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EA Posts Lower Quarterly Loss Than Predicted

by Karlie Yeung - November 3, 2010, 7:26 pm EDT
Total comments: 14 Source: (Press Release)

Smaller loss than last year, but huge drop in Wii software sales.

Electronic Arts has posted a net loss of $201 million for the three months ending September 30, the second fiscal quarter. This is a better result than expected, with the same period in 2009 recording losses of $391 million.

Wii software sales dropped dramatically, with 82 percent fewer sales compared to the same period in 2009. Wii games accounted for only six percent of EA's total output. Nintendo DS game sales were one percent. 

EA's leading platforms are PS3 and Xbox 360, with game sales coming to 34 and 30 percent of the total, respectively. This gives them the claim of number one publisher for HD consoles. The majority of remaining revenue is from digital sales, also at 30 percent.

Talkback

They had a lower number of Wii releases, too, and lower quality Wii releases at that. I don't know if they include EA Partners in these numbers, but if so, Rock Band 3 may help a bit.

broodwarsNovember 04, 2010

If people were wondering why NBA JAM was ported from the Wii to the HD consoles as suddenly and majorly as it was, that 82% drop in Wii sales probably played a large role (along with the utter failure that was NBA Elite 11, of course).

Retro DeckadesNovember 04, 2010

Quote from: broodwars

If people were wondering why NBA JAM was ported from the Wii to the HD consoles as suddenly and majorly as it was, that 82% drop in Wii sales probably played a large role (along with the utter failure that was NBA Elite 11, of course).

It's very possible. Although keeping it a Wii exclusive could have helped to close that gaping gap quite a bit. Perhaps this is happening in some parallel universe.

Chozo GhostNovember 04, 2010

What games have they put out on the Wii that are actually worth a damn? The only 3rd party titles I see have titles like "Casual Dance Rabbids" or some garbage like that. Meanwhile, the PS3/360 is getting all the cool titles like Red Dead Redemption.

The 82% drop in EA's Wii sales is both a curse and a blessing at the same time. Its bad because it might cause them to reduce their support, or even pull it all together (which they did with Sega's Dreamcast); its a blessing because it means people aren't buying up the shoddy low quality casual shovelware anymore, so this means EA is actually going to have to put some effort into their Wii games from this point on if they want to make a profit there.

So like I said, this can either be good news or bad news depending on how EA inteprets it and how they react. But either way, I am at least happy that Wii consumers seem to have finally come to their senses and are no longer buying up the low quality garbage third parties have been trying to shove down our throats since the console launched. Maybe we will lose EA as a friend, but in my opinion with friends like EA who needs enemies? Friends don't treat their friends the way EA has treated Wii owners so far, so if we do lose them its not much of a loss, imho.

Ian SaneNovember 04, 2010

Why wouldn't this happen?  EA doesn't release anything worth a shit for the Wii so this is what is SUPPOSED to happen.  Release high quality product that just doesn't sell and you've got an argument.  But if EA just uses this as an excuse to neglect the Wii further that's just a total screwjob.  If this was a contract you would have a case that EA was not bargaining in good faith.  They did not make a legitimate effort to provide us with decent product so they should not be able to penalize us for not holding up our end of the deal.

But this isn't a contract and it isn't a deal.  It's a free market and EA can do as they wish.  But it really is complete bullshit.  Wii owners were never given a fair opportunity to buy quality EA games in the first place.  We've lost a rigged game.

NemoNovember 04, 2010

I'm surprised to say I've actually bought 2 or 4 EA games for Wii: NBA Jam, Boom Blox and (if it counts) Beatles Rock Band and Rock Band 2.

KDR_11kNovember 05, 2010

Quote from: broodwars

If people were wondering why NBA JAM was ported from the Wii to the HD consoles as suddenly and majorly as it was, that 82% drop in Wii sales probably played a large role (along with the utter failure that was NBA Elite 11, of course).

Does EA usually do exclusive games?

Chozo GhostNovember 05, 2010

Quote from: Ian

But this isn't a contract and it isn't a deal.  It's a free market and EA can do as they wish.  But it really is complete bullshit.  Wii owners were never given a fair opportunity to buy quality EA games in the first place.  We've lost a rigged game.

Agreed. We didn't have a chance. The only way to encourage more third party support is to buy the games, but the problem was the games were all crap so buying those games would have just been an endorsement for the 3rd parties to dump more crap on us. Whether we bought the crap games or not, there was just no way we were actually going to get quality games out of the deal. Ubisoft went so far as to apologize for their crappy initial Wii offerings, and I commend them for that apology... I think they've also made a sincere effort to do better, because games like Red Steel 2 are much more polished than games like Red Steel 1.

But EA has not given us an apology, and it doesn't look like they're making any effort to improve either. The one quality Wii exclusive they were giving us they stabbed us in the back over by making it for all systems, so what was meant to be exclusive for the Wii ended up coming to everything but with the Wii getting the shittiest version of all. How the hell is that fair to us? Their 82% drop in sales is Karma, but the sad thing is they're probably going to blame us for that like it was our fault, and then use it as a pretext to further ignore the Wii.

