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SWTOR and the EA stock plummet


Taurusaud

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i am totally ignorant about stock market, but i did some checking on yahoo finance

 

EA:

30 december: stock value $20.60

now: stock value $12.00

 

looking at blizzard activision i see

30 december: stock value $12.42

now: stock value $11.44

 

 

but i have the feeling one can't compare directly stock value, maybe the number of these actual share does import.

 

 

Sound to me that EA was much higher in december and there are now about equal. Keep in mind that electronics arts is present on many franchise (battlefield, EA sports, The Sims, mass effect, need for speed, crysis...) while activision is essentially blizard games and call of duty games (and prototype).

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The stock market likes the prospect of growth way more than the reality of predictable, stagnant sales. EA's stock ran up a lot on the prospect of 2 - 2.5 million subs netting up to $450 million a year in new, recurring revenue. The margins on those digital subscriptions would have been fantastic.

 

They ran the stock up to $8 billion in market cap on the prospect of that and their other digital initiatives being huge hits, and in reality the performance of both has been, well, boring. So the stock market would rather go speculate on another frenzied growth story until that bursts too.

 

The only reason the speculative frenzy might matter to us is if the EA brass decided to slash and burn SWTOR development and hype something else to please investors and save their own jobs - and unfortunately, the huge ginormous layoffs from last month told me - along with EA CEO's comments about how unimportant SWTOR is compared to EA sports - that maybe that's what they're up to. But I'd love to be wrong.

 

^ This. It's why in the long run why the world economy is gonna be hurting. Too much short term gain and stock inflation while long term vision/gain has been sacrificed for it.. It seems every investor is looking for the get rich quick then moving gains into safe investments with low returns like bonds.

Edited by Anishor
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if investors/ EA or however the stock market works beleived that TOR would instantly achive 11 million players like wow then they deserve their loss.

 

wow didnt achive it level untill at least a year after launch and againg my guess is that EA wanted TOR to be a wow killer which we all kept saying it wouldnt.

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Until the global economy bounces back full and more people can actually find work 'luxury item' companys that sell video games/DVDs/CDs and so on will find their stock getting lower

 

The only thing that they could do at the moment is to start to target a wider asian audience as they seem to be the only countries that have a greater financial stability

 

when the Euro crisis ends and when more people in the US are getting back to work then companies like EA will start to see significant market improvement

Edited by irishtim
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ea needs to build a positive reputation with us (their customers).

 

superimposing origin on all their titles, selling them on that platform more expensive than in stores even though they save packaging shipping and handling AND what the stores earn. then ontop of that including spyware into origin. yeah that does not contribute towards a positive reputation for a company.

 

and here on the forums everyone believes if something goes wrong with swtor it was the suits @ ea, not bioware nono they can do no wrong.

 

in the end they make money from us buying their stuff and I am so fed up with ea, that I even wont buy games that interest me because I really don't want to give them my money anymore.

 

I dunno what the leadership of ea is thinking, first they threaten the creatives with loss of their job and wonder why they stop being creative (referring to all the companies they destroyed, like westwood, origin systems, bullfrog etc etc) now they state to have learned from their mistakes only to make new ones like all too obvious and greedy customer exploitation (instead of what they did before) and think they get away with it.

 

I am glad that they don't and I seriously hope that ea goes down for good this time.

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i am totally ignorant about stock market, but i did some checking on yahoo finance

 

EA:

30 december: stock value $20.60

now: stock value $12.00

 

looking at blizzard activision i see

30 december: stock value $12.42

now: stock value $11.44

 

 

but i have the feeling one can't compare directly stock value, maybe the number of these actual share does import.

 

 

Sound to me that EA was much higher in december and there are now about equal. Keep in mind that electronics arts is present on many franchise (battlefield, EA sports, The Sims, mass effect, need for speed, crysis...) while activision is essentially blizard games and call of duty games (and prototype).

 

If you go back a few more months the Stock price was almost $25, so EA's stock was going down before SWTOR came out. This has more to do with the world economy then just one game....

 

BTW, Activison does a LOT of movie tie in with games, such X-Men, Spiderman, MIB, Battleship, Ice Age, Transformers, etc.. and they also have the Nascar franchise and lots of other games, so they don't just make Blizzard and Call of Duty games... Activision is a close 2nd to EA in the amount of games they put out... And they both have similar stock prices..

Edited by Monoth
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If you go back a few more months the Stock price was almost $25, so EA's stock was going down before SWTOR came out. This has more to do with the world economy then just one game....

 

World economy has a major impact, yes. Every company is taking a hit thanks to EU mess and Greece.

 

In other news Vivendi is planning to sell part or all of its share in Activision Blizzard.

