EA's Monetary Strategy Under Fire- Time for Change?

[underdog13]

Quote: Originally Posted by SyncereBlackout

I'm not sure what our numbers are to even cause that much of a "trend" for example, one of the many Reddit posts had roughly 80k upvotes. assume 1/2 of those are throwaways, so 40k upvotes. Do we have 30-40k unique users here on OS forums to focus their commenting and tweeting for a solid 24-72 hours? I'm legitimately asking because i'm not sure.

We need to call our banner men for support.

[Toupal]

Quote: Originally Posted by Brightline

I really don't think this is a problem in Madden at all. MUT is a standalone mode, every other mode is completely available at purchase. I suspect the issue here is that people here feel (and in my opinion rightfully so) that EA has neglected CFM, the preferred mode here, in favor of MUT. Somehow complaining about the ethics of MUT will help CFM get more attention?

This right here is why people put the blame on Ultimate Team Modes:


Despite pulling in $800 million from Ultimate Team Modes just last year, and despite development costs being way more expensive, EA has progressively spent less on their game development more and more each year, with an increase not quite to where it was in 2017.

If you take inflation into account, EA has spent $300 million less on development this year than they did in 2009 (Which would have been the year of Madden 10)

So this has to beg the a few questions:

1. Where is that $800 million going?

2. Why are they spending less on development even though development costs more now?

3. What is EA doing with all that money the microtransaction money and money they are saving from spending less on development?

4. With U.T. modes making as much as they do, are we eventually going to see single players modes pushed to the side?

I would most certainly be a big supporter of MUT if they used their extra income towards development, however that does not appear to be the case. Instead it leaves people asking, "What are you doing with all that extra money?"

Because of this, EA has put their developers in a tough spot with no resources, and we see people like Rex trying to defend a product that I believe he put all his resources and effort into.

[roadman]

This is two years old, but I think we need to look at the whole picture vs a portion of the picture.

Maybe this will help this situation a bit clearer with decreased development cost vs more revenue, which, from a business standpoint, is a sound business plan.

http://www.wikinvest.com/stock/ELECT...ating_Expenses

If you are going to bring in decreased developmental costs with higher revenue, you need to bring into the equation of expenses as well to see the whole picture.

[Toupal]

Quote: Originally Posted by roadman

This is two years old, but I think we need to look at the whole picture vs a portion of the picture. Maybe this will help this situation a bit clearer with decreased development cost vs more revenue, which, from a business standpoint, is a sound business plan. http://www.wikinvest.com/stock/ELECT...ating_Expenses If you are going to bring in decreased developmental costs with higher revenue, you need to bring into the equation of expenses as well to see the whole picture.

The big thing to consider with that, especially when discussing money in the billions is inflation.

So compared to 2010, in 2015 EA's total operating expenses is $300 million less.

I can't speak for this for sure, but I'd imagine that development for the PS4/ XBOX1 is more spendy in 2015 than the 2010 PS3 and 360? I honestly don't know for sure. But what I do know is that development costs a lot more in 2015 that it did in 2010.

With that extra $800 Million from MUT and the $300 Million they are sparing, that leaves $1.1 billion.

So what are they doing with all that extra money if it is clearly not going towards development?

[mykelmosinee]

Quote: Originally Posted by Toupal

The big thing to consider with that, especially when discussing money in the billions is inflation. So compared to 2010, in 2015 EA's total operating expenses is $300 million less. I can't speak for this for sure, but I'd imagine that development for the PS4/ XBOX1 is more spendy in 2015 than the 2010 PS3 and 360? I honestly don't know for sure. But what I do know is that development costs a lot more in 2015 that it did in 2010. With that extra $800 Million from MUT and the $300 Million they are sparing, that leaves $1.1 billion. So what are they doing with all that extra money if it is clearly not going towards development?

Paying for exclusive licenses, buying out and closing smaller developers, paying huge bonuses to the upper management, just to name a few.
And no, this isn't sarcasm...let's just be honest here.

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[SyncereBlackout]

Quote: Originally Posted by mykelmosinee

Paying for exclusive licenses, buying out and closing smaller developers, paying huge bonuses to the upper management, just to name a few. And no, this isn't sarcasm...let's just be honest here. Sent from my Redmi Note 3 using Tapatalk

Dividends, stock buy backs, and acquisitions of other developers


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[roadman]

Quote: Originally Posted by Toupal

The big thing to consider with that, especially when discussing money in the billions is inflation. So compared to 2010, in 2015 EA's total operating expenses is $300 million less. I can't speak for this for sure, but I'd imagine that development for the PS4/ XBOX1 is more spendy in 2015 than the 2010 PS3 and 360? I honestly don't know for sure. But what I do know is that development costs a lot more in 2015 that it did in 2010. With that extra $800 Million from MUT and the $300 Million they are sparing, that leaves $1.1 billion. So what are they doing with all that extra money if it is clearly not going towards development?

I wish it was that simple of subtracting A-B, it really isn't. We aren't privy to all of EA's financial statements, so, it's similar to grasping for air.

From college and business:

Assets=Liabilities + (Revenue-(Expenses + Dividends)

SyncereBlackout was on the correct trail with dividends, acquisitions, etc.....

[mannyonelover]

Well let’s hope that Ea changes it’s mind with its new franchise release of EAUFC 3 in which there changing the direction of its Ultimate team mode.
Last year they were packs/loot boxes you would buy that will give you randomize mostly duplicates in search of that golden card which never sufficed.
It seems this year they came back with a vengeance because now a lot of the cards have an expiration date you can only use them so many times before you are probably buying another pack of random buys cards it’s basically a jack pot box you pay but you don’t always win or get what you’re looking for there for add another five dollars and hope you get no whammy’s!


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