business model

EA Is Now Ironically Stuck With $60 ‘Battlefront 2’ And No Good Way To Re-Monetize It

forbes.com had an interesting article the other day, regarding how EA now is “stuck” with a game they can’t monetize as they want to. Here’s a summary of some of the points: Battlefront got backlash for having a $50 season pass and launching with barebones content. In Star Wars Battlefront 2 they changed the system and promised free DLC while using microtransactions and loot-boxes to monetize the game. Thanks to the backlash, they have removed microtransactions . . . but they’ve stated that they’re planning on reinstating them. If they do bring back microtransactions tied to progression then they will still face backlash. If they bring back lootboxes with only cosmetic items they’ll still draw ire. They’ve already enticed responses from multiple governments on the issues of lootboxes. That leaves them with really only one path forwards that won’t bring back a ton of backlash: Implementing an online store with microtransactions…

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Thinking about investing in the gaming industry? Here is an idea…

As the gaming industry races towards the $100 billion mark, more and more investors are considering a thematic investment in this booming sector. With practices such as casual gaming, online tournaments and eSports becoming increasingly popular, this sector could continue to grow at an exponential rate. Our InTheGame CopyFund gives you the opportunity to invest in this sector as a whole. Get a sneak peek on how the gaming industry has evolved from niche to mainstream, and how you can enjoy its combined growth with one click: Over the past few decades, the gaming industry went from being a $400 million market, occupied mainly by hardcore gamers, to a $99 billion beast that has everyone playing. Revenue sources for the industry have not only increased, but they have also become a lot more diverse, including in-game advertising, downloadable content purchasing and eSports sponsorship to name a few.Thematic investment in the…

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SWTOR Follow Up Analysis from EA’s FY16 Report

EA’s Annual Report in the form of its Form 10-K filed with the SEC this week talks a bit about SWTOR. Where does it stand now? Is it gaining more attention? swtoreconomics had some opinions to share on the matter and we think you’ll find it interesting too: “Star Wars: The Old Republic has received a lot of attention for its episodic story content cycle that began in October 2015 with the release of Knights of the Fallen Empire and opinions vary widely.  There is little doubt that the financial success or failure of this content cycle will be the largest factor in determining the future path of the game.  There is one paragraph that provides essentially all of the information in the entire 97 page report regarding Star Wars: The Old Republic specifically: For fiscal year 2016, service and other revenue was $1,899 million, primarily driven by FIFA Ultimate Team and Star Wars: The Old Republic. Service and other revenue for fiscal year 2016…

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Battlefront a “Unique” Beast of a Game Set to Sell 9-10 Million Copies

The upcoming Star Wars: Battlefront is one of the most hotly anticipated games of the last few years, and while the developer has apparently spared no resources in its creation, EA are expecting to cash in big time come November 17, when Battlefront is scheduled to be launched on PC, PlayStation 4 and Xbox One. According to CFO Blake Jorgensen, the sales estimate on the title is some 9-10 million copies, in EA’s 2016 fiscal year alone (which wraps up in March 2016). Obviously, the long-term potential for the title is much greater. Jorgensen also sought to allay potential fears tied to the actual launch of the product, fears which have been somewhat justified since the problem-ridden, botched launch of Battlefield 4. According to Jorgensen, EA have learned their lessons then, and there aren’t any such unpleasant surprises to be expected with Battlefront. In other Battlefront news: DICE have made…

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ROTHC is Download Only : EA Says Digital is 50% of Sales by 2015

Chief Operating Officer Peter Moore said digitally delivered video games may account for 50 percent of sales by 2015 as more players migrate to tablets and smartphones from consoles. (via Bloomberg). As more players are migrating to tablets and smartphones from PC and tablets, mobile seems to be the way to go which means digital downloads of games. While this might be the future for EA, some hardcore PC fans are not as excited about it. ROTHC is download only but some gamers really like getting a boxed set. Our current home office is surrounded by shelves of boxed Collector’s Editions of various games that my husband and I have purchased and played over the past 10 years or so. We love getting boxed sets, expansions and collector’s editions of the games we loved because they usually contain extras such as music, figurines, posters and more. Activision Blizzard Inc. (ATVI)…

