Ex-EA Exec: "EA is in the Wrong Business"

Bizpunk, a blog by former Electronic Arts executive vice president of mobile and online Mitch Lasky, is highly critical of EA 's business dealings in several areas, notably the transition to a digitally distributed future, saying, "EA is in the wrong business, with the wrong cost structure and the wrong team, but somehow they seem to think that it is going to be a smooth, two-year transition from packaged goods to digital." Lasky, a partner at tech investment firm Benchmark Capital, recounts outlining a plan to cut costs and prepare for a games-as-services future and being told by EA execs at the time, "they literally couldn't imagine going to Wall Street with a message of increased profitability rather than top-line revenue growth." He describes his take on the current state of EA's business: "The old EA model was a basically a three-legged stool: 1) a profitable, recurring sports business (Madden, FIFA); 2) franchise games that produced big hits on a less frequent basis (The Sims, Need for Speed, Command & Conquer); and 3) a collection of digital assets (e.g.: Pogo & JAMDAT, and now Playfish) and distribution/partnership titles (e.g.: Rock Band & Left 4 Dead). Of those, the only stool leg left intact is the third one. Without the digital assets and the EA Distribution titles, they'd be in even more serious hot water." Thanks Gamasutra.
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Re: Ex-EA Exec:
Jan 18, 2010, 19:28
12.
Re: Ex-EA Exec: Jan 18, 2010, 19:28
Jan 18, 2010, 19:28
 
Verno wrote on Jan 14, 2010, 10:30:
Dragon Age wasn't nearing completion in 2007, nice try. You act like EA paying $860M for a studio and not ruining it isn't a unique event. I'll give credit where it's due instead of slagging for the sake of it like you do.

EA has done many harmful and stupid things related to the industry but their acquisition of Bioware hasn't really affected the quality of Bioware games. You didn't even address them actually releasing new IP for a change by the way. Dead Space and Mirror's Edge were underperformers but still excellent titles and they're even getting sequels despite very disappointing sales.

Instead of blanket hating on a company, you should try weighing their actions individually like adults do.

EA bought two companies for $850 million. Don't forget that they got Pandemic Studios in that deal, too. Huh, whatever happened to Pandemic, anyways?
11.
 
Re: Ex-EA Exec:
Jan 14, 2010, 11:22
11.
Re: Ex-EA Exec: Jan 14, 2010, 11:22
Jan 14, 2010, 11:22
 
RTSNut wrote on Jan 14, 2010, 00:34:
Is this the same Mitch Lasky that saved Activision 15 years ago?

"Mitch Lasky" is a name that sounds like it belongs in one of the Airplane movies. I'm not sure why, it just does...
10.
 
Re: Ex-EA Exec:
Jan 14, 2010, 10:30
10.
Re: Ex-EA Exec: Jan 14, 2010, 10:30
Jan 14, 2010, 10:30
 
Dragon Age wasn't nearing completion in 2007, nice try. You act like EA paying $860M for a studio and not ruining it isn't a unique event. I'll give credit where it's due instead of slagging for the sake of it like you do.

EA has done many harmful and stupid things related to the industry but their acquisition of Bioware hasn't really affected the quality of Bioware games. You didn't even address them actually releasing new IP for a change by the way. Dead Space and Mirror's Edge were underperformers but still excellent titles and they're even getting sequels despite very disappointing sales.

Instead of blanket hating on a company, you should try weighing their actions individually like adults do.

This comment was edited on Jan 14, 2010, 10:33.
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9.
 
Re: Ex-EA Exec: "EA is in the Wrong Business"
Jan 14, 2010, 10:26
9.
Re: Ex-EA Exec: "EA is in the Wrong Business" Jan 14, 2010, 10:26
Jan 14, 2010, 10:26
 
Amazing Verno how you give credit to ea for DA and ME, which were already near completion when ea made a hostile takeover of Bioware.

Nice try.
Scorpio Slasher: ... What about you boy, what do hate?
Marcus: ... Bullies. Tiny d*ck egotists who hurt people for no reason, make people lock their doors at night. People who make general existence worse, people like you.
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8.
 
Re: Ex-EA Exec:
Jan 14, 2010, 10:06
8.
Re: Ex-EA Exec: Jan 14, 2010, 10:06
Jan 14, 2010, 10:06
 
Verno wrote on Jan 14, 2010, 09:00:
Yeah who needs games those crappy EA published titles like Mass Effect, Dead Space, Dragon Age, Mirror's Edge and so on? Rolleyes
I don't "need" them. They are just games. And ... there are PLENTY good games to play, even for me choosy bastard. Games i still want to play (because the day has only 24 h) or games i want to play again, because they are just full of fun and joy. If EA, heck, if all majors disappear over night without a trace, and are never coming back, i still have games to play for a decade. And when i'm done, there are new companies, lots of indies.

Really, i don't need EA. Not a fuckin bit.
7.
 
Re: Ex-EA Exec:
Jan 14, 2010, 09:26
7.
Re: Ex-EA Exec: Jan 14, 2010, 09:26
Jan 14, 2010, 09:26
 
does software as a service mean that I don't really own it but sort of rent it ??
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6.
 
Re: Ex-EA Exec: "EA is in the Wrong Business"
Jan 14, 2010, 09:00
6.
Re: Ex-EA Exec: "EA is in the Wrong Business" Jan 14, 2010, 09:00
Jan 14, 2010, 09:00
 
Yeah who needs games those crappy EA published titles like Mass Effect, Dead Space, Dragon Age, Mirror's Edge and so on? Rolleyes
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5.
 
Re: Ex-EA Exec: "EA is in the Wrong Business"
Jan 14, 2010, 03:55
5.
Re: Ex-EA Exec: "EA is in the Wrong Business" Jan 14, 2010, 03:55
Jan 14, 2010, 03:55
 
Shocking, ea a failure at business as well as incompetent failure at game design, development and support.
Scorpio Slasher: ... What about you boy, what do hate?
Marcus: ... Bullies. Tiny d*ck egotists who hurt people for no reason, make people lock their doors at night. People who make general existence worse, people like you.
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4.
 
Re: Ex-EA Exec:
Jan 14, 2010, 02:13
4.
Re: Ex-EA Exec: Jan 14, 2010, 02:13
Jan 14, 2010, 02:13
 
Well, it only seems inevitable that they would try it: hell, it's worked for the IT industry apparently.
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Re: Ex-EA Exec:
Jan 14, 2010, 00:34
3.
Re: Ex-EA Exec: Jan 14, 2010, 00:34
Jan 14, 2010, 00:34
 
Is this the same Mitch Lasky that saved Activision 15 years ago?
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Re: Ex-EA Exec:
Jan 13, 2010, 23:23
2.
Re: Ex-EA Exec: Jan 13, 2010, 23:23
Jan 13, 2010, 23:23
 
Game as a service is the more general software as a service. Software is not a fucking service and I will never agree to software a service. I know why some developers/publishers want the software to be a service because of the guaranteed revenue stream.
1.
 
Re: Ex-EA Exec: "EA is in the Wrong Business"
Jan 13, 2010, 23:13
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Re: Ex-EA Exec: "EA is in the Wrong Business" Jan 13, 2010, 23:13
Jan 13, 2010, 23:13
 
Welcome to the gaming industry... Every big publisher is like that, with the only difference being who has the big game name of the moment.

And how many of us here would go for a games as services future if that's what EA put on the table? That might be one of the most unappealing suggestions to transform the industry that I've ever heard.
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