Ensquire Posted July 28, 2012 Author Posted July 28, 2012 (edited) They're really not though. The stock was up 5% yesterday and if you want to get really technical, EA is trading at an EBITDA multiple of ~7.5x; which is in line with Activision. That means that the market does not view EA as an inherently worse company than someone like Activision. Say what you want about EA, but they are pretty much too big to fail; so you get used to them. Are you on crack they are trading at 11.41 Look at there performance for the past 52 weeks, that looks like a double black diamond ski run to me http://investor.ea.com/stockquote.cfm they are one basis point away from being at their rock bottom Edits: Laugh, that improvement your talking about is from the worse possible point they as a company have been in in the past five years Edited July 28, 2012 by Ensquire
spellegren Posted July 28, 2012 Posted July 28, 2012 I don't believe all game companies are run like this, even BioWare's other branches. But when you have EA looming over your shoulder insisting to see immediate increases in subscriber numbers yet cutting funding in all departments, coupled with horrible management, all the while listening to the marketing department instead of your core audience... yeah. You can see where that's going. This is the most telling comment as to why SWTOR flopped. It's too bad EA won't take heed.
Typeslice Posted July 28, 2012 Posted July 28, 2012 (edited) Are you on crack they are trading at 11.41 Look at there performance for the past 52 weeks, that looks like a double black diamond ski run to me http://investor.ea.com/stockquote.cfm they are one basis point away from being at their rock bottom You really don't know what you're talking about. Do you even know what I was trying to convey with my post? Keep this argument about the game itself. No one is disputing that they've lost a ton of value over the past year, but all it will take is one successful earnings quarter and they'll be fine. The market does not yet view EA as a bad company. In fact, most analysts have them as a hold or a buy and expect a strong 2013. Edited July 28, 2012 by Typeslice
Sathid Posted July 28, 2012 Posted July 28, 2012 Yah and Forbe's said it was a good time to buy a house on the cover in 06,,,look what happened.
Ensquire Posted July 28, 2012 Author Posted July 28, 2012 (edited) You really don't know what you're talking about. Do you even know what I was trying to convey with my post? Keep this argument about the game itself. No one is disputing that they've lost a ton of value over the past year, but all it will take is one successful earnings quarter and they'll be fine. The market does not yet view EA as a bad company. In fact, most analysts have them as a hold or a buy and expect a strong 2013. Hey you were the one that brought performance of stock up, But while we are on the subject, when a company stock bottoms out days before the quarterly shareholder meeting (july 31) its never usually a good sign Edited July 28, 2012 by Ensquire
SNCommand Posted July 28, 2012 Posted July 28, 2012 Yah and Forbe's said it was a good time to buy a house on the cover in 06,,,look what happened. Oh burn, this is pretty much the best answer when someone believe investors and analysts know what they are doing
Typeslice Posted July 28, 2012 Posted July 28, 2012 (edited) Hey you were the one that brought performance of stock up, But while we are on the subject, when a company stock bottoms out days before the quarterly stockholder meeting (july 31) its never usually a good sign First of all - I was talking EBITDA multiples - you were talking stock prices you pulled from yahoo finance. Let's again keep things in perspective. And actually, the stock traded up 5% on Friday. Edited July 28, 2012 by Typeslice
Shingara Posted July 28, 2012 Posted July 28, 2012 Hey you were the one that brought performance of stock up, But while we are on the subject, when a company stock bottoms out days before the quarterly shareholder meeting (july 31) its never usually a good sign stock dropping can be for any reason, a ceo leaves, a rumor of someone buying them out or a buyout failure. EA isnt limited to usa, its world wide and covers many platforms.
Typeslice Posted July 28, 2012 Posted July 28, 2012 stock dropping can be for any reason, a ceo leaves, a rumor of someone buying them out or a buyout failure. EA isnt limited to usa, its world wide and covers many platforms. Exactly. OP, come in here quoting stock prices when EA starts trading at like 3 or 4x. Will you even know when that is if it happens?
Lt_Latency Posted July 28, 2012 Posted July 28, 2012 (edited) Yah and Forbe's said it was a good time to buy a house on the cover in 06,,,look what happened. It was if you could afford it. Too many people tried and couldn't Edited July 28, 2012 by Lt_Latency
Keta Posted July 28, 2012 Posted July 28, 2012 I don't own EA stock, why should I care? EA stock has been a horrid investment for quite some time. Whether the title has been a financial disaster for EA should only matter to us if they're going to pull the plug on it (which I doubt) or if we're in a "what you see is what you get" mode for the remainder of the games life.
FSA_shadow Posted July 28, 2012 Posted July 28, 2012 Doubt TOR has anything to do with EA's recent economic development, why? Because all gaming companies have started to feel the heat the last year or more. My personal belief is that the recession has finally hit the industry, so much for recession proof. This. Guys who make dead rising has a bunch of layoffs the other week. It's the industry as a whole.
Shingara Posted July 28, 2012 Posted July 28, 2012 (edited) Exactly. OP, come in here quoting stock prices when EA starts trading at like 3 or 4x. Will you even know when that is if it happens? Yup, and i dont think numptys saying EA were the worst company in the world, lol ye cos arms dealers sell ak74's that fire daisys, did the stock prices much cop. Edited July 28, 2012 by Shingara
TheBBP Posted July 28, 2012 Posted July 28, 2012 NINTENDO has posted huge losses. I guess this TOR "failure" is very wide-reaching.
Aricus Posted July 28, 2012 Posted July 28, 2012 This. Guys who make dead rising has a bunch of layoffs the other week. It's the industry as a whole. I agree, Blizzard has made some layoffs not to long ago, plus their stock is hoovering around the same price as EA's. I just think the gaming industry is declining. It'll be worst if the new console systems that come out banns the use of pre-own copies.