Edited by Muskaan
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If you go back a few more months the Stock price was almost $25, so EA's stock was going down before SWTOR came out. This has more to do with the world economy then just one game....

 

$25 was it's peek. The problem with EA stock is SWTOR, as soon as I saw there was no end game I knew it was not going to be a winner for EA and pulled my money out. 6 months in and still no real end game, doesn't matter much now tho the damage is done. Anyone who looks at an investment is going to look at the product and when SWTOR was released it was obvious that the player base was going to rapidly dwindle, and that's not a good thing when investing. SWTOR is a bad investment at this point, and will be until EA get a team who can craft a MMO better than BW has in the door.

 

I also stay away from china stocks because they run their businesses by censoring any negativity, and these forums is why I would never invest in EA again, and company that squashes free speech like this place does is a company that will do anything to look good on the outside while rotting within. Any company that makes something like that a policy will always be a bad buy.

Edited by LohKey
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The world economy comes into play a bit, but there is much more to it.

 

SWTOR was a big hype machine that did not live up to itself. With this came a great deal of animosity directed at EA and Origin.

 

I find that stocks run in emotional waves. $25 was obviously inflated and there was a correction. It will stabilize at some point and begin to grow again. If anyone bought stock at +$18 because of one title in EA's portfolio they deserve to have lost their butts in the market. Just like the people that paid +$30 for facebook.

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$25 was it's peek. The problem with EA stock is SWTOR, as soon as I saw there was no end game I knew it was not going to be a winner for EA and pulled my money out. 6 months in and still no real end game, doesn't matter much now tho the damage is done. Anyone who looks at an investment is going to look at the product and when SWTOR was released it was obvious that the player base was going to rapidly dwindle, and that's not a good thing when investing. SWTOR is a bad investment at this point, and will be until EA get a team who can craft a MMO better than BW has in the door.

 

If the Peek was the day SWTOR came out and then it started to drop steeply, then I would agree with you, but the fact that stock was already going down well before SWTOR came out tells me there are other factors....

 

Also, if a MMO with tons of subscribers makes a stock desirable then why is Blizzard stock at around $11? Considering they still have over what 8 million subscribers? by your logic Blizzard stock should be around $100 a share...

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If the Peek was the day SWTOR came out and then it started to drop steeply, then I would agree with you, but the fact that stock was already going down well before SWTOR came out tells me there are other factors....

 

Also, if a MMO with tons of subscribers makes a stock desirable then why is Blizzard stock at around $11? Considering they still have over what 8 million subscribers? by your logic Blizzard stock should be around $100 a share...

 

That depends on many factors. The biggest one is how diluted the pool of shares is. It could be that Bilizzard split 10 times...

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If the Peek was the day SWTOR came out and then it started to drop steeply, then I would agree with you, but the fact that stock was already going down well before SWTOR came out tells me there are other factors....

 

Also, if a MMO with tons of subscribers makes a stock desirable then why is Blizzard stock at around $11? Considering they still have over what 8 million subscribers? by your logic Blizzard stock should be around $100 a share...

 

It peeked right before the free time started, than people really figured out there was no end game etc.. Also you have no idea how stock price relates to company value, it's not the price it's the shares outstanding etc...

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I noticed how those people thought the game would be pvp focused guess they were wrong lol

 

They usually are. If their subset of the community was as large as they think it was, there would be a plethora of successful PvP based MMOs on the market right now.

 

There aren't, because they don't.

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They are still making profit so I doubt SWTOR has effected it that much. There must be something else going on at EA (e.g. like the lay-offs).

 

Plus you have other things, like SOE will be launching Planetside 2 soon. All the hype is directed towards at atm.

Edited by NasherUK
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That depends on many factors. The biggest one is how diluted the pool of shares is. It could be that Bilizzard split 10 times...

 

And those same factors come into play with EA also.....

 

I just find it funny that people try their hardest to pin EA's stock prices on SWTOR alone.... It's sad people become so bitter / jaded that Bioware didn't make the game THEY wanted that they need to trash the game anyway possible

 

Is SWTOR perfect? not by a long shot, but for a lot of people it's still a fun game, people need to get over themselves and move on.

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there is no implication .... EA and Activision stock have behaved in this under-performing manner for a long time now. Recent developments don't mean much.

 

Also LOL at people thinking "the worst company ever " title really has significance, its just loud segment aka videogamers. The same people will keep going back for more.

Edited by Stovokor
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Amazing how many people know nothing about how the stock market works.

 

So, class, here's the lesson for today: "Buy the rumor, sell the news."

 

(Ask your classmate Google for the notes if you don't understand.)

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This really bores me to tears, I am playing every day and always my server is full, just about always there is a queue on prime time to even get in, up to 40 minutes.

 

This has not changed in the slightest since server transfer so take your doomsday theories and shove them.

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