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EA revenue split PS2>PS3>360>Wii wat

Vinci said:
For the same reason they didn't make any money on the Wii: Third party games obviously can't sell on the DS.

Shame all those great efforts by EA didnt sell on the DS...just a shame
 
jordan0386 said:
When you want my parents and grandparents to game, I'd say thats a pretty casual approach.

So it's considered a casual approach, being able to enjoy games with anybody (gamer, casual, or non-gamer) and being able to enjoy my own types of games that they won't play, on the same console?

*scratches head*
 
Opiate said:
The short analysis is this. Look at EA's profit margins over the last 5 years (including this year, which won't be in that report):

FY 04: $511 million R&D costs, $577 million profit.
FY 05: $633 million R&D costs, $504 million profit.
FY 06: $758 million R&D costs, $236 million profit.
FY 07: $1041 million R&D costs, $76 million profit.
FY 08: $1238 million R&D costs, $487 million loss.

That's a fairly steady line with a fairly obvious conclusion.
I don't think the conclusions are as cut-and-dried as you do. There are elements that you don't seem to be taking into account, such as EA's expansion over this time. According to allgame, in 2003 EA produced about 70 products (game/platform combinations). In 2007 they produced about 160. Of course, not all of these require the same investment, but no amount of special exceptions could make those numbers match. R&D has doubled in part because amount of product has doubled.

Their problem is that revenue has gone up, but not nearly as fast (only about 25%). I'd say that at least one factor here is the cycle change in hardware, which means that EA is producing more versions of each title, all while things like purchase abstinence for the old systems and low installed bases for the new ones potentially reduce the return on each version.

You're right that changes are needed, but in part I (and EA, if you read the whole report) think that some of these changes are required of the market, and should take place as the transition stabilizes. (As an aside, the report's wording in places indicates a severe dislike on EA's part of their reliance on the platform holders; rumors of an EA console justified?) On the other hand, costs clearly must be reigned in, and things like the closing of EA Chicago and so forth are steps in that direction. The situation is unstable, but it's not dire (yet). EA's stock price performs at or around market average now; a comedown from several years ago when it outperformed, but not indicating much worry from the investment sector, whose own interests are at stake.
 
HK-47 said:
Shame all those great efforts by EA didnt sell on the DS...just a shame

Yeah, there was that one





and that other one







and, surely, you remember this one!




Yeah, I gots nothing.
 
I think the problem is that EA just doesn't take the Wii or DS seriously. They constantly release crappy titles for both systems, and when they finally release a good title it's such a niche thing it doesn't sell. Games like Skate It give me hope, and I really hope it turns out well and sells like it should, because by now we should have had the entire sports line up on the system with versions that are superior, gameplay wise, to their PS/360 counterparts.
 
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