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Quarterly Producer Letter for Q2 2024 ×

EA stockholder perspective right here


brianmack

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... Yah I have EA papers, not bundles of it, but enough to care. I see this f2p move a last ditch effort to salvage this investment. I am only impressed with roi this stock gives over time, not sub numbers. If it was self sustaining and giving something you wouldnt tinker with it much. But, you are revamping the sub model here. And in two quarters when you layout how awesome it is to have a 15% increase, we will know that it's a hollow number. Increases in participation without cash attached is worthless to me. Sure, you may pick up some buyers from this collection of browsers, but youre bleeding faster than you are signing up subs.

 

I applaud your courage to try new things, but you are simply masking/ignoring the real issues. You have people in leadership with a strategic vision that is failing. Past subs are telling you this, so are current subs (fanbois cut quotes here, so u can rage how awesome things are). You have these people on too long a leash, cut them already, they are losing. What more proof do you need that it aint working with these two in charge? Youre running out of excuses and marketing gimmiks to try to convince us everything is fine. 2500 jobs are cut to turn that bottom line number black again, do you get it yet? It's flawed vision, get new leadership, hell take a chance on some intern at this point, cant get any worse.

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I gotta call BS. TOR is such a small part of the EA picture that I find it hard to believe that it is what you are concerned with. EA is coming into a huge sports season with their insanely popular sports franchises that sell millions of copies every year. Not to mention AAA titles coming in the holiday.

 

By the time this game hits F2P, TOR will be an afterthought to shareholders. It's turn to sell stocks is over.

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Thats my point, mother EA needs to show some stones and terminate the problem leadership in its baby project here. Theres still money to be made and a title to salvage, just shocked bw-swtor hasnt cut the head off the snake yet. Seriously, is noone asking "whos in charge of this thing?"
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prreeeetty sure EA neither reads these boards, nor really cares at all...at the end of the day , if bioware fails , they will milk whateve they can , liquidate their bioware assests/sell engines/ips , and fire whoever is left and move on to buy another company to turn it into their next cash cow/scapegoat

 

i agree with what you are saying, in fact, ive even thought about this myself a couple of times, but the fact remains , at this point in time, EA is in retreat mode and they are salvaging everything they can on their way out , thats what i think at least...

 

PS:i agree about management, the thread about jeff hickman pretty much speaks for itself, not to mention , riticellos comments on the f2p model make me wanna puke in my mouth, heck

 

this is WAR all over again...

Edited by LaVolpex
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Thats my point, mother EA needs to show some stones and terminate the problem leadership in its baby project here. Theres still money to be made and a title to salvage, just shocked bw-swtor hasnt cut the head off the snake yet. Seriously, is noone asking "whos in charge of this thing?"

 

Rich Vogel, SWTOR Executive Producer is no longer with Bioware.

 

source:

http://www.gamasutra.com/view/news/174300/SWTORs_executive_producer_leaves_BioWare_amid_layoff_reports.php

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I gotta call BS. TOR is such a small part of the EA picture that I find it hard to believe that it is what you are concerned with. EA is coming into a huge sports season with their insanely popular sports franchises that sell millions of copies every year. Not to mention AAA titles coming in the holiday.

 

By the time this game hits F2P, TOR will be an afterthought to shareholders. It's turn to sell stocks is over.

 

This. Even though I am disappointed with SWTOR as well, but the OP is either lying or the most gullible stockholder ever.

Didn't he hear the earnings call? A normal stockholder would consider all the games in the EA portfolio and know that even though SWTOR is a failure, the losses are offset by BF3 Premium gains.

Apart from the usual sports offerings, there are big EA games coming such as Deadspace 3, Medal of Honor and BF4.

 

A real investor considers the entire portfolio, and not myopically focus on a single game.

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While it's important to keep everything in perspective, I think some of the posters here are underestimating the intention of having SWTOR as a cash cow to provide EA with a predictable (i.e. subscriptions) income over the long term without going through up and down development cycles.

