investors for SWTOR were extremely high, given the game's much-publicised high development costs (which probably make it the most expensive game project ever), the strength of the Star Wars license, the track record of developer Bioware and, crucially, the tantalising possibility of building an ongoing MMO revenue stream for EA which would match the one enjoyed by rival Activision Blizzard from World of Warcraft. While it would be unfair to characterise SWTOR as a complete failure, it has certainly not been a success on the level which EA or its investors would have wanted. The game has lost 400,000 subscribers since February, and it seems inevitable that the company will be forced into an embarrassing (but probably commercially sensible) transition to a free-to-play model sooner rather than later.

    For many investors, the disappointing performance of SWTOR is almost certainly seen as the "final straw" in terms of the second factor in this decline - John Riccitiello's leadership of EA. Riccitiello has been CEO since 2007, and arrived to the job promising to turn the company around - outlining a transformation plan which would see EA focusing on quality, controlling costs, embracing digital business models and improving the company's tarnished reputation. In some respects, his successes are undeniable. EA's digital business is booming compared to most of its commercial rivals, and while the company still attracts brickbats from vocal fans on the internet on a regular basis, titles like Mass Effect, Dead Space and Battlefield have also earned it a reputation for creating high-quality "core" titles.

    In other respects, however, Riccitiello's transformation of EA is clearly struggling - not least in terms of timescales. When he arrived in 2007, it was anticipated that the process he wanted to bring the company through would take three years. In mid-2012, there's still no end in sight. It's unsurprising that the stock market would be extremely wary of a business which, to quote another industry watcher, is presently in year five of a three-year transformation project that's actually going to take seven years. SWTOR was almost certainly being used by many investors as a test of Riccitiello's strategy. It's a hugely expensive title, created by a studio with a reputation for quality (which Riccitiello himself added to the EA group as one of his first actions on becoming CEO), and focused strongly on digital business objectives, not least of which was being the flagship title for Origin, EA's Steam competitor. For SWTOR to fail makes Riccitiello's entire strategy look dodgy to investors who were already deeply concerned by the slow pace of progress.

    Not convinced that investors have lost faith? Look how quick they were to spread the frankly barmy rumour that Japanese-Korean free-to-play gaming firm Nexon was going to buy EA - an incredibly unlikely proposition from the outset, yet one which was widely reported and discussed both within the games business and within the investment community. That tells you something important; firstly, it illustrates how far EA has fallen within the market (despite having a healthy slate of titles and pretty solid financials), and secondly, it tells you that investors are very, very keen for something like that to happen. They'd like to see some kind of exit for EA, which means that they're not confident in the firm's future.

    Although the overriding factors in EA's valuation collapse are internal, it's important to look at wider factors within the industry as well - because the reality is that this is not a situation that's confined to EA. Many games publishers face a tough transition, not merely to next-gen console hardware next year (which is tough enough in itself), but also to a world of new business models and new competitors. Several of them probably won't make it unscathed, and the stock market knows it. Here's a graph showing EA alongside its two main US competitors, Activision Blizzard and Take Two.






    As you can see, EA is underperforming its rivals by a pretty significant margin - but look at Take Two's numbers by comparison. It starts declining later in the day than EA, only seriously dropping off in March of this year, but the decline itself is even steeper than EA's. Since March, Take Two has lost over 30 per cent of its value, which strongly suggests that many of the same concerns which are depressing investor confidence in Electronic Arts are also being applied to Take Two.

    The outlier here is Activision Blizzard, which is keeping its head - and its valuation - well above water. Since EA's fall from grace, Activision Blizzard is absolutely dominant in terms of market capitalisation - it's now worth over three times more than EA according to the stock market, which suggests a much higher degree of confidence in Activision than in any of its rivals.

    That confidence is based on a few factors. First, there's Blizzard - a company which has demonstrated an unmatched ability to break away from the hit-driven structure of the games business and instead create games that keep paying for themselves years after launch. The steady revenue stream from World of Warcraft may be slowly dropping off, but it's still the single most valuable product in the games industry, generating strong revenues month after month and making Activision Blizzard vastly more bankable than any other company in this sector. Secondly, there's Call of Duty - a franchise which has reliably produced the biggest-selling games of the year, every year for the past half-decade. That goose won't keep on laying golden eggs forever - in fact, it's probably already in decline - but it's another factor which investors see as reliable and bankable, at least for now.

    Even so, it's not all roses in the garden - even for Activision Blizzard. This final graph adds the NASDAQ composite to the picture, showing how the big three US publishers match up against their peers on the stock market.





    In this graph, the problems facing EA and Take Two are even more starkly revealed, as both of them are veering sharply away from the red line (which you can think of as a kind of average of the performance of American tech companies). Activision Blizzard, meanwhile, is just about managing to hug the line - slightly underperforming it in the past few months, if anything.

    In short, the games industry's most bankable company in the USA right now is only just managing to keep up with its tech industry peers, while the other top two publishers are rapidly spiralling down the plughole. The overall picture is not encouraging. Investors are clearly deeply worried about the games industry's biggest companies - they're cautious on Activision Blizzard, and downright negative on EA and Take Two. EA needs to focus on convincing the markets that Riccitiello's plan is going to work out, of course, but it's also clear that there's a wider challenge here for the entire games industry. The next transition, which has already started, is going to be the toughest one the industry has ever faced - the stock market knows it, and until the industry can show itself to be ready to cope with that transition, investors are going to steer well clear of videogame-related stocks.



    TL;DR



  4. #44
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    EA I need you to crap out at least one sequel more SSX game before you can't crap anymore.


