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Forums - Sales Discussion - EA Posts Fiscal Q3 Net Loss of $641 million

Demotruk said:

And "good teams" come cheap.  Also, they are easy to find and get to struggle under serious budget limitations.  Also, being experienced, proven artists, they love exercising their creative minds within the limitations of the most restrictive console (by a longshot, compared to previous generations) and tightest budgets possible.

 

 

Nintendo's first string teams have done pretty well for themselves on Wii.

Oh wait, you probably think Wii owners are stupid and simply follow the word "Wii" when purchasing games.

 

So.. you think Nintendo's first party dev teams are cheap?  Can you state that outright, so I can quote you?



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Demotruk said:
celine said:
EA CEO John Riccitiello "excited" about new tennis game for Wii from EA's Sports Active line.

Uh !? is the "All Play" brand dead ?

 

Why? They can have different brands that identify with different ideas. Sounds like this is intended for the audience that bought Wii Fit.

Because if it did then there should be an interesting analysis about it.

"All Play" name make me think about demographic.

"Sports Active" make me think about a job.

Seeing what you have on your sign I think you can catch my reference... 

 



 “In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.”  Hiroshi Yamauchi

TAG:  Like a Yamauchi pimp slap delivered by Il Maelstrom; serving it up with style.

Well if Dead Space gets good reviews it could be a hit, but EA is known for just throwing shit out regardless of how good or bad it is which kind of put them in this situation. So Wii fans don't get your hopes up.



GamerTag/PSN ID JoshmyersBV (please add me I have 2 friends on Xbox Live)

big_boss said:
Well if Dead Space gets good reviews it could be a hit, but EA is known for just throwing shit out regardless of how good or bad it is which kind of put them in this situation. So Wii fans don't get your hopes up.

Yeah, let's see how it goes. I hope they're not rushing this out to get some quick cash...

 



My Mario Kart Wii friend code: 2707-1866-0957

I didn't say any such thing, nor did I imply it. What I did say was that the first string teams, which is what Iwata called the people who created Wii Sports, have done financially well for themselves on Wii.

And when a great team works on a small game (ie. without as many people on the project), it's still cheaper than a big budget HD game.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

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celine said:
Demotruk said:
celine said:
EA CEO John Riccitiello "excited" about new tennis game for Wii from EA's Sports Active line.

Uh !? is the "All Play" brand dead ?

 

Why? They can have different brands that identify with different ideas. Sounds like this is intended for the audience that bought Wii Fit.

Because if it did then there should be an interesting analysis about it.

"All Play" name make me think about demographic.

"Sports Active" make me think about a job.

Seeing what you have on your sign I think you can catch my reference... 

 

 

Yeah, I get your reference. Although, I would think "All Play" is simply an open invitation to everyone rather than demographic, like Touch! Generations. But nonetheless I see your point.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

Groucho said:
HappySqurriel said:
Groucho said:
Despite the consoles having approximately equal marketshare, EA got 29% of its revenue from HD titles, and 11% from Wii titles.

Did EA have a 29:11 HD to Wii game ratio (or more like 29:14, thanks to individual unit costs)? Were the profit margins on Wii games so much higher than the HD games, that EA should just drop HD development altogether? Was it even higher at all? Does anyone have any real numbers to support these assumptions?

The Wii doesn't make EA as much revenue OR profit as the HDs -- if it did, EA would make a lot more Wii games, plain and simple. The "3rd parties make crap for the Wii" excuse is getting old. All of EA's AllPlay titles this past year were decent, yet their revenue stunk. Should EA just abandon their sports franchise staples altogether, and start making pool, pinball, etc. for the Wii masses, or do you think that's already covered a bit?

The attach rate is for 3rd party Wii titles is abysmal. Its *not* because they all "stink", either. The Wii sucks for 3rd party development, in all but a select few genres (i.e. casual), until proven otherwise, or until it outnumbers the HDs by a colossal margin.

 

How many Wii games had the development budget or marketing budget of Army of Two, Left 4 Dead, Dead Space, Burnout Paradise, Mercenaries 2 or Battlefield Bad Company?

Realistically, those games alone probably have 2 to 4 times the combined development and marketing budget of all Wii exclusive games released by EA to date ...

Wait, sorry... you lost me here.  How again are the Wii games cheaper to develop and make if the developer has to spend more on them to succeed?

EA's new Wii attention, by the way, is focused on the casual market -- i.e. where the Wii succeeds, and has proven itself.

