EA and Activision Stocks Fall - Garrett Fuller - MMORPG.com

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EA and Activision Stocks Fall - Garrett Fuller - MMORPG.com

In an effort to provide an overview on what is happening and why, let’s take a look at two of the biggest companies out there. EA and Activision Blizzard fight an epic battle, not in space or with swords, but with numbers, against financial analysts.

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Panther2103

Even with the backlash BF5 is a bug ridden mess. I bought origin access premiere or whatever to try it out and I've put about 25 hours into it so far, and the entire time is fighting with bugs in the game. Entire matches where all medics in the match cannot revive team mates, players falling through the ground, the objective bombs falling through the ground causing an unending game that you have to quit because the end trigger won't happen, imbalanced teams (seems to be fixed finally) where you would spawn with 15 players on one team and 49 on the other and you can't switch.

It's a new low even for an EA published launch.

I'm hoping this drop in stocks causes them to realize they made a mistake with the games they have been launching, and polish them more.

Activision/Blizzard should have known this would be the backlash. They shouldn't have even hosted a Blizzcon if there was nothing to announce other than a mobile title. They dug their own grave. Sure it will net them money because it will probably be played by a ton of people, but the players on PC aren't ever going to let them live this down.

Pemmin

The stocks were overvalued due to unrealistic profit projections....the stocks tumbling wouldn't be a surprise even if there wasn't any controversy(s). The bigger danger is future profits... because these companies have alienated there base and lost brand loyalty.

Itstimetodeal

Too be fair this article is a little misleading.  ALL Tech companies have taken a beating over the last couple months. Not just these two big name video game companies.   

https://www.wraltechwire.com/2018/10/26/tech-stocks-taking-a-beating-as-wall-street-anxiety-grows/

So to put this all on you dont like their direction is misleading.  There is a lot more to their stock price then a few bad game releases.  

verinta

People are voting and striking with their wallets. I bought destiny when it came out, I felt tricked...never bought another destiny game again. Same with battlefield, never bought another battlefield after bf4. I understand Ea and activision are a business, but if you don't cater to your consumers..well you won't be getting good business.

NorseGod

Panther2103 said:

I'm hoping this drop in stocks causes them to realize they made a mistake with the games they have been launching, and polish them more.

Yet, you gave them money. Come on, man.

Panther2103

NorseGod said:

Panther2103 said:

I'm hoping this drop in stocks causes them to realize they made a mistake with the games they have been launching, and polish them more.

Yet, you gave them money. Come on, man.

To try it. It wasn't full price, it was 15 dollars. Plus I was planning on using that to play through Dragon Age and a couple other games in the month I get. 

Albatroes

I can't wait for EA/Bioware to announce Mass Effect Mobile next year

WhiteLantern

The stock market is a joke. Basing the entire economy of the western world on it is even dumber.

NorseGod

verinta said:

People are voting and striking with their wallets. I bought destiny when it came out, I felt tricked...never bought another destiny game again. Same with battlefield, never bought another battlefield after bf4. I understand Ea and activision are a business, but if you don't cater to your consumers..well you won't be getting good business.

And that's the root of the problem. Gaming is a business industry now. We spend more time pretending to be financial experts then actually playing games. Hell half the people here refer to games as a "product" now.

Now before some pseudo-intellectual tries to remind me about business and economics, it is my opinion that if the game is good enough, that studio is going to do well. Some people are willing to pay any price for a good game (cash shop, subs, etc.).

I can't even name a developer today. Why? Because they don't make games, people in boardrooms do. Developers are bottom of the barrel, janitor-tier, today. They are expendable. 

Horusra

It is the end of the year...the whole stock market is always down. Never buy in October, that is the historical start of stock drops. People that do not understand the market should not report on it. The market is at an over inflated high at it is and is going to readjust sometime soon.

jj7009

OG_Zorvan said:

Think EA's fallen already? Wait until Anthem shits the bed on release. People are gonna get concussions from the stocks falling so fast.

Shits the bed doesn't even describe it. The purification stage of decay is a better analogy.

Phaserlight

WhiteLantern said:

The stock market is a joke. Basing the entire economy of the western world on it is even dumber.

I agree there are more important economic indicators but it is sort of like a weather barometer. 

Most stocks are down; only winner in my portfolio right now is Tesla. Go Elon!

jj7009

WhiteLantern said:

The stock market is a joke. Basing the entire economy of the western world on it is even dumber.

Basing our economy on the health and value of our businesses is a joke?

FlyByKnight

jj7009 said:

WhiteLantern said:

The stock market is a joke. Basing the entire economy of the western world on it is even dumber.

Basing our economy on the health and value of our businesses is a joke?

If you think the stock market is a health indicator of businesses that's even funnier.

