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2nd Quarter results - down another 300,000+


NilanVoid

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Re-coup investment? Just an issue with your language as the game would have made close to $100 million just in the box sales over the first 3-months. Then some 7 months of subscriptions?

 

The question is not whether the game will re-coup investment costs, the question is whether it is profitable enough to justify the resources dedicated to it and I have no idea how to estimate that. Internally, EA has indicated that 500,000 makes the game "worth it" and "north of 1,000,000" makes is "very profitable".

 

We are somewhere between 500,000 (that's $7.5 million a month; $90 million a year) and 1,000,000 ($15 million a month; $180,000,000 year).

 

I'm not saying those are good numbers to EA and what they were expecting, but lets inject some reality into this discussion.

 

- Arcada

 

And how much of those box sales went to wal-mart, best buy, etc.? And Lucas gets a cut of revenues (30% I believe). Then 3 and 6 month subs pay less than 15/month..

 

I'm sure they haven't lost a fortune yet but I don't know that they've done much more than break even either.

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If they had 750-800 thousand, don't you think they would have said something like "between 750K and 1 million," or if it is closer to 800K "We have under a million, but well over 750K?"

 

LOL.. actally it's better for them the way they stated it. That way, next quarter they can say exactly the same thing (as long as it's still legally accurate) and you won't be able to claim subs are down again in Q3. Oh, wait... you will do that no matter what won't you, regardless? :D

 

By issuing a wide range, they position the subscription discussion off the table next time unless they specifically want to talk about it. Then the quarter after that, they are in dual access model, and subs are no longer a relevant discussion anyways.

 

EA just outmanoeuvred you Blattan. ;)

Edited by Andryah
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The range mentioned was between "under a million" and "well over 500,000". So, maybe 750-800 thousand?

 

They will lose a chunk of subs after this month though. All the original 6-month subs run out(renew) this month.

 

Accounts currently actively playing the game, more like 400,000.

 

I sub every three months and will stay subbed who are you to say all these six monthers will be leaving...

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I sub every three months and will stay subbed who are you to say all these six monthers will be leaving...

 

I see what you did there. You just interupted a perfectly good hyperbolic biach session. :D

 

It is kind of funny to see some people pontificate about when and how you will or will not play a game of your choosing isn't it? I wonder what his position is on you enjoying a cup of coffee as you play? He will probably claim you're going to get kidney stones. :p

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I'm sure they haven't lost a fortune yet but I don't know that they've done much more than break even either.

 

I think that is a reasonable statement. Unfortunately impossible for us to resolve since we don't know exactly how much it cost and continues to cost to run on a monthly basis.

 

It is extremely unlikely that EA will "lose" money on this. That doesn't mean the game is a success nor that it will survive. A company like EA is like Fox; it doesn't want programming that "gets buy", it wants programming that blows away the competition and makes big dollars.

 

It's the entertainment business and all down to opportunity costs (what other projects EA would rather invest in).

 

Amusing to me only in that out of the MMOs I've played, TOR by far has the biggest subscriber base and only one of those other ones got cancelled (after being around for 3-years).

 

- Arcada

Edited by Nydus
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I see what you did there. You just interupted a perfectly good hyperbolic biach session. :D

 

It is kind of funny to see some people pontificate about when and how you will or will not play a game of your choosing isn't it? I wonder what his position is on you enjoying a cup of coffee as you play? He will probably claim you're going to get kidney stones. :p

 

bw did that for you with f2p if u think nothing will change as it is for sub users then lol @ u

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Attempting the following based on known numbers although the caveat is that I have no proof of the true numbers:

 

Assuming the much bandied about initial outlay of $300 million for initial development minus the initial box sales ( 1.7 million units sold - let's use $70/box = $119m ) and monthly subscriptions (1.7 million subs x $15 x 3 mo = $76.5m, plus 1.3 million subs x $15 x 3 months = $58.5 million ) for a net revenue of $254 million. (Don't forget the free month of play). That still leaves $46 million to re-coupe.

 

However, for the sake of argument let's agree that EA has broke even ( or is now making a profit ) at this point via additional box sales or continued subscriptions. I agree that EA is now eyeing sustainability profit vs pumping more cash into development. EA is looking at "maintaining" the game now. However, as a gamer, I'm not convinced that EA's philosophy coincides with mine. And maybe it's this view that many players are frustrated with - the gaming fantasy versus the business reality...

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if u think nothing will change as it is for sub users then lol @ u

 

You are right. Things will get BETTER because they earn incremental revenue from a large pile of people who would not pay a sub but will gobble Cartel Coins like cake. More revenue means they can reinvest more into the game. Plenty of precedent in the modern era of MMOs to support this too.

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You are right. Things will get BETTER because they earn incremental revenue from a large pile of people who would not pay a sub but will gobble Cartel Coins like cake. More revenue means they can reinvest more into the game. Plenty of precedent in the modern era of MMOs to support this too.

 

man i wish i ran a company with fanboi's like u buying into any crap i sell u :)

 

say your sub pays for like 100 coins a month/week but that uber shinny mask is 1400 points so u cough up more cash than the f2p crowd just wanting that shiny mask

Edited by belizar
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as a gamer, I'm not convinced that EA's philosophy coincides with mine.

 

EA philosophy: like all publicly traded companies, is to maximize shareholder return while returning reasonable value to customers in return for services. And they must do so in the context of a very broad customer base that probably could not even agree on what day of the week it is in a forum.

 

Gamer philosophy: I want the game my way, the way I want it, and nao.

 

Wait,...... so are you saying that they do not consult with you before they make major business decisions about their MMO property and followed their philosophy instead of yours?? :)

Edited by Andryah
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man i wish i ran a company with fanboi's like u buying into any crap i sell u :)

 

say your sub pays for like 100 coins a month/week but that uber shinny mask is 1400 points so u cough up more cash than the f2p crowd just wanting that shiny mask

 

Note: Speculation in the absence of fact is the downfall of all hypebole. ;)

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The F2P model itself can work - just look at the poster child - Zynga. It has millions of players and am quite sure thousands of players purchasing from the cash shop each month. So there is definitely money to be made. EA cannot afford to keep this game going while it continues losing subs without some other revenue stream.
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Even a blind squirrel finds a nut every so often.:eek:

 

guess ill find 2 nuts then as this is ea we talking about and if u think they will hand u enough points on a sub to get a shiny item from cash shop you will be disapointed kinda like yesterday F2P ( swtor will nvr do it )

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guess ill find 2 nuts then as this is ea we talking about and if u think they will hand u enough points on a sub to get a shiny item from cash shop you will be disapointed kinda like yesterday F2P ( swtor will nvr do it )

 

I have never said SWTOR wasn't going F2P...F2P didn't scare me. And I have no problem...either working or paying for something I want.:D

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I have never said SWTOR wasn't going F2P...F2P didn't scare me. And I have no problem...either working or paying for something I want.:D

 

i didnt think we were talking gw2, can u earn these coins in game in swtor ? if u can then having a sub is even more pointless

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i didnt think we were talking gw2, can u earn these coins in game in swtor ? if u can then having a sub is even more pointless

 

Cartel Coins will be the new in-game virtual currency used for the Cartel Market. Cartel Coins may be used to purchase specialty items that allow you to customize and equip your character cosmetically. With Cartel Coins you will be able to purchase in-game items including customizable gear and convenience features that will enhance the game play experience. Cartel Coins will also be available for purchase from our website in various price packs.

 

I go to work...I earn money....I spend such money I worked for on...wait for it.... what ever I choose...:eek: If that happens to be said Cartel Coins so be it. Its what happens when you grow up and move out of mommy and daddys house and get a job.

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Cartel Coins will be the new in-game virtual currency used for the Cartel Market. Cartel Coins may be used to purchase specialty items that allow you to customize and equip your character cosmetically. With Cartel Coins you will be able to purchase in-game items including customizable gear and convenience features that will enhance the game play experience. Cartel Coins will also be available for purchase from our website in various price packs.

 

I go to work...I earn money....I spend such money I worked for on...wait for it.... what ever I choose...:eek: If that happens to be said Cartel Coins so be it. Its what happens when you grow up and move out of mommy and daddys house and get a job.

 

really really u went with the mom and dads house lol sad

so u just said ontop of paying 15 £ a month u would pay more for vanity items man ea must be laughing there asses off or crying they didnt think of this sooner

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