Electronic Arts Loses $3 Billion in Stock Value

Updated:12:57 PM CEST Aug,31

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Gameguru Mania News - Nov,29 2017 -

Electronic Arts Loses $3 Billion in Stock Value - briefly
(hx) 06:24 PM CET - Nov,29 2017 - Post a comment / read (3)
EA stock is down 8.5 percent this month and CNBC is attributing that fact to the latest EA stunt with loot boxes and unlocks in Star Wars Battlefront II. Furthermore, analysts believe the micro-transaction model EA is using may not be viable going forward and it really didn't help that Battlefront II didn't sell well over the Black Friday shopping period. I think the EA chickens are coming home to roost. EA's stock is down 8.5 percent month to date through Tuesday compared with the S&P 500's 2 percent gain, wiping out $3.1 billion of shareholder value. Its competitors Take-Two and Activision Blizzard shares are up 5 percent and 0.7 percent respectively during the same time period.

After EA gave a December quarter sales forecast slightly below Wall Street estimates on Oct. 31, some analysts suspected it was due to the "Stars Wars" title. The shares fell 4 percent the following day.

Then an uproar began after details about the game's character progression were revealed, a system so tedious players are resorting to rubber bands on controllers to acquire credits to level up.

The gaming community flooded social media and Reddit with thousands of negative posts, saying EA is unfairly compelling consumers to spend more money through micro-transactions for content that should be part of the initial $60 game price.

The controversy seems to be hurting the sales of the game, which was officially released on Nov. 17.
Though the company suspended microtransactions based on the pay-to-win outrage from many fronts (possibly including IP owner Disney itself), Jorgensen says they are still hoping to add them back into the game. They quote him as saying "We're not giving up on the notion of MTX [microtransactions]," because they are looking at "layering in another economic model to try and make up for some of the economics you lose" by not selling DLC.

last 10 comments:

gx-x	(08:17 PM CET - Nov,29 2017 )

Csimbi	(09:23 PM CET - Nov,29 2017 )
lol Seriously though. Greed, greed, greed. That's all there is to EA.

lorcro2000	(01:47 PM CET - Nov,30 2017 )
Yeah, screw that "make the best game you can and collect a reasonable profit" garbage. it's now all about maximum profit at any cost. These jokers are savaging the entire damned gaming industry with this garbage and I'm glad they're bleeding value. They richly deserve to. May it not stop here.

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