Comments on: Is Resistance Futile?: EA as The Borg http://alphavilleherald.com/2004/05/is_resistance_f.html Always Fairly Unbalanced Tue, 04 Oct 2016 13:18:56 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Urizenus http://alphavilleherald.com/2004/05/is_resistance_f.html/comment-page-1#comment-51352 Urizenus Tue, 01 Jun 2004 14:23:14 +0000 http://localhost/wp_2/?p=2861#comment-51352 Yes, I think the purchase of Maxis was a surprising success for EA. Recall that they bought it when the Sims (i.e. the Dollhouse project) was still in development and EA wanted to kill it originally, so they weren't even expecting to get anything out of that. Also, at that time Maxis was working on Sim City 3000 which was supposed to be 3D originally, and dev was going so badly it nearly sank EA -- its prolly what forced Will to sell. All those sims expansion packs have been banged out on a shoestring, so its been a very nice cash cow for EA, thank you. They must have gotten their money out many times over. Yes, I think the purchase of Maxis was a surprising success for EA. Recall that they bought it when the Sims (i.e. the Dollhouse project) was still in development and EA wanted to kill it originally, so they weren’t even expecting to get anything out of that. Also, at that time Maxis was working on Sim City 3000 which was supposed to be 3D originally, and dev was going so badly it nearly sank EA — its prolly what forced Will to sell. All those sims expansion packs have been banged out on a shoestring, so its been a very nice cash cow for EA, thank you. They must have gotten their money out many times over.

]]> By: Banshee http://alphavilleherald.com/2004/05/is_resistance_f.html/comment-page-1#comment-51351 Banshee Tue, 01 Jun 2004 13:56:32 +0000 http://localhost/wp_2/?p=2861#comment-51351 If it was "only" $125 million, my guess would be that with all of the sales of The Sims games they're close to recouping that (or perhaps have done so), even after development costs and the drag of TSO on that number. The Sims simply sold (and still sells) a phenomenal number of units, even today *years* after the release (really unheard of in the gaming world). Margin on each of those units may not have been great at the beginning, but of course with each unit you sell the margin improves. It would be interesting to learn how good an investment Maxis was (EA knows but surely will never tell) but at $125 million it doesn't sound like a bad one to me, given the unique level of sales of The Sims games. If it was “only” $125 million, my guess would be that with all of the sales of The Sims games they’re close to recouping that (or perhaps have done so), even after development costs and the drag of TSO on that number. The Sims simply sold (and still sells) a phenomenal number of units, even today *years* after the release (really unheard of in the gaming world). Margin on each of those units may not have been great at the beginning, but of course with each unit you sell the margin improves. It would be interesting to learn how good an investment Maxis was (EA knows but surely will never tell) but at $125 million it doesn’t sound like a bad one to me, given the unique level of sales of The Sims games.

]]> By: Urizenus http://alphavilleherald.com/2004/05/is_resistance_f.html/comment-page-1#comment-51350 Urizenus Tue, 01 Jun 2004 13:21:31 +0000 http://localhost/wp_2/?p=2861#comment-51350 125 million is what I recall. Can't vouch for that. 125 million is what I recall. Can’t vouch for that.

]]> By: Banshee http://alphavilleherald.com/2004/05/is_resistance_f.html/comment-page-1#comment-51349 Banshee Tue, 01 Jun 2004 12:37:23 +0000 http://localhost/wp_2/?p=2861#comment-51349 Yes, that is an interesting question indeed. Does anyone know what they paid for Maxis? Yes, that is an interesting question indeed. Does anyone know what they paid for Maxis?

]]> By: Urizenus http://alphavilleherald.com/2004/05/is_resistance_f.html/comment-page-1#comment-51348 Urizenus Mon, 31 May 2004 10:21:50 +0000 http://localhost/wp_2/?p=2861#comment-51348 "does not care to develop its PC market much because looking at the entire gaming market, the console market is much bigger than the PC market and much more lucrative from the corporate perspective" Agree completely, Banshee. EA couldn't know this a couple years ago, but the console market has emerged as the bigger market by far. Its an interesting question as to whether they have/will recoup their investment in Maxis. Maybe someone knows... “does not care to develop its PC market much because looking at the entire gaming market, the console market is much bigger than the PC market and much more lucrative from the corporate perspective”

Agree completely, Banshee. EA couldn’t know this a couple years ago, but the console market has emerged as the bigger market by far.

Its an interesting question as to whether they have/will recoup their investment in Maxis. Maybe someone knows…

]]> By: Banshee http://alphavilleherald.com/2004/05/is_resistance_f.html/comment-page-1#comment-51347 Banshee Mon, 31 May 2004 08:34:32 +0000 http://localhost/wp_2/?p=2861#comment-51347 Well, I think that despite the failure of TSO, the acquisition of Maxis was rather brilliant, because it gave EA the most successful desk top franchise in history, The Sims. EA has made buckets of money from TS and its extensions ... it's amazing, if you look at what is selling even today the Sims titles are bobing around in the Top Ten even today. My guess is that the folks in Redwood City are banking on a bumper crop of cash when TS2 comes out later this year. I do think, however, that EA is not hog wild about PC gaming in general, apart from the Maxis franchises it acquired (Sims and Sim City). Most of the other EA PC titles are ports of console games. The PC gamer is a different fish from the console gamer, however, and I think that EA understands this but -- again apart from a few lucrative exceptions -- does not care to develop its PC market much because looking at the entire gaming market, the console market is much bigger than the PC market and much more lucrative from the corporate perspective. For me, I am still happily progressing in Eve Online, which is not afiliated with any large company, so I can watch the drama of EA and the other biggies unfold from the observers perspective. We also have a lot of EA refugees in Eve, by the way, due to the shut down of EnB. Well, I think that despite the failure of TSO, the acquisition of Maxis was rather brilliant, because it gave EA the most successful desk top franchise in history, The Sims. EA has made buckets of money from TS and its extensions … it’s amazing, if you look at what is selling even today the Sims titles are bobing around in the Top Ten even today. My guess is that the folks in Redwood City are banking on a bumper crop of cash when TS2 comes out later this year.

