According to GamesIndustry.biz the answer is diversification, with the superb progress being made by the company's casual, online, ad-funded and micro-transaction based products offsetting the rising costs in their traditional markets, which are currently eating away at the firm's margins and profits.
This new casual market is performing well for them with strong growth over the last few years and revenue up by 47 per cent to USD 127 million. Although this is still a small fraction of EA's current USD 3 billion turnover, in the coming years it is expected to become far more prominent.
It seems that the age of the one-size-fits-all boxed game is ending fast - and any games company not seriously considering the impact which this diversified future will have on their business models risks being left behind.
Companies, particularly public companies like Microsoft, need to grow.
i mean its pretty simple, they spent close to 30 billion in acquiring activision, they thought they'd make it bk no problem, and that didnt happen.
its just shit that because of MS's miscalculation alot of people lost their jobs.
They are going to use AI for a large portion of the game development process. Upper management need bonuses and the shareholders need more money. So, people will lose their jobs.
They shouldn't have bought any studios. Some is okay...but they went on a shopping spree...stupid
The better question is why did Microsoft buy publishers for a service they were subsidizing they knew couldn't support.
And why are so many websites trying to make people feel sorry for Microsoft instead of truly criticizing the fact they are closing studios and killing jobs that would have been fine if Microsoft themselves hadn't gotten involved.
Quit feeling sorry for Microsoft and start feeling sorry for the industry and the all the gamers who are actually losing out.
THIS IS MICROSOFTS FAULT.
The first thing that happens after any major acquisition or merger is a consolidation of the whole new portfolio, which includes cutting any excess, bloat or portfolios that don't fit the larger MO of the big boy. So far, it's been par for the course with Microsoft and that's why gamers have been so against this acquisition. Tango Gameworks is the beginning. You think Microsoft wants to pay to keep small timers like Ninja Theory in business?
There is absolutely zero evidence to suggest that Microsoft will improve any of these studios, but plenty to suggest that they will get rid of what they don't need and hold onto the IP. The real agenda of the acquisition was always to acquire The Elder Scrolls, Diablo, Fallout, Call of Duty, Candy Crush etc. that will create millions in passive revenue stream for Microsoft regardless of where the games release. Microsoft simply wants their cut.
Because of Games Pass Microsoft has no interest in investing in new IP which is risky and requires creative talent they can neither nurture nor manage. Game Pass has also not grown in the way Microsoft expected it to, even post acquisitions. Therefore the logical thing to do, without serious money makers to release, is to cut as much cost as possible.
"They want you to believe the devs under them are super stoked to work generative AI into their processes," continued Gaider, "but I assure you what they took as excitement was really a veiled wail of despair not unlike the time that team was informed of their new 'really cool' live service mandate.".
I think anyone with some common sense knew this, im glad i don't support their games anymore, what a sh!t company.
I said this yesterday. AI isn't what we want when it comes to crafting artistry. Alas, these soulless corporate morons don't care about their work, only about cutting corners as much as possible.
Has the rapid growth of Xbox made the ship too heavy? Following the closures of Tango Gameworks, Arkane Austin, and Roundhouse, we explore what the future of Xbox could look like.
This ship was never meant to sail, this ship was made from the get go to sink as fast as possible. It almost feels that they want to lower the standards of quality in the industry so that they can fit in
Xbox has no soul and Phil has no confidence, and it's impossible to say either do when they killed Tango and Arkane Austin.
Everything they've said since has only made them look worse to a point that they're actually less competent than Embracer.
Whe you release something like the series S and expect it not to hurt your business model, and developers have to have parity with games. Then you know Microsoft don't care. Series s is the final nail that broke developers,
after releasing many big sport titles like(FIFA,NBA,NFS etc ) , and The SIMs .. every body believed that EA going to be one of the bigest GAME companies in history..
but they abuse some subjects like FPS(MOH) , they did well but not enough for EA name.
They buy every license, title, franchise, in sight. So you end up with a company so huge, you have to buy their crap because no one else has the rights.
To top it off, they make a financial killing by selling the same game every year. They just add a few worthless features put it in a different box and wella! a new game folks!
Madden...cough..NASCAR
Like all businesses, its profitability over ingenuity. At this stage when most companies are transitioning to the next generation, it seems as though EA's business logic is to produce bare minimum and maximize profit through digital revenue. Bare minimum for EA is maximum for other companies and that's both a compliment and a gripe. I'm not going to expect a company like EA to push the new IP envelope since you tend to stick to winning formulas.
The article is right about the all-in-one-box game. It will be a thing of the past. Microtransactions are off-setting costs at EA. Micro-transactions are here for the long-term. Its either that or a bunch of PEPSI adds in Halo 4 ;)
...Ports.
I like their games,the reason they're succesful is because they have a nice little monopoly in their sports games.