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EA Believes “Freemium” is the Future

Are free to play games with paid upgrades the way of the future? What happened to the days when you go to the store, buy a game and then own it outright- all of it, the full versions of it to play as you choose? Some said that SWTOR would be the last pay to play MMORPG and even it has now gone F2P. Of course, many question how “free” it actually is when there are so many restrictions that you need to pay to unlock. This is what many call “freemium” gameplay models. And if you ask Electronic Arts, freemium is where it’s at. Gamespot tells us: The freemium business model is “where things are going,” according to Electronic Arts vice president of mobile and social studios Nick Earl. Speaking to GameSpot sister site CNET about the recent launch of Real Racing 3, the executive explained that the mobile…

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Ben Cousins Paying to Win Talks about F2P Game Model

In November 2009, EA hit the headlines when the BATTLEFIELD HEROES team made sweeping changes to their in-game economy and virtual item catalogue that many felt would completely destroy the game, as Ben Cousins explains in his “Paying to Win” talk that covers the free to play gaming model and if and how it works. While consumer press, forum users and players claimed that the new game model ruined BATTLEFIELD HEROES, economic statistics would show EA otherwise. Despite the predictions of destruction, over a year on, BATTLEFIELD HEROES continues to be a powerhouse in the free-to-play space, with nearly 7 million registered users, no declining trend in active users, and it long-term future assured. So, what happened? In this talk, Ben Cousins, General Manager of Easy (the EA studio behind BATTLEFIELD HEROES) takes us through the story of this controversy. Through the development of BATTLEFIELD HEROES and the early performance…

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SWTOR Could Attract 50M Monthly Players with F2P Model says Pachter

We all know that SWTOR going free to play is big news. But what we don’t know yet is just how big it might be for the game itself. I personally know a lot of people who say they will play if it goes free now it is. Star Wars: The Old Republic could attract up to 50m monthly players says Wedbush! This could be very good news for the company which has been suffering a stock loss since November. Investors want to see some results and they expected a lot from this game so the new model may be just what is needed to get numbers back in the positive direction they want to see again. Michael Pachter, industry analyst for Wedbush says: “We remain incorrigibly positive on the EA story. Despite a relatively low number of packaged good releases this year, we expect EA to grow revenue and…

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Pachter: “Subscription MMOs have peaked. If Star Wars couldn’t do it, no-one can do it.”

Industry analyst Michael Pachter says that MMOs have peaked. He says that if Star Wars couldn’t make it happen, no one can. It’s an interesting theory from one of the biggest experts in the field but is it true? PC Games explains more: “I thought Star Wars: The Old Republic would make it big, but it didn’t. It looks like subscription MMOs are as big as they’re going to get – there are only 6-7 million people willing to spend $15 a month. If Star Wars couldn’t do it, made by Bioware, then no one can do it.” He continues to explain the reasons he believes EA’s stock is dropping. Supposedly, he candidly tells John Riccitiello why no one is buying their stock. I told him: ‘the reason your stock is in the toilet is because you’re in the fifth year of a three year turn around’ says Pachter. He…

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EU now Allows the Sale and Purchase of SWTOR Accounts

Is it legal to sell your SWTOR account if you are no longer playing it? If you live in Europe, it will be. A European court has now deemed it legal to resale the rights to used software licenses, no matter how or where they were obtained. This includes video games like SWTOR. “A European court has ruled that it’s permissible to resell software licenses even if the package has been downloaded directly from the Internet. It sided with a German firm in its legal battle with US giant Oracle.”  Read more. Basically this means that you can buy and sell your SWTOR account as you please in Europe. But what does this mean for items or credits? That we are not sure on yet. The article explains: “The ruling made it clear that trade in used software was permissible even if the software had not been shipped on a…

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