I do think, however, that EA is not hog wild about PC gaming in general, apart from the Maxis franchises it acquired (Sims and Sim City). Most of the other EA PC titles are ports of console games. The PC gamer is a different fish from the console gamer, however, and I think that EA understands this but — again apart from a few lucrative exceptions — does not care to develop its PC market much because looking at the entire gaming market, the console market is much bigger than the PC market and much more lucrative from the corporate perspective.

For me, I am still happily progressing in Eve Online, which is not afiliated with any large company, so I can watch the drama of EA and the other biggies unfold from the observers perspective. We also have a lot of EA refugees in Eve, by the way, due to the shut down of EnB.

]]> By: Urizenus http://alphavilleherald.com/2004/05/is_resistance_f.html/comment-page-1#comment-51346 Urizenus Tue, 11 May 2004 12:38:34 +0000 http://localhost/wp_2/?p=2861#comment-51346 I'm told that when EA purchased Maxis, it was in part a hedge, in case desk top PC gaming became a big thing. Turns out it hasn't -- consoles still rule, so the Maxis investment turns out to have been unnecessary and probably a mistake in the eyes of some. Investors will judge EA by its business plan as a whole, and failures like TSO are just little bugs splatting on their windshield. TSO is just a footnote in their annual report (well, maybe a sentences, but you get my drift). I’m told that when EA purchased Maxis, it was in part a hedge, in case desk top PC gaming became a big thing. Turns out it hasn’t — consoles still rule, so the Maxis investment turns out to have been unnecessary and probably a mistake in the eyes of some. Investors will judge EA by its business plan as a whole, and failures like TSO are just little bugs splatting on their windshield. TSO is just a footnote in their annual report (well, maybe a sentences, but you get my drift).

]]> By: Maria LaVeaux http://alphavilleherald.com/2004/05/is_resistance_f.html/comment-page-1#comment-51345 Maria LaVeaux Tue, 11 May 2004 11:16:28 +0000 http://localhost/wp_2/?p=2861#comment-51345 Whether it is 50,000, or 70,000, I think we are ALL agreed it is NOT the 200,000 Maxis expected. The POINT is, The Numbers are NOT there to support continuation of the game and the developers are too inept or indifferent to do anything to attract new players, or keep the ones it already has. EA Does rule the Desk top Gaming world, but On Line, where the Big Dogs take the Big risks, Maxis is a very VERY small dog indeed. and no matter how effective their business stratigy is, their Complete mismanagement of this part of their corporation will not go unnoticed in the Business world. Maria. Whether it is 50,000, or 70,000, I think we are ALL agreed it is NOT the 200,000 Maxis expected. The POINT is, The Numbers are NOT there to support continuation of the game and the developers are too inept or indifferent to do anything to attract new players, or keep the ones it already has.

EA Does rule the Desk top Gaming world, but On Line, where the Big Dogs take the Big risks, Maxis is a very VERY small dog indeed. and no matter how effective their business stratigy is, their Complete mismanagement of this part of their corporation will not go unnoticed in the Business world.

Maria.

]]> By: Urizenus http://alphavilleherald.com/2004/05/is_resistance_f.html/comment-page-1#comment-51344 Urizenus Tue, 11 May 2004 10:02:48 +0000 http://localhost/wp_2/?p=2861#comment-51344 Should have bought EA a year ago. Problem is, one needs money to buy shares! EA has an economically sound business policy for sure. Buy successful smaller game companies, gut them, run them as cash cows, take their brand names and extend them as far as possible, thus getting more cash cows. Focus on games that require annual repurchase even though no technological value has been added. Example: EA Sports -- as long as teams keep changing their rosters people will have to keep buying new edtions of Madden Football etc. Gain total marken domination and stomp or buy all competition that makes games for the playstation platform. Rule the Universe! Should have bought EA a year ago. Problem is, one needs money to buy shares!

EA has an economically sound business policy for sure. Buy successful smaller game companies, gut them, run them as cash cows, take their brand names and extend them as far as possible, thus getting more cash cows. Focus on games that require annual repurchase even though no technological value has been added. Example: EA Sports — as long as teams keep changing their rosters people will have to keep buying new edtions of Madden Football etc. Gain total marken domination and stomp or buy all competition that makes games for the playstation platform. Rule the Universe!

]]> By: RebRachman http://alphavilleherald.com/2004/05/is_resistance_f.html/comment-page-1#comment-51343 RebRachman Tue, 11 May 2004 03:31:18 +0000 http://localhost/wp_2/?p=2861#comment-51343 When resistance is futile there is only one thing to do: Buy EA shares. When resistance is futile there is only one thing to do: Buy EA shares.

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