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EA On Tough Holiday Season, Xbox Live Rift

Thanks to Reuters for their article discussing the Electronic Arts CFO's comments at a recent financial conference. He discussed gaming prospects for the holiday season, since "...last December, a number of publishers were forced to warn on their prospects... after games they expected would be major hits failed to meet their targets, and retailers tightened the shelf-space devoted to also-ran games", and he suggested game company bankruptcies could be on the way: "There's going to be some road kill. There are going to be people who aren't going to make it." He also made some pointed comments about Xbox Live, which EA still haven't signed up for, saying: "We're not about to support a model where the content provider does not get paid for the content provided."

10 of 30 comments (clear)

  1. Xbox live by anarxia · · Score: 3, Interesting

    If is no real benefit to support xbox live, why doesn't EA come up with their own xbox online gaming network? (not a troll, just asking)

    1. Re:Xbox live by shadowcabbit · · Score: 4, Insightful

      Because, short of tunneling, the Xbox has no online capability without Live. I know, there are ways around it, of course, but if EA tried a stunt like that-- if any Xbox developer tried to get around the Live monopoly-- they'd find their license revoked and the power of a fully armed and operational Legion of Lawyers breathing down their neck. Rather than lose out on a very lucrative moneymaker (i.e. sports games on the Xbox selling better than many other games), EA has wisely decided that they're going to simply not use Live in their Xbox games.

      Wise, but not smart. Does EA not realize how many kazillions of dollars they could gain from selling banner ads to be displayed in the game lobbies? You don't have to make them big, or have them obstruct the gameplay in any way, but if they're there someone will notice them. The fact that the Xbox has a hard drive to store and cache ads helps, too. Like I said, wise (to avoid losing more money than necessary), but not smart.

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    2. Re:Xbox live by Ty · · Score: 2, Insightful
      Wise, but not smart. Does EA not realize how many kazillions of dollars they could gain from selling banner ads to be displayed in the game lobbies?

      Ummmmmm. Since when have banner ads