 

Where did I say EA needed to spend more for Wii games than they're spending on HD games? I clearly pointed out that EA has spent more money developing and marketing their HD console only games in 2008 than they have spent developing and marketing their Wii games since it launched; and that was mostly in reference to your comment:

"Did EA have a 29:11 HD to Wii game ratio (or more like 29:14, thanks to individual unit costs)? Were the profit margins on Wii games so much higher than the HD games, that EA should just drop HD development altogether? Was it even higher at all? Does anyone have any real numbers to support these assumptions?"

All you have to do is like up the games to see my point:

Dead Space vs Boom Blox
Army of 2 vs Smarty Pants
Left 4 Dead vs MySims
Burnout Paradise vs EA Playground
Mercenaries 2 vs Boogie
Battlefield Bad Company vs Nerf N-Strike

Anyone who has any clue about how much work goes into game development in particular (or software development in general) knows that there is an order of magnitude of work difference between the HD games and the Wii games



Groucho said:
Aiemond said:
HappySqurriel said:
Groucho said:
Despite the consoles having approximately equal marketshare, EA got 29% of its revenue from HD titles, and 11% from Wii titles.

Did EA have a 29:11 HD to Wii game ratio (or more like 29:14, thanks to individual unit costs)? Were the profit margins on Wii games so much higher than the HD games, that EA should just drop HD development altogether? Was it even higher at all? Does anyone have any real numbers to support these assumptions?

The Wii doesn't make EA as much revenue OR profit as the HDs -- if it did, EA would make a lot more Wii games, plain and simple. The "3rd parties make crap for the Wii" excuse is getting old. All of EA's AllPlay titles this past year were decent, yet their revenue stunk. Should EA just abandon their sports franchise staples altogether, and start making pool, pinball, etc. for the Wii masses, or do you think that's already covered a bit?

The attach rate is for 3rd party Wii titles is abysmal. Its *not* because they all "stink", either. The Wii sucks for 3rd party development, in all but a select few genres (i.e. casual), until proven otherwise, or until it outnumbers the HDs by a colossal margin.

 

How many Wii games had the development budget or marketing budget of Army of Two, Left 4 Dead, Dead Space, Burnout Paradise, Mercenaries 2 or Battlefield Bad Company?

Realistically, those games probably have 2 to 4 times the combined development and marketing budget of all Wii games released by EA to date ...

 

The wii games don't need the same budget as HD, what they need though, is the good teams working hard to make the best game possible. The nature of the wii makes it so that dev costs will be inherently lower. Now, for marketing, if they got even half that budget, DONE CORRECTLY, we would see a marked difference.

And "good teams" come cheap.  Also, they are easy to find and get to struggle under serious budget limitations.  Also, being experienced, proven artists, they love exercising their creative minds within the limitations of the most restrictive console (by a longshot, compared to previous generations) and tightest budgets possible.

 

 

Because you know, being able to have bragging rights and the biggest dick is more important than making profits. The point is, they have limitations even on HD consoles. If the assets are cheaper to make (which they are) on the wii, they don't have to have the same damn budget. Its simple math.  Look at how big dick syndrome got rockstar record profits!....er wait, they still barely made any when they released their best games. Well, but look at EA...oh wait, this thread is about EA. So really it has gotten the companies no where. Now, the best teams CAN complain, but look at the layoffs, do they really think they are gonna get a job? We have good devs already jobless. its obvious you have no idea how business should be working. They are supposed to make money. HD does not make enough money for the risk. Its simple.



Now Playing: The Witcher (PC)

Consoles Owned: NES, SNES, N64, PS1, PS2, Wii, Xbox 360, Game Boy, DS

A perfect example of misallocation of resources is Rock Band. Activision did whatever it took to get GH out for the Wii and it wound up being the best selling version and possibly their most lucrative title. EA for whatever reason, launched RB and RB2 late and let GH capture the much of the Wii market. It's that kind of decision making that can break a company.



Soriku said:
IGN says it's an original game, not a port...

http://wii.ign.com/articles/950/950714p1.html

During its fiscal third quarter earnings call today, Electronic Arts CEO John Riccitiello announced a Wii version of last year's horror shooter Dead Space is on the way. No other details were revealed, but IGN has heard it will be an original take on the game that makes full use of the Wii remote.

"We're bringing core intellectual property to the Wii," Riccitiello said. "Wii is the market leader -- they're getting half of our emphasis in terms of title count."

Dead Space was released on the Xbox 360, PlayStation 3, and PC last October and received high praise for its beautiful graphics, creepy atmosphere, and gruesome alien zombie dismemberment. Oh, and zero gravity gameplay. Electronic Arts credits the game as one of its major sales drivers during its fiscal Q3.

 

Bu bu but......WII IS CASUAL ONLYZ!!11!!!11!!



Now Playing: The Witcher (PC)

Consoles Owned: NES, SNES, N64, PS1, PS2, Wii, Xbox 360, Game Boy, DS