Scot

When EA turn down single player Star Wars games because the developers can't satisfy them on how much this will be a Gaas, then you know the industry will end up in trouble.

Yes it is more complex than that, but unless gaming studios intend to develop wholly for mobile devices they need to be aware of gamers concerns about the direction they are taking gaming in. If you launch a product when Wall Street thinks you should, don't be surprised if gamers think otherwise.

Mike-McQueen

“This response impacts people’s real lives who work on the games we love.”

..on the games we love.. I had to stop and chuckle to myself reading this. Not to take away from the loss of someone’s job, but if they were making games we loved then this article wouldn’t exist.

Warlyx

OG_Zorvan said:

Think EA's fallen already? Wait until Anthem shits the bed on release. People are gonna get concussions from the stocks falling so fast.

this , the game looks tons of fun , but yeah not going to fall into the hype train .....no yet

JeffSpicoli

I Think the big takeaway from this article is the Big Studios are out of touch with what gamers want. Someone told me in another thread regarding WOW everything devs do is based on thousands of hours of data or something to that effect. If thats the case and that is the"formula for making games" then i think its obvious the industry needs to reevaluate what the driving force behind game design is based on.

Two of the games in question here BF5 & Diablo Mobile were both IMO created for other reasons than what the gamer actually wanted, think about it. BF5's setting and gameplay is not what the fanbase wanted, Diablo mobile is NOT The platform the fan base wanted. How do you offer a product your fanbase is not excited about, i dont get it.. How does this happen ? From hours of data ?

Hashbrick

Most tech stocks took a digger, Nvidia is -40%. It will rebound, that's what the market is all about, emotions. It gets rid of the stock holders that don't have the balls to hold on. They sell and take a bit of a loss to recover anything and put it somewhere else. While the market benefits those that stick in for the long gain.

alkarionlog

Hashbrick said:

Most tech stocks took a digger, Nvidia is -40%. It will rebound, that's what the market is all about, emotions. It gets rid of the stock holders that don't have the balls to hold on. They sell and take a bit of a loss to recover anything and put it somewhere else. While the market benefits those that stick in for the long gain.

pray tell me, what gain is there on a company who is not selling products and they next line of products are marked was not good enough and likely to fail? even if is the season for low, you don't lose half your value, if you was going well, tru stock market is based on otimism and projection, but we know very well then ea and blizz ther eis not nothing good going on on then, even teh most rabid fanboy are shaken, thanks for the bug riddle bf5 and diablo mobile

FlyByKnight

thunderC said:

I Think the big takeaway from this article is the Big Studios are out of touch with what gamers want. Someone told me in another thread regarding WOW everything devs do is based on thousands of hours of data or something to that effect. If thats the case and that is the"formula for making games" then i think its obvious the industry needs to reevaluate what the driving force behind game design is based on.

Two of the games in question here BF5 & Diablo Mobile were both IMO created for other reasons than what the gamer actually wanted, think about it. BF5's setting and gameplay is not what the fanbase wanted, Diablo mobile is NOT The platform the fan base wanted. How do you offer a product your fanbase is not excited about, i dont get it.. How does this happen ? From hours of data ?

I don't think they're out of touch with what gamers want, I think they're more in-touch with what they can get away with for short term profit margin increase. Game companies are short-sighted more now than ever. That is, until their stocks start plummeting and board members start flipping chairs over.

Yes they have businesses to run, but behaving like a corner hustler cutting and diminishing the product to stretch it, has long term implications. I'm sure they haven't learned their lesson though. Can't wait to see how EA figures out how to chop up Anthem into ready rock.

Sal1

NorseGod said:

verinta said:

People are voting and striking with their wallets. I bought destiny when it came out, I felt tricked...never bought another destiny game again. Same with battlefield, never bought another battlefield after bf4. I understand Ea and activision are a business, but if you don't cater to your consumers..well you won't be getting good business.

And that's the root of the problem. Gaming is a business industry now. We spend more time pretending to be financial experts then actually playing games. Hell half the people here refer to games as a "product" now.

Now before some pseudo-intellectual tries to remind me about business and economics, it is my opinion that if the game is good enough, that studio is going to do well. Some people are willing to pay any price for a good game (cash shop, subs, etc.).

I can't even name a developer today. Why? Because they don't make games, people in boardrooms do. Developers are bottom of the barrel, janitor-tier, today. They are expendable. 

I am still having fun buying and playing video games. I don't understand your doom and gloom assessment.

laserit

They've been trying too hard to keep their stockholders happy by abusing the customer.

Without the customer the stocks and the company aint worth shit.

Vandarix

Played BF V beta.. Was honestly the first Battlefield game I fell asleep playing... Could just be my old age catching up to me and working late, or that it's a waste of a game.

WarEnsemble

EA makes crappy games and ActiBlizzard is out of touch. Might as well say the sky is blue and the grass is green.