After the Battlefront II debacle, EA has lost more than $3 billion in the stock market.
If you haven’t been following, the Battlefront II debacle started way before the release of the game, when EA announced that there will be loot boxes in the game. Instead of cosmetic items, the loot boxes of Battlefront II contained in-game units. Moreover, even after buying the game at full price, players were unhappy to find characters like Darth Vader and Luke Skywalker behind a paywall. When the issue came up on Reddit, EA’s comment received the highest number of downvotes in reddit’s history.
Wall Street Investors worried
Considering the turmoil EA is in, Wall Street also took notice. “The escalation of EA concessions over the past month are a potential negative indicator of pre-order sales trends and overall unit confidence,” analyst Justin Post wrote in a note to clients Friday entitled, “In-game purchases benched the night before launch.”
The shares of EA are now down to 8.5 percent. This is because investors are afraid that EA might not sell the predicted number of Battlefront II units. The game also did not do well on Black Friday sales. Stifel analyst Drew Crum expressed disappointment over EA’s Black Friday sales. This comes even though EA decided to stop the purchase of in-game crystals, which served to buy loot boxes. But EA made clear that it was only temporary, and the gamers were not too pleased about that. But EA is still optimistic about the fiscal year 2018. “This change is not expected to have a material impact on EA’s fiscal year 2018 financial guidance,” the company said.
Temporary? How about permanently? Just take a look at @MarvelHeroes , going out and shutting down all servers next month for their failures and money grabbing tactics. I love Star Wars but this could be the next failure if the real underlying greed problems aren't fixed.
— Doug Bailey (@tsstype1) November 17, 2017
This debacle has had a major impact on the industry. Even the politicians are getting involved now to curb these predatory practices. The battle between the gamers and EA is far from over right now. And it does seem that EA will recover as analysts predict that their sports titles (FIFA ultimate team) will make up for it.