  5. #45
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    it's breaking the $12 stock line


    abort ship

    https://www.google.com/finance?client=ob&q=NASDAQ:EA










    also for people late to the party, here's a summary on EA




  6. #46
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    I didn't see this thread originally

    But now that I have, all I can thing is "Great, the EA hate train is puffing away again"

    If you really hate EA, and wish for its demise, then simply put, DON'T BUY EA GAMES! Posting videos about Bill Cosby sliding down the stock graph doesn't further the "demise of EA".



  7. #47
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    Quote Originally Posted by wandarer View Post
    If you really hate EA, and wish for its demise, then simply put, DON'T BUY EA GAMES!
    good thing i don't

    the last game i am looking at from ea is Command and conquer generals 2, if it turns out to be shit im boycotting immediately.

  8. #48
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    Quote Originally Posted by Ps360 View Post
    good thing i don't

    the last game i am looking at from ea is Command and conquer generals 2, if it turns out to be shit im boycotting immediately.
    On a completely off-topic topic, PS360 I watched your video in your sig on player entitlement, and have to say he had me with IGN is abysmal.
    Back on topic, why even give C&C Generals a sniff? I mean if you want to boycott EA go the whole nine yards and say No to anything they put out, even games you want to play.

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    Quote Originally Posted by Lasombra View Post
    On a completely off-topic topic, PS360 I watched your video in your sig on player entitlement, and have to say he had me with IGN is abysmal.
    Back on topic, why even give C&C Generals a sniff? I mean if you want to boycott EA go the whole nine yards and say No to anything they put out, even games you want to play.
    because C&C generals and zero hour is the best RTS of all time


    want to see what they will do with it.

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    Quote Originally Posted by Ps360 View Post
    because C&C generals and zero hour is the best RTS of all time


    want to see what they will do with it.
    But then it's not a boycott, it's simply not buying games you don't like and were not going to like anyways.

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  11. #51
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    Quote Originally Posted by Lasombra View Post
    But then it's not a boycott, it's simply not buying games you don't like and were not going to like anyways.
    i didn't say i would buy the game, i just said i would see how it turns out, look at trailers, articles, you know.

  12. #52
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    The amount of hate posts you can find that has anything to do with EA or Bioware made by Ps360 is disturbing.

    I can't say I understand why EA gets so much shit from everyone, but then again I can't say that I care. Oh well, back to lurking.



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    I don't like EA either and as for Bioware, well I'm one of those who belongs in the "they fucked up mass effect" camp. So yeah, plenty of people like that.

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    8:28 = EA goes to pure insanity mode

    EA attempts to calm nervous investors during its annual stockholder meeting | VentureBeat

    Electronic Arts’ stock has been in decline since the Battlefield 3 and The Sims 3 publisher warned investors of a tough upcoming quarter. Now EA is attempting to calm panicking stockholders.

    During the company’s annual meeting with stockholders today, EA CEO John Riccitiello blamed the falling stock price on investors’ connection of EA with console retail gaming, a business that has been in decline. Riccitiello pushed EA’s new direction toward digital gaming, including mobile and social platforms, and touted the $1.2 billion the company earned in digital sales in the 2012 financial year.

    Riccitiello compared a retail product like The Sims 3 with a CD — a one-time investment for the consumer — while a service like the music-streaming program Spotify can bring in constant revenue, something EA is hoping to achieve with games like The Sims Social.

    Still, stockholders are clearly growing restless. During a question and answer section toward the end of the meeting, one investor said, “Every year you talk about how well EA is doing. Where is the return for shareholders?”

    Riccitiello responded to concerns with a plea for patience, to wait for the digital revenue to continue to grow and for the new console cycle to bring life back into the retail market.

    EA will release the earnings report for its first quarter of the 2013 fiscal year on July 31.








    CURRENT EA STOCK PRICE: $10.94

    https://www.google.com/finance?client=ob&q=NASDAQ:EA

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    If you purchased a football game from EA from 2005 to present day, you're entitled to a refund because of an EA settlement of a lawsuit where it was alleged the were in a monopoly allowing them to jack up the price of NFL games. It's $1.95/title if it was a title for this gen, and $6.97/title for last gen. EA shelled out a mere $27m for the settlement.

    EA is also not allowed to renew an exclusive deal with the NCAA after their current deal expires in 2014. They can still have a new deal, just not exclusivity. The NFL monopoly, er, exclusive license is not affected.

    Quote Originally Posted by Ps360 View Post
    oh yea did i mention they are getting sued by over thousands of football players


    Madden NFL vs. Retired Players: Class action lawsuit may change EAs famous football franchise
    That lawsuit will go nowhere. They have been sued fpr tjos before, and it's never been successful. It's just a few no name ex-players trying to make money the American way since they turned out to be shitty players; suing somebody. Having your day in court doesn't mean you have a legitimate case. EA may settle with them to save court costs, but it won't hurt them in the long run.

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    Quote Originally Posted by Mihalick View Post
    That lawsuit will go nowhere. They have been sued fpr tjos before, and it's never been successful. It's just a few no name ex-players trying to make money the American way since they turned out to be shitty players; suing somebody. Having your day in court doesn't mean you have a legitimate case. EA may settle with them to save court costs, but it won't hurt them in the long run.
    EA's Madden Lawsuit Settled: NCAA Exclusivity Lost, Gamers Entitled to Small Claims - Mobile & Apps

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    I'm not sure what that has to do with the part of my post you quoted, it's a completely unrelated lawsuit.

    I did touch on this lawsuit as well though.

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    Quote Originally Posted by Mihalick View Post
    I'm not sure what that has to do with the part of my post you quoted, it's a completely unrelated lawsuit.
    wern't they suing ea for madden but instead got rid of NCAA




    anyways more video



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    Ah, gotcha. They were gunning for both, although Madden was their main target.

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    EA and Insomniac GAMES Shock GAMERS on FACEBOOK

    Insomniac Games Dafuq ? *sigh*

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