Analyst: EA Taking The Right Steps From Business Perspective; Dollar/Hour Estimate Is "Challenging"

Analyst Karol Severin from MIDiA Research said that EA is taking the right steps from the business perspective with the loot box controversy.

He then commented on his colleague's recent claims that gamers are actually undercharged by stating that it's hard to make a dollar per entertainment hour estimate.

[ccgr]

If they charge too much nobody will buy it....

[4Sh0w]

Yeah but what we have to think about is what if the majority if not all publishers consider raising retail prices instead of trying to implement microtransactions? If not this gen I definitely see them doing this next gen, but thats simple economics/expected.

[AspiringProGenji]

They already rised the price with the different editions of games that have cut content from the base game to entice people

[_-EDMIX-_]

@asp-no one's talking about special editions

what were talking about is the base price of games I have no clue why you decided to bring up different editions of games I mean dear God that's like trying to say Persona 5 has risen game prices because there's an addition that's like $120 or something.

No.

That's not what's being discussed and that has nothing to do with what we're talking about.

[_-EDMIX-_]

Likely.

[Imp0ssibl3]

Suits should stay away from games as much as possible.

[KaiPow]

Yeah, once shareholders get in there, their sole focus is to make the game into a profitable business. No thoughts to how the gamer will enjoy it or the artistic design.

[ravinash]

It'll basically turn the games industry into what the music industry is now.

[TacoTaru]

I don't know of any other consumer product where the idea is to make the product something that people will buy and then see how many undesirable things they can add (MT etc) and still be able to sell it.

[rainslacker]

That's not always 100% the case. Even investors understand that if you continuously make a product that your customers aren't happy with, then the value of your brand is likely to go down. While investors do indeed look to make as much as possible, many investors also believe in that growth to be sustainable and constant.

It's very possible this current thing going on with EA will affect their stock prices when their next quarterly report come out, because undoubtedly, the expectation was to make more money on MT, which they won't be getting.

Stock values are what keeps EA alive. If they take a major hit there, it will have repurcussions throughout their entire development practices. If they drop low enough, the CEO will leave, likely with a huge pay day(unfair but that's how stupid big business is), and someone else will come in, and maybe they'll be better....although given it's EA, I wouldn't hold out much hope since their past three CEO's have all been pretty sh*tty about putting this crap into games.

[Sirk7x]

Unfortunately, it's a billion dollar industry, and companies exist to make profit. If it wasn't profitable, all we'd have would be crowd sourced small indies made in working peoples' spare time.

[Nyxus]

From a business perspective maybe (I doubt that too, but okay), but not from any other perspective.

[Razzer]

That is what wrong with these mega-huge game companies. They are so big they lost touch with the base gamer. They focus entirely on their stockholders. That is the only perspective that matters to them and these stockholders spend too much time listening to “analysts” like this guy.

[Razzer]

“Like this guy” meaning the analyst in the article.

[Jackhass]

Well, I suppose making some right steps after making many wrongs ones is worth something.

[Cybermario]

props for removing the microtransactions but is a shame it was after the backlash, they already ruined the game for a lot of people.

[DillyDilly]

EA said they will be back they are not gone

[_-EDMIX-_]

But that could be changed no differently then the microtransactions that were removed, if Disney has any say it is very likely you're not going to see those microtransactions return.

[ravinash]

If Disney has a say, then expect something else to bring the money in.

[HyperMouse]

Id say it has more to do with Disney not wanting bad press so close to the Christmas release of the new star wars movie than anything gamers wanted

[Ittoittosai]

EA didnt do anything willingly Disney curb stomped them and made them do it.

[ShadowWolf712]

Disney doesn't handle that license. Lucasfilm does, and they operate independently.

[_-EDMIX-_]

Well to my understanding it hasn't even been confirmed that it was Disney themselves.

Also keep in mind that if Disney had such power that also means they also knew about those microtransactions in the first place.

I mean you're making it sound as if Disney came in as some hero to stop electronic art but technically speaking it would be Disney that would even be okay with microtransactions in the first place.

They had this awesome power exactly why didn't they stop this before it started? And even bigger question Is are they doing this because of the controversy? Cuz something tells me if no controversy came over this Disney would have never done that.

And I want you to consider if Disney was doing this out of the greatness of their hearts why exactly where they even allowing it to happen in the first place? 🤔🤔🤔

So all isn't as it seems I would say Disney is literally just as guilty as Electronic Arts regarding this.

These type of microtransactions do not belonging games.

[InTheZoneAC]

have fun minimizing profits

[datriax]

Oh look. Another analyst with s**t-for-brains. You guys are a dime a dozen it seems.

[SubZtx]

By this logic.. A deck of playing cards $10,000!

[EatCrow]

Dollar/hour perhaps but no...you pay 60$ whats that for exactly?

[Prince_TFK]

Ability to download the game. Now if you wanna play it after download, they gonna charge you extra with dollar/hour.

Smh.

[EatCrow]

Well F that. Not paying 60$ for a title screen. And EA titles screens are the worst.

[ravinash]

Apparently it's not in the game.

[shiva1]

Is it petrol that we are buying or some cab service that we are requesting.

If the developer wants to do dollar/hour then what am I owning at the end if it... Not even the license of that game to play campaign at my will.

Heck with this ideology. Bring back piracy :-)

[Artemidorus]

I am not buying a disc only to be told the more I play the more I need to pay.

EA needs to die it's had years of abusing gamers by the wallet. Share the licences and give other companies a fighting chance.

[_-EDMIX-_]

Lol what you think they're the only ones?

This game's as a service needs to die from any publisher that's trying to push it Activision Electronic Arts Ubisoft Microsoft would have you.

[Artemidorus]

The focus is EA, one at a time.

[HyperMouse]

Raise the price of games and people will take less risks in buying games, they will wait until they are on sale or not buy them at all, gaming is one of the biggest entertainment platforms on the planet, prices havnt risen but the market has grown and opened to more gamers than ever before, a AAA game can make billions, i dont see the argument for raising prices outside of greed and the suit whos telling you that wanting a promotion and a new car in the garage.

[plmkoh]

Here's a hot tip, how about concentrating on making a good game worth $$$ rather than thinking about how to "make a dollar per entertainment hour".

A bit like counting your chickens before they hatch.

[rocketpanda]

Caught this on SidAlpha's channel a few hours ago. The analyst is just so shortsighted, he is purely going by the numbers and the correlations he is making is baseless to absurd levels. Movies have defined run times and people know what they are paying for and how long the experience will be, other forms of entertainment like books and games we cannot judge their value by the same standard which he stats as value per hour or minute.

Games are interactive forms of entertainment and the value and time we spend on them varies from player to player. Publishers already vastly over-estimate how long a single player experience game will be, so they can say it will take 10 hours whilst for most that means a 6 - 7 hour experience. Even if publishers were to charge even more, they won't stop with DLC and loot boxes, they don't want just money, they want all the money.

[Damthatsword]

Dollar/hour aye? Thats a disgusting and embarrassing thing to accept by anyone with a functioning brain. Thank you for the viruses that condoned and defended MTs and thank you to the children with their parents credit card that keep buying this low life garbage :)
Now both of you can go back to elementary school.

[shiva1]

And I thought my gaming time will last few more years.... It looks like its numbered in weeks or days if this dollar/hour is implemented.

[shiva1]

There's no authority to look into gaming on continuing basis.... Damn those publishers. They are dictating terms....gamers need to respond

[jacksmith56]

how much did ea pay you , mt should be cosmetics only or emotes only