The recent micro-transaction controversy has turned some fans away, sparked debate about gambling to the point some are calling for legislation. All of the negative press has lead to poor sales over the busiest shopping weekend of the year, and cautious investors have taken their cash elsewhere. Check out this piece from CNBC to get up to speed.
Electronic Arts' shareholders are running for the hills this month and for good reason.
The company's profitable business model is now at risk after angry gamers revolted over its aggressive in-game moneymaking strategy in "Star Wars Battlefront II."
EA's stock is down 8.5 percent month to date through Tuesday compared with the S&P 500's 2 percent gain, wiping out $3.1 billion of shareholder value. Its competitors Take-Two and Activision Blizzard shares are up 5 percent and 0.7 percent respectively during the same time period.
After EA gave a December quarter sales forecast slightly below Wall Street estimates on Oct. 31, some analysts suspected it was due to the "Stars Wars" title. The shares fell 4 percent the following day.
Then an uproar began after details about the game's character progression were revealed, a system so tedious players are resorting to rubber bands on controllers to acquire credits to level up.
The gaming community flooded social media and Reddit with thousands of negative posts, saying EA is unfairly compelling consumers to spend more money through micro-transactions for content that should be part of the initial $60 game price.
The controversy seems to be hurting the sales of the game, which was officially released on Nov. 17.
First week U.K. physical game sales of "Star Wars Battlefront II" declined 61 percent compared with "Star Wars Battlefront" from two years ago, according to GfK ChartTrack data. And the game is still not on the top 100 list of Amazon's best-selling video games year to date as of Tuesday.
One Wall Street analyst is also not impressed from his checks during the recent crucial holiday weekend.
"We were underwhelmed by sell-through for Star Wars: Battlefront II (EA) over the Black Friday weekend, which follows a controversial launch for the game," Stifel analyst Drew Crum wrote in a note to clients Sunday.
The ForceCast is our popular Star Wars podcast that features news, commentary, interviews, and discussion about the Star Wars saga! Listen Now!
1/17 - James Earl Jones
Rebelscum.com provides the latest in collecting news. The site features up-to-the-minute news and images, coverage of Star Wars conventions, several product databases, countless reference galleries and archives, and more.Visit Now!
Jedi Journals is the longest running Star Wars literature podcast in the galaxy. Listen Now!
Entertainment Earth was started in a garage in 1995, and has since become the "go-to" source and experts for the latest and greatest action figures, bobble heads, toys, gifts, and collectibles! Visit Now!
The IndyCast is the world's most popular Indiana Jones podcast! Ed Dolista and his team take a look at all the latest news, reviews and interviews! Listen Now!