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Op Ed

Clifford Unchained - Nickels, dimes, and quarters. By Cliff Bleszinski.
If you donít like EA, donít buy their games. If you donít like their microtransactions, donít spend money on them. Itís that simple. EA has many smart people working for them (Hi, Frank, JR, and Patrick!) and they wouldnít attempt these things if they didnít work. Turns out, they do. I assure you there are teams of analysts studying the numbers behind consumer behavior over there that are studying how you, the gamer, spends his hard earned cash.

If youíre currently raging about this on GAF, or on the IGN forums, or on Gamespot, guess what? Youíre the vocal minority. Your average guy that buys just Madden and GTA every year doesnít know, nor does he care. He has no problem throwing a few bucks more at a game because, hey, why not?

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73. Re: Op Ed Mar 3, 2013, 12:20 Beamer
 
Creston wrote on Mar 2, 2013, 19:57:
Beamer wrote on Mar 2, 2013, 14:28:
While it's possible to have a division lose money on paper, it is impossible to have an entire publicly held organization do so. Simply put, EA cannot cook the books without someone going to jail, or more likely, mysteriously dying before going to jail like with Enron and Worldcom.

They are not "cooking the books." These are completely legal loopholes that they are exploiting. I am not saying EA is like Enron and is literally stealing money. They are simply reporting things in a legally acceptable way so that they do not appear to be making a profit.

The idea that corporations can't do this anymore would make every CPA in the country laugh. It sure my brother-in-law laugh when I asked him about it, and he's in charge of his accounting firm.

Creston

But to what end, Creston? Why in the world would EA not want to be making money? Why?
No, seriously, why?

We all kjnow why movies don't - because too many people are in it for royalties. If a movie doesn't make a profit, then they do not have to pay those royalties.

But EA, as a whole? Why wouldn't it want to?

The fact that it hasn't has utterly tanked its stock price. Back in 2005 it was worth almost $70. It's $18 now, and that's because it reported a profit in 2012. In the years prior it just sunk and sunk. Now, if you're someone like Peter Moore, who owns about half a million shares, that's 25 million dollars less than he should have.

Their long-term debt is also tied to their stock price. Acquisitions they make are pegged to it. Avoiding being acquired is pegged to it.

Here's EAs net income from 2002-2011 (it was positive in 2012)
102M

317M

577M

504M

236M

76.0M

-454M

-1.09B

-677M

-276M

These losses are a recent thing, it's tanked the stock price, and no one is sitting around planning this or happy about it. It's a very bad thing and it's cost many jobs.
 
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