is EA dying?

[Daehawk]

EA stock continues to sink today, as of this writing it's down another 14% after losing over $9 dollars a share with another hour and a half til market close. Yesterday, the stock fell 12%. More from Marketwatch who think that it's a broader problem than just hardware shortages:

Some of that weakness was due to shortages of Microsoft's Xbox and Sony's PlayStation 2, the most popular consoles used to play video games. But Electronic Arts, which has long benefited from strong sales of popular sports games like "FIFA Soccer" and "NBA Live" and its "Sims" series, is feeling the heat from titles made by upstart rivals like Take-Two Interactive Software.
"Certain EA franchises have performed poorly and are showing signs of fatigue," wrote Bear Stearns analyst R. Glen Reid in a note to clients.

Update: EA closed down almost 17% at the end of the day

I cant see this as a bad thing.

[tjg_marantz]

Maybe others can get some licenses back

[hitbyambulance]

"Certain EA franchises have performed poorly and are showing signs of fatigue,"

ahhh! so that's what happens when you only make never-ending sequels!

[The Mad Hatter]

Some of that weakness was due to shortages of Microsoft's Xbox and Sony's PlayStation 2, the most popular consoles used to play video games. But Electronic Arts, which has long benefited from strong sales of popular sports games like "FIFA Soccer" and "NBA Live" and its "Sims" series, is feeling the heat from titles made by upstart rivals like Take-Two Interactive Software.
"Certain EA franchises have performed poorly and are showing signs of fatigue," wrote Bear Stearns analyst R. Glen Reid in a note to clients.

Which ones have performed poorly, I wonder? I know that the Sims Online was a flop and they keep reversing course on a sequel to UO, but didn't the Sims 2 sell like hotcakes?

[Ummagumma]

Maybe the console market will crash again, and all these developers will have to come running back to the PC market that made thier name in the first place.

Yes, revenge is a dish best served with fava beans, and a nice ciante. SLLLUUURRRPPP!

[Vinda-Lou]

The Avatar and Crusader (from No Remorse, duh) are chuckling evilly in their graves.

[The Mad Hatter]

The Avatar and Crusader (from No Remorse, duh) are chuckling evilly in their graves.

Richard Garriott borked the Ultima franchise, not EA. I've never understood why he always gets a pass and it's all blamed on the evil corporate empire.

[pr0ner]

I really don't think it is a result of the console market crashing. EA's problem is putting out a ton of games, a lot of which are less than stellar. And the stellar games they have put out lately they didn't develop (see Burnout 3). Plus, they tossed out a TON of cash for the NFL and ESPN licenses. That had to hurt the bottom line in a big way.

Mike

[Vinda-Lou]

The Avatar and Crusader (from No Remorse, duh) are chuckling evilly in their graves.

Richard Garriott borked the Ultima franchise, not EA. I've never understood why he always gets a pass and it's all blamed on the evil corporate empire.

I disagree. Sure he's ultimately responsible, no pun intended, but corporate pressure to turn it into what it was did not come from him. I still have an old PC Gamer with a huge article on U9 back before it became a Tomb Raider lookalike. I doubt he scrapped that whole idea and published what he thought was a masterpiece because he thought it was better. I could be wrong, but from what I remember it was EA putting the pressure on.

[EvilHomer3k]

Moving to GPCG.

[Jolor]

no pun intended,

none taken ...

[Peacedog]

Richard Garriott borked the Ultima franchise, not EA. I've never understood why he always gets a pass and it's all blamed on the evil corporate empire.

Well, Origin was on shakey financial ground when he sold to EA, wasn't it? It may be better to say "could: design games; could not: run a company" of Garriot. Origin's games were famous for pushing technological envelopes at the time, and they had some outrageous budgets (millions) back when people thought 6 figures was crazy.

I think that Origin's trouble started with that sale. Though there are a number of games that may not have existed without it. The sale was a mixed bag, clearly. Though if you were a UO fan, then you got pleasure out of it.