BlackNMild2k1November 05, 2010

Quote from: KDR_11k

Does EA usually do exclusive games?

Single platform exclusives? probably not too often. I think they are more into single platform EXCLUSIONS than single platform exclusives.
But overall they are a throw it on every possible platform as often as possible company.

broodwarsNovember 05, 2010

Quote from: Chozo

But EA has not given us an apology, and it doesn't look like they're making any effort to improve either. The one quality Wii exclusive they were giving us they stabbed us in the back over by making it for all systems, so what was meant to be exclusive for the Wii ended up coming to everything but with the Wii getting the shittiest version of all. How the hell is that fair to us? Their 82% drop in sales is Karma, but the sad thing is they're probably going to blame us for that like it was our fault, and then use it as a pretext to further ignore the Wii.


I don't entirely disagree, but it's not like EA didn't put out some decent games on Wii.  Dead Space Extraction wasn't quite what I was looking for as a Dead Space fan, but it wasn't a bad game.  Ditto for Boom Blox, and the sequel got good reviews.  Likewise, I don't like Sports games in general, but Wii consistently got the best version of Tiger for a few years, especially after adding MotionPlus support, and I'd heard decent things about Madden as of late.  Then there's JAM, of course.  True, EA hasn't been in the upper tier of 3rd party support on Wii, but they've put out some decent games.

And I wouldn't come down on them about the lack of Wii exclusives.  You may not have noticed, but EA doesn't do exclusives in general.

Ian SaneNovember 05, 2010

Quote:

True, EA hasn't been in the upper tier of 3rd party support on Wii, but they've put out some decent games.


Actually EA probably IS in the upper tier for Wii third party support.  I can't think of any third party that has really impressed me with their Wii support so just by having a few decent games EA would be one of the best.

Dead Space: Extraction was not a poor product but it is a perfect example of what is wrong with most Wii third party support.  No one wanted this game.  We wanted the REAL Dead Space, not some spin-off.  Now let's say the hardware difference is such that a conversion of the first game or Dead Space 2 would not work.  They still could have made a Wii-exclusive Dead Space that had the same type of gameplay as the main series.  THAT is the problem.  We always get a non-essential spin-off that doesn't play anything like the main game and the gameplay is the whole reason we would be interested in the first place.

I remember when Resident Evil: Code Veronica came out for the Dreamcast (it was later ported to other systems but at the time was an exclusive).  At that point Resident Evil was more of less a Playstation franchise.  Capcom didn't give Sega some Resident Evil cart racer or anything like that.  This was a REAL Resident Evil game with that style of gameplay.  It was such that if you owned both a Playstation and a Dreamcast and were a fan of the series it would be an essential purchase for you.  Dead Space: Extraction is not that type of game.  Unless you are a supreme Dead Space nut it is unessential if you own another console.  It exists for Wii-only owners to get some sort of Dead Space related product to that audience.  It was not designed to be an essential Dead Space game that offers Dead Space style gameplay.

I would have been interested in a Dead Space Wii if it was a real Dead Space game.  I don't care if the story is some unessential side-story, I just want the Dead Space gameplay.  That's the whole point.  Hey, the Genesis gets Contra: Hard Corps and it isn't a numbered Contra game and has different characters.  Yeah, but it played like Contra so it counted.  That's what the Wii should get.

EA can make the best spin-off in the world but they're still not giving us legitimate support.  That is the problem.  And it's not just EA who is doing it.

Mop it upNovember 05, 2010

I think more of a problem with Dead Space Extraction is that it was a prequel to a game on another system. In order to play the "sequel" to the Wii game, people had to own another system. If the Wii also got a port of Dead Space and/or Dead Space 2, I think it would have gone over much better.

It's kind of the same deal with Resident Evil Umbrella Chronicles. People were okay with that game because they thought that Resident Evil 5 would soon follow it. Instead, the Wii got Darkside Chronicles and that did not go over well.

Luigi DudeNovember 05, 2010

Quote from: Mop

It's kind of the same deal with Resident Evil Umbrella Chronicles. People were okay with that game because they thought that Resident Evil 5 would soon follow it. Instead, the Wii got Darkside Chronicles and that did not go over well.

What made it even worse was how Capcom used the Resident Evil 4 Wii engine to make the crappy Dead Rising port instead of using it to make an actual Resident Evil game.  And then a few months after Dead Rising Wii comes out they announce Darkside Chronicles and after it's announcement was met with outrage, Capcom acted shocked.

It's this type of bullsh!t that shows just how incompetent third parties are when it comes to how they handled the Wii.  Instead of just giving it games that people want, they give it spinoff's that no one asked for and extremely niche titles that would have done poorly on the HD systems as well.

KDR_11kNovember 06, 2010

It's like a swarm of zombies ran through the game industry, eating all the brains.

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