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etc., etc.

3. Re: etc., etc. Jul 19, 2012, 21:41 killer_roach
Fantaz wrote on Jul 19, 2012, 21:24:
They say EA is in decline because the new console generation is taking too long to come or be announced, but The Old Republic is a PC only game?

TOR is the biggest drag on their earnings at present, and I don't see it getting any better. They overreached, plain and simple, and brought in a developer who didn't know diddly about making an MMO to spearhead a project whose overall budget is likely (once licensing costs are factored in) in the mid-nine figure range.

Most of the other issues they list are manageable (except maybe #5, but I think they can get a return out of PopCap even without social gaming), but TOR really was a major misstep that continues to foul up EA's balance sheets, and there's no end in sight to it.

Overall, though, most of those issues could be rolled up into an additional point:

#6 - They're continuing to fight the last war

EA is learning that risk aversion can itself carry risks, especially in a cyclical business sector, and they have not particularly mastered the art of diversification (as, for instance, Activision has, combining successful properties with a handful of additional investments both in suspected growth areas and counter-cyclical plays). Overall, this doesn't seem to be dooming EA in the long run, but it also means that they're inadvertently limiting profit potential by focusing on jumping into former growth areas that are currently plateauing. This has resulted in EA being, from a personnel and revenue standpoint, a juggernaut in the games industry, but due to rather meager earnings are at a market cap where other industry players have to be eyeing EA as a potential acquisition target.
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    Date Subject Author
  1. Jul 19, 21:24 Re: etc., etc. Fantaz
>> 3. Jul 19, 21:41  Re: etc., etc. killer_roach
  2. Jul 19, 21:40 Re: etc., etc. Cutter
  4. Jul 19, 22:18 Re: etc., etc. Veterator
  5. Jul 19, 22:46  Re: etc., etc. killer_roach
  6. Jul 19, 23:18   Re: etc., etc. Axis
  7. Jul 19, 23:20    Re: etc., etc. Quboid
  8. Jul 19, 23:42     Re: etc., etc. Prez
  9. Jul 20, 00:35      Re: etc., etc. Matshock
  10. Jul 20, 00:41      are you not entertained? space captain
  11. Jul 20, 01:47       Re: are you not entertained? Prez
  12. Jul 20, 04:03        Re: are you not entertained? InBlack
  14. Jul 20, 05:28        Re: are you not entertained? Orogogus
  15. Jul 20, 06:25         Re: are you not entertained? Prez
  13. Jul 20, 04:19   Re: etc., etc. J
  16. Jul 20, 09:05 Re: etc., etc. space captain
  18. Jul 20, 09:30  Re: etc., etc. Prez
  19. Jul 20, 09:43   Re: etc., etc. space captain
  21. Jul 20, 10:07   Re: etc., etc. InBlack
  17. Jul 20, 09:10 Re: etc., etc. Cutter
  20. Jul 20, 09:55 Re: etc., etc. Verno
  23. Jul 20, 10:32  Re: etc., etc. Eirikrautha
  22. Jul 20, 10:28 Re: etc., etc. space captain
  24. Jul 20, 10:45  Re: etc., etc. Eirikrautha
  25. Jul 20, 10:55   Re: etc., etc. InBlack
  27. Jul 20, 11:44    Re: etc., etc. Eirikrautha
  26. Jul 20, 11:40   Re: etc., etc. space captain
  28. Jul 20, 12:01    Re: etc., etc. Eirikrautha
  29. Jul 20, 12:10 nevermore and forevermore space captain


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