I disagree. Sure he's ultimately responsible, no pun intended, but corporate pressure to turn it into what it was did not come from him. I still have an old PC Gamer with a huge article on U9 back before it became a Tomb Raider lookalike. I doubt he scrapped that whole idea and published what he thought was a masterpiece because he thought it was better. I could be wrong, but from what I remember it was EA putting the pressure on.

The original U9 team was moved to work on UO if I recall correctly (and U9 had been underway for some time). I don't think EA had anything to do with that. Or if they did, ti was because they wanted UO done, not because they wanted something done (or not done) to U9.

When UO was done, they returned to the project and basically started over. And Garriot was at the center of it (eventually he even "got back under the hood" for the first time in years, as he put it).

There was corporate pressure (at least accoridng to the things I've read), but people are too quick to place too much blame on EA (who indeed do get blame), and often seem to overlook his role. Interviews of Garriot given during and since U:A make U:A look like the game he was trying to make. And I'm not talking about interviews given about U:A necessarily.

[tgb]

Iirc, the first bad omen resulting from the Origin sale to EA was not UIX, but Ultima VIII - aka "Sonic the Avatar".

[Peacedog]

Iirc, the first bad omen resulting from the Origin sale to EA was not UIX, but Ultima VIII - aka "Sonic the Avatar".

You aren't looking back far enough.

Ultima 7's combat was atrocious. Probably the worst combat I've ever encountered in a computer game. AFAIK, it reflected Garriot's ongoing philosophical shift (nor was it the only thing that did). I'm not saying U7 fortold U8. It pointed to the possibility U:A though, I think.

Also, the companies problems did start before EA. Without EA to step in and buy them, they may well have gone bellyup.

[Kobra]

We can only hope EA goes out of business. It would do wonders for this industry.

[Blackhawk]

You know, I'm not the type to wish death and destruction on anyone, but the gaming industry over the past few years has been in a narrow rut - they know that what they have isn't working, but are unable or unwilling to change it. I must admit that it might be beneficial to have part of the thing collapse - what is built from the pieces might very well be an improvement.

To quote Minsc, the industry "...is teeming with evil. Let's give it a good shake and see what falls out!"

[Peacedog]

EA the corporate entity, on the other hand, isn't really getting the job done. And they've been propped up for far too long by too long for a variety of reasons. EA the corproate entity going by the wayside is a natural and expected result because of this. I'm sorry that quite a few people will have to get a new job and possibly uproot (though I'm sure there are a couple of people here nd there that deserve to be out of a job). I won't morn EA's passing though.

[Kobra]

Well most people remember the "White Slavery" blog that was so famous last year. Written by an EA spouse about how EA is evil and abuses her Husband by forcing him to work 20 hour days.

EA's stock seems to have taken more of a correction this week, rather than indicating anything longterm. Alibeit it was a SERIOUS correction that probably cost the executives there hundreds of millions.

[Biyobi]

Kobra, that graph cracked me up because it looks like they had to add extra space on the bottom for the stock drop.

[Kobra]

Kobra, that graph cracked me up because it looks like they had to add extra space on the bottom for the stock drop.

LMFAO. I thought the same thing when I first saw it..

Lets hope it keeps dying, and EA is put out to pasture and all of the developers working there go off and form garage game companies.. Man, wouldn't that be somethin?

I hope the day comes.

[Faldarian]

Which ones have performed poorly, I wonder? I know that the Sims Online was a flop and they keep reversing course on a sequel to UO, but didn't the Sims 2 sell like hotcakes?

Need for Speed and NFL Street (or Blitz, I can't remember who's is which) were the ones I think they quoted specifically as underperforming.

[knob]

I don't think it'll happen, as nice as it would be.

Or if it does, atleast wait until after BF2 comes out. As much as I hate EA, Desert Combat provided me with many, many hours of fun.



(Sorry for not going into any sort of detail about why I don't think it'll happen. I'm pessimistic. And that's just my pessimism speaking)

[Peacedog]

I don't think it'll happen, as nice as it would be.

I wonder how the sports franchises are selling these days. And I wonder how the football landscape is going to look when their exclusive license kicks in.

[Beer Goggles]

I am hoping for some kind of Bell breakup of EA.