FSA_shadow Posted July 28, 2012 Posted July 28, 2012 NINTENDO has posted huge losses. I guess this TOR "failure" is very wide-reaching. So have SEGA. They closed parts of Sega of America down.
Ensquire Posted July 28, 2012 Author Posted July 28, 2012 This. Guys who make dead rising has a bunch of layoffs the other week. It's the industry as a whole. Dead Rising isn't an MMO we are playing currently
FSA_shadow Posted July 28, 2012 Posted July 28, 2012 Dead Rising isn't an MMO we are playing currently Who cares? The industry as a WHOLE is suffering, couldn't care less if it's an MMO or not an MMO. Nintendo, Sega, Warner Bros, EA, Blizz, Microsoft... They're all having layoffs.
Aricus Posted July 28, 2012 Posted July 28, 2012 Who cares? The industry as a WHOLE is suffering, couldn't care less if it's an MMO or not an MMO. Nintendo, Sega, Warner Bros, EA, Blizz, Microsoft... They're all having layoffs. It's the 80's all over again!
Ensquire Posted July 28, 2012 Author Posted July 28, 2012 Exactly. OP, come in here quoting stock prices when EA starts trading at like 3 or 4x. Will you even know when that is if it happens? None of the above reason mentioned are true in EA case, The case with nintendo is more of a hardware issue then anything, investors don't believe in the wii u (thats what its called anyways) and apple and iphone are taking a chunk out of the mobile gaming market which has been nintendo's niche for years
Shingara Posted July 28, 2012 Posted July 28, 2012 (edited) Dead Rising isn't an MMO we are playing currently When you talk about EA stock prices you dont go by mmos, they arnt an mmo company, they are turning into one but they arnt one. they make single and multiplayer games for console, pc, mobile and web browsing. MMO's are a tiny tiny tiny part of there industry model. EA probably make more from there game engines that swtor. Edited July 28, 2012 by Shingara
Gruug Posted July 28, 2012 Posted July 28, 2012 What other product have they produced in the last two years aside from TOR and BF3 that warrants a multimillion dollar ad campaign. BF3 is what caused most of their financial issues. Forbes should consider that travesty. TOR made up for it's monetary investment and produced a profit, which is the only thing shareholders should be concerned with. Re: the comment on BF3. Not hardly. Recently EA/Dice released Premium service to BF3 fans. It had sold slightly over 800,000 units in the first month. It is still selling. Premium is to bring 4 new map packs and many new features to BF3 which are highly anticipated. Plus, the BF franchise is still one of EA's best cash cows. So much so that EA/Dice are planning on releasing BF4 sometime late in 2013. Now, I also call into question some of the other things said in the article but I am NOT a defender of EA's current CEO. I think he is (being diplomatic) not good for gaming and gamers. EA has made some very bad choices...(SWTOR NOT being one of them...IMHO) including the fact that they do not use strict quality control on games and release too many defective or incomplete games. I give SWTOR a slight pass in that department only because it is an MMO and many many MMO's go through intial launch growing pains only to recover within the first year. SWTOR is a good MMO. It is lacking in some areas but I have high expectations that Bioware will correct those in time....providing EA does not muck it up any further.
Ensquire Posted July 28, 2012 Author Posted July 28, 2012 (edited) here a link to support that PC games sales are actually on the rise for 2010, 2011 & 2012 http://www.forbes.com/sites/insertcoin/2012/07/09/diablo-3-spearheads-230-jump-in-pc-game-sales/ http://www.rockpapershotgun.com/2011/03/01/pc-is-strong-pc-games-revenue-up-20/ That the only reason console sale are down is because this generations console is nearing the end of its life cycle and that this trend in sales has been true to form for the past four generation of consoles, here's Ubisoft president stating as much. I http://ca.ign.com/articles/2012/07/23/ubisoft-industry-penalised-by-long-console-cycle I'll just re post this as a counter that the industry is suffering, the reason IP's are suffering is companies are afraid of introducing new IP's in this generations hardware, whether that smart or short sighted is anyone guess Edited July 28, 2012 by Ensquire
Aricus Posted July 28, 2012 Posted July 28, 2012 Re: the comment on BF3. Not hardly. Recently EA/Dice released Premium service to BF3 fans. It had sold slightly over 800,000 units in the first month. It is still selling. Premium is to bring 4 new map packs and many new features to BF3 which are highly anticipated. Plus, the BF franchise is still one of EA's best cash cows. So much so that EA/Dice are planning on releasing BF4 sometime late in 2013. Now, I also call into question some of the other things said in the article but I am NOT a defender of EA's current CEO. I think he is (being diplomatic) not good for gaming and gamers. EA has made some very bad choices...(SWTOR NOT being one of them...IMHO) including the fact that they do not use strict quality control on games and release too many defective or incomplete games. I give SWTOR a slight pass in that department only because it is an MMO and many many MMO's go through intial launch growing pains only to recover within the first year. SWTOR is a good MMO. It is lacking in some areas but I have high expectations that Bioware will correct those in time....providing EA does not muck it up any further. Sorry but MMOs don't recover once they go down the path of decline. Name an MMO that has successfully recovered it's lost subs? There is none. This game might be fixed but it'll only be fixed for a small niche group. Once it loses 1 million subs it won't regain it again.
Taorus Posted July 28, 2012 Posted July 28, 2012 WoW....talk about a stretch. So...Some random blogger on Forbes, Thinks a tiny portion of EA's portfolio is whats bringing down EA? This is a troll post and a half...fail one at that too. A random Blogger is not Forbes
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