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37. Re: More Big Picture Details Mar 2, 2013, 11:49 Creston
 
HorrorScope wrote on Mar 2, 2013, 11:13:
If EA is so right about micro-transactions, why can't the company make a profit? To some, their consistent losses would state they are wrong all the time about something, reminded every quarter of that to.

I work at a large company to, I'd shutter to think what we would be slashing if we actually lost a lot of money instead of made a lot. We're already squeezed and making more profit per quarter than ever.

How do companies stay in business losing 10's, 100's of millions a quarter? There are quite a number of them, I never really got it. Do they just pile up debt like countries? JCP lost 427 million last quarter, that is probably like 10 years worth of profits in good times for them, so why even bother? GM rec'd like 20 billion a couple years ago, how can your books be that far off without lying for decades about your financials?

They just lose money on paper. They don't actually lose money, they would have been out of busy for a long time by now. No company the size of EA can lose money for ten years straight and still keep running. (You can if you get REALLY big, like GM. GM CAN do so, because they just cry for more money when it runs out. American Airlines is exactly the same.)

It's called Creative Accounting, or "Arthur Andersen 101." By not making a profit, they don't have to pay taxes, AND they don't have to pay dividends.

Realistically the IRS should do something about this kind of horseshit, but the government gets too much grease money to make corporations pay their fair share. Much easier to tax the average citizen more to make up for the difference.

Creston
 
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