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71. Re: Dead Space 4 Cancelled? Mar 5, 2013, 17:37 Creston
 
Beamer wrote on Mar 5, 2013, 16:58:
You're throwing out a conspiracy theory here that does not add up.

It's not a conspiracy theory. You're just ignoring the very thing you yourself said. EA believes that massive marketing leads to massive sales. Even you somehow believe that. At the same time, marketing expenses can be deducted (and thus lead to lower tax rates, lower dividends, etc.)

So they spend heavily on marketing because they can deduct it. In their mind, they spend a dollar on marketing, said dollar increases sales, and thus revenue, AND they get to deduct it! It's like double jeopardy!

Spending on deductable expenses is like crack for corporations. Both here, in Europe, really everywhere the world over.

If EA took that 75% marketing spend, and would lower it to 10%, and make a game that their players actually really want to play, who knows, maybe they'd start actually making money again. So much money that even after all their legally-approved write-off shenanigans, they'd still have a black line on their balance sheet.

Then again, millions of people pre-ordered SimCity, so that'll never happen.

Creston

 
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