 

In this regard, BioWare and EA has clearly failed and F2P is an attempt to salvage the game's long term profits.

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... Yah I have EA papers, not bundles of it, but enough to care. I see this f2p move a last ditch effort to salvage this investment. I am only impressed with roi this stock gives over time, not sub numbers. If it was self sustaining and giving something you wouldnt tinker with it much. But, you are revamping the sub model here. And in two quarters when you layout how awesome it is to have a 15% increase, we will know that it's a hollow number. Increases in participation without cash attached is worthless to me. Sure, you may pick up some buyers from this collection of browsers, but youre bleeding faster than you are signing up subs.

 

I applaud your courage to try new things, but you are simply masking/ignoring the real issues. You have people in leadership with a strategic vision that is failing. Past subs are telling you this, so are current subs (fanbois cut quotes here, so u can rage how awesome things are). You have these people on too long a leash, cut them already, they are losing. What more proof do you need that it aint working with these two in charge? Youre running out of excuses and marketing gimmiks to try to convince us everything is fine. 2500 jobs are cut to turn that bottom line number black again, do you get it yet? It's flawed vision, get new leadership, hell take a chance on some intern at this point, cant get any worse.

 

 

Trust me, EA doesn't care about your 3 shares.

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Trust me, EA doesn't care about your 3 shares.

 

And before he wrote this he thought "this is gonna be an epic burn on the OP and everyone will like me and stop making fun of my clothes and morbid obesity, yep this post will turn things around, look out world"

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While it's important to keep everything in perspective, I think some of the posters here are underestimating the intention of having SWTOR as a cash cow to provide EA with a predictable (i.e. subscriptions) income over the long term without going through up and down development cycles.

 

In this regard, BioWare and EA has clearly failed and F2P is an attempt to salvage the game's long term profits.

 

At 1M subs, Net of $15M per quarter (after operations expenses) is hardly cash cow for a company the size of EA. And yes friend, that's an accurate estimate, and is actually less after the most recent sub numbers reported.

 

TL;DR..... it's mice nutz in the EA basket of nutz.

 

They are happy to collect the revenue, but it's not something they lose sleep over at EA HQ. Bioware Division on the other hand, it's a significant % of their contribution to EA. So for the division it's Elephant nutz.

Edited by Andryah
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... Yah I have EA papers, not bundles of it, but enough to care. I see this f2p move a last ditch effort to salvage this investment. I am only impressed with roi this stock gives over time, not sub numbers. If it was self sustaining and giving something you wouldnt tinker with it much. But, you are revamping the sub model here. And in two quarters when you layout how awesome it is to have a 15% increase, we will know that it's a hollow number. Increases in participation without cash attached is worthless to me. Sure, you may pick up some buyers from this collection of browsers, but youre bleeding faster than you are signing up subs.

 

I applaud your courage to try new things, but you are simply masking/ignoring the real issues. You have people in leadership with a strategic vision that is failing. Past subs are telling you this, so are current subs (fanbois cut quotes here, so u can rage how awesome things are). You have these people on too long a leash, cut them already, they are losing. What more proof do you need that it aint working with these two in charge? Youre running out of excuses and marketing gimmiks to try to convince us everything is fine. 2500 jobs are cut to turn that bottom line number black again, do you get it yet? It's flawed vision, get new leadership, hell take a chance on some intern at this point, cant get any worse.

 

Heard they were losing the NFL and NCAA franchise for a couple years. Better sell that stuff, dude.

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This. Even though I am disappointed with SWTOR as well, but the OP is either lying or the most gullible stockholder ever.

Didn't he hear the earnings call? A normal stockholder would consider all the games in the EA portfolio and know that even though SWTOR is a failure, the losses are offset by BF3 Premium gains.

Apart from the usual sports offerings, there are big EA games coming such as Deadspace 3, Medal of Honor and BF4.

 

A real investor considers the entire portfolio, and not myopically focus on a single game.

 

QFT. Just another angry gamer with no clue as to how the market works.

