EA stock drops due to SWTOR, again.

[Balmuck]

Article can be found here.

 

 

Pretty sad actually. They said that the lay off rumors were just rumors at that, but apparently, they aren't at all. They'll be laying off even more workers in upcoming months.

[Thekze]

After reading this,

 

Hard to know if EA will take SWTOR seriously anymore.

[Alsax]

EA doesn't care about quality, they care about getting paid. Hence why Madden has sucked for the last ten or so years. Hence why Crysis 2 was rushed, and why Crysis 3 will be rushed. Etc., etc.

[Dezzi]

Article can be found here.

 

 

Pretty sad actually. They said that the lay off rumors were just rumors at that, but apparently, they aren't at all. They'll be laying off even more workers in upcoming months.

 

So they were lying about layoffs while SWTOR was lying about declining subscription numbers?

 

I'm not sure I like where this is going.

[Doreian]

You didn't read the article then. Go back and actually read it. Thnx.

[CrunkShizzle]

EA must make some pretty crap games if there stock is dropping because of 1 game

[Shaith]

EA plans to hire in other areas of its company, he said. On the call, Ken Barker, EA's interim chief financial officer, said the company expects to end its fiscal year with 9,700 employees, up from 9,200 now.

 

As I recall, EA was working on changing their distribution models quite a bit, so there's every possibility that the layoffs they're talking about are in areas dealing with packing and shipping physical goods, rather than in developmental staff. Also worth noting is the quote above - while they're laying some folks off now, they're predicting a net GAIN of 500 employees at the end of the fiscal year, not a net LOSS. They're pretty heavily invested in Origin (to compete with Steam) - so I'd imagine they're trying to leverage more into digital distribution, and that doesn't require nearly as many box stuffers and shippers.

[ironix]

So they were lying about layoffs while SWTOR was lying about declining subscription numbers?

 

I'm not sure I like where this is going.

 

Yeah, I remember the rumours about layoffs and they said "no no no, we're not laying anyone off" and now they lay people off...

[SuperBoogly]

After reading this,

 

Hard to know if EA will take SWTOR seriously anymore.

 

They did before? Its Star Wars, people will play for that reason only. They wont care if the game is boring, tedious and just WoW with some Lightsabers will they? Nope, because for some people those "rose colored glasses" never come off

[Balmuck]

So they were lying about layoffs while SWTOR was lying about declining subscription numbers?

 

I'm not sure I like where this is going.

 

Well, what had happened is that some analyst, specifically one analyst, wrote an article about how EA is going to lay off more people, at which point someone posted it on the forums and everyone ridiculed him and the guy who wrote the article..

 

Turns out the guy was 100% right, lol..\

[Tiriensoul]

EA doesn't care about quality, they care about getting paid. Hence why Madden has sucked for the last ten or so years. Hence why Crysis 2 was rushed, and why Crysis 3 will be rushed. Etc., etc.

 

You act as if EA are the only ones that care about money.

Atleast EA is giving developers some time to try and do something, anything new... While others *Cough* Acitvision does not.

Even Vivendo who owns activision has said that they are disappointed in them, even tho Mw series has sold like crazy.

 

Just because you hear something bad about EA doesn't mean its true, it's mainstream to hate EA now i see, feeling cool yet?

[chrisftw]

all i gotta say is there's never been an MMO under the scope as much as TOR has.. not even WOW.

 

if TOR could count how many people are breathing down the back of their necks along with their subs they'd Dwarf WOW in a second.

 

news, media, players, non players, people who don't even play mmos, the guy next door

 

its crazy..

[Tigerstarr]

Article can be found here.

 

 

Pretty sad actually. They said that the lay off rumors were just rumors at that, but apparently, they aren't at all. They'll be laying off even more workers in upcoming months.

 

They can start by merging the servers.

[Jederix]

Internet forums. The only place where someone can post that 2 + 2 = 7 and 50 people will come to their defense when it was questioned.

 

Did you actually read that article, or did you just assume that because of SW:TOR this has occurred. I mean, its not like the layoffs are because our economy is in the crapper or anything. That'd be crazy.

[ironix]

all i gotta say is there's never been an MMO under the scope as much as TOR has.. not even WOW.

 

if TOR could count how many people are breathing down the back of their necks along with their subs they'd Dwarf WOW in a second.

 

news, media, players, non players, people who don't even play mmos, the guy next door

 

its crazy..

 

Star Wars IP + massive development budget. Of course a lot of people are following this.

[Jederix]

They can start by merging the servers.

 

Ready slowly so it sinks in. THERE. WILL. BE. NO. SERVER. MERGERS.

 

I don't have a crayon, so I can't draw you a picture. This post will just have to do (though it will be completely lost on you, I'm sure).

Edited May 8, 2012 by Jederix

[Kthx]

Pretty sad actually. They said that the lay off rumors were just rumors at that, but apparently, they aren't at all. They'll be laying off even more workers in upcoming months.

 

This is straight from the article:

 

On the stock price: "The company's take on the news seemed to help appease anxious shareholders. In after-hours trading following the call, EA's stock was down 77 cents, or 5.1 percent, to $14.36. Before the call, the company's shares were off as much as $1.52, or 10 percent."

 

On hiring: "Brown said the number of layoffs would be 'small.' EA plans to hire in other areas of its company, he said. On the call, Ken Barker, EA's interim chief financial officer, said the company expects to end its fiscal year with 9,700 employees, up from 9,200 now."

 

[in other words, a projected net gain of 500 employees (or +5%).]

 

On earnings: "In the company's fiscal fourth quarter, EA earned $400 million, or $1.20 a share, on sales of $1.37 billion. Those results topped the company's performance from a year earlier, when it earned $151 million, or 45 cents a share, on sales of $1.09 billion."

 

tl;dr – Share prices dropped, but much less than expected, hirings are up, and earnings beat expectations.

Edited May 8, 2012 by Kthx

[Angedechu]

It's of course useless to point out that since TOR is completed....

[Jederix]

This is straight from the article:

 

On the stock price: "The company's take on the news seemed to help appease anxious shareholders. In after-hours trading following the call, EA's stock was down 77 cents, or 5.1 percent, to $14.36. Before the call, the company's shares were off as much as $1.52, or 10 percent."

 

On hiring: "Brown said the number of layoffs would be 'small.' EA plans to hire in other areas of its company, he said. On the call, Ken Barker, EA's interim chief financial officer, said the company expects to end its fiscal year with 9,700 employees, up from 9,200 now."

 

In other words, a projected net gain of 500 employees (or +5%).

 

On earnings: "In the company's fiscal fourth quarter, EA earned $400 million, or $1.20 a share, on sales of $1.37 billion. Those results topped the company's performance from a year earlier, when it earned $151 million, or 45 cents a share, on sales of $1.09 billion."

 

tl;dr – Share prices dropped, but much less than expected, hirings are up, and earnings beat expectations.

 

This is not place for facts. Only conjecture, hyperbole, and "me me me" grandstanding is allow in these parts.

[Mrpoodles]

 

 

should help.

[Belogard]

Ummm...read the entire article. It looks like EA's made a hefty profit, especially when compared to last year, and expects next year's to be even more. It doesn't specify in which division the layoffs will occur, as well.

 

Don't read too much into things.

[thominoh]

The thing is.. loosing 400,000 subs in TWO month is HUGE.. I wonder what the numbers will be for end of May? I know my sub is cancelled.. Tis a shame because I really had high hopes for the game.. LOVED the stoylines... BUT BUT.. It just doesn't have a good end game, and replayability..

[WereMops]

Article can be found here.

 

 

Pretty sad actually. They said that the lay off rumors were just rumors at that, but apparently, they aren't at all. They'll be laying off even more workers in upcoming months.

 

So you, glanced at an article and decided to start spreading lies and false information?

 

The Redwood City-based video-game maker said the number of active subscribers to its "Star Wars: The Old Republic" game fell by 400,000 to 1.3 million from the beginning of February to the end of March. On a conference call with analysts and investors, EA executives attributed the decline to a drop-off in "casual" players and those who were just testing it out. A growing portion of the total number of subscribers are actually paying to play the game, they said.

 

EA invested years and millions of dollars into the massively multiplayer online game, which some analysts expected to rival Activision's popular "World of Warcraft." Company officials said they will continue to invest in the game and plan to focus on growing its subscriber base.

 

"I understand that a lot of investors are very interested in 'Star Wars,' " said CEO John Riccitiello. But, he added, "The game's performance is very much in line with our original assumptions ... and what we've been guiding folks to over the last couple of years."

 

EA spokesman Jeff Brown declined to say how many workers EA would lay off and whether any EA workers in the Bay Area would be affected. But Brown said the number of layoffs would be "small." EA plans to hire in other areas of its company, he said. On the call, Ken Barker, EA's interim chief financial officer, said the company expects to end its fiscal year with 9,700 employees, up from 9,200 now.

 

Next time you want to spread fear, read what you link to.

 

EDIT: Stocks always drop when there's a rumour about layoffs and there's no information to why they are laying off people, after they released the information the stock regained some of the strength (not all because some people are still cautios or already diversified into something else).

 

SWTOR is still getting funded, doing as well as they've asumed, go Doom & Gloom somewhere else please, you were wrong.

Edited May 8, 2012 by WereMops

[Imhotep]

Ok did anyone actually READ this article or did you just see 400k lost and go into doom n gloom mode? They are still above 1 mill subs which is very good for an MMO. WoW is an anomally it is not the norm.

 

Also they are HIRING. As stated that will have 9700 employees compared to 9200 now. The restructuring is happening as they adjust a distribution model to primarily digital.

 

If you don't like the game then don't play it, but for the love of God quit purposely trying to cause problems.

[Dezzi]

So you, glanced at an article and decided to start spreading lies and false information?

 

Next time you want to spread fear, read what you link to.

 

Absolutely correct, but that still leaves the matter of them talking out of both sides of their mouth...

 

EA earlier stated that the rumors of layoffs were just rumors, but now we know they actually are laying people off, regardless of any net gain in staff--the distinction doesn't matter to those being laid off. At the same time Daniel Erickson was saying--just two weeks ago--that SWTOR's subscriptions hadn't changed, but now we know they have.

 

Does this kind of double-speak and smoke and mirrors showmanship inspire confidence in you?