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At 1M subs, Net of $15M per quarter (after operations expenses) is hardly cash cow for a company the size of EA. And yes friend, that's an accurate estimate, and is actually less after the most recent sub numbers reported.

 

TL;DR..... it's mice nutz in the EA basket of nutz.

 

They are happy to collect the revenue, but it's not something they lose sleep over at EA HQ. Bioware Division on the other hand, it's a significant % of their contribution to EA. So for the division it's Elephant nutz.

 

Dead on. EA corporate doesn't give 2 ***** about BW or it's employees. I am glad to see that the leadership of BW has been changed, simply for the sake of the game. People gloss over the roughly $45M in revenue EA probably made just from sales of the game. But depending on who's estimate of the investment made in this game, EA may have already past breakeven on this game. They'll never admit to it, if they can avoid it, because that means taxes to pay. But depending on how long it survives as F2P, this title could still become a steady revenue stream for EA. But even if it does or does not, it still won't be a driving force behind it's stock price.

 

For 12 months the NYSE has been swerving around like an angry drunk, and the NASDAQ will always be the trailer being pulled behind him. Anyone with an investment portfolio already knows about the volatile nature of tech stocks. It's not surprising at all what has happened to EA share prices in the last few months. This happens during every presidential election cycle. And it will keep going until after the Christmas shopping season is over.

 

 

Stockholders are morons.

 

Get a real job.

please go to school

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EA needed to take a Square approach on this... like Square are doing with FF14, EA need to revamp the game and almost re-release it. The problem here is that it would involve significant cost with no guarantee of reward. So they took the cheap, lazy option and went f2p. Still, we can all have a good laugh at EA for all of their hype and how they're taking on WoW yet this MMO has become the biggest mmo failure in history when you take everything into account. Funnier still, seems fairly obvious the layoffs haven't got to the root of the problem at all and the people who should be held accountable for this disaster are still probably a bunch of overpaid douches on the EA payroll bossing around people who are far more talented than they'll ever be.
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At 1M subs, Net of $15M per quarter (after operations expenses) is hardly cash cow for a company the size of EA. And yes friend, that's an accurate estimate, and is actually less after the most recent sub numbers reported.

 

TL;DR..... it's mice nutz in the EA basket of nutz.

 

They are happy to collect the revenue, but it's not something they lose sleep over at EA HQ. Bioware Division on the other hand, it's a significant % of their contribution to EA. So for the division it's Elephant nutz.

 

Way to completely miss my point.

 

SWTOR was intended to be the cash cow that can be milked on the long run on par with WoW. They have repeatedly stated SWTOR would be a WoW's level. When they failed to achieve this, it will of course affect EA stock prices due to a loss of investor confidence.

 

I never said it would be the end of the world for EA since I've acknowledged they got different things going for them, but it's also silly for people to underestimate how much EA had riding on SWTOR because, and let me say it again slowly for you:

 

SWTOR was meant to be a huge cash cow that can provide long term predictable profits the way WoW does for Activision.

Edited by thebigdoubleu
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SWTOR was meant to be a huge cash cow that can provide long term predictable profits the way WoW does for Activision.

 

And it should have been apparent months ago to everyone with any capacity for analysis that the idea of a cash cow was not going to happen.

 

Pause for dull surprise.

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And before he wrote this he thought "this is gonna be an epic burn on the OP and everyone will like me and stop making fun of my clothes and morbid obesity, yep this post will turn things around, look out world"

 

good one how old are you again?

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i wonder if your a real shareholder, i can't help think because EA is such a huge company, a real EA shareholder would care more about EA as a whole, rather than one branch. with micro transactions on there sports brands, there new venture into the digital download market, and some big titles planned for later this year.

 

i think a real shareholder would be more confident about the future of there shares and not so much worried about TOR, i could understand if TOR was a make or break it game for EA, but the company is huge and TOR is one game, or i could understand if you had BW shares and not EA shares.

 

but EA is hardly on the ropes over this

Edited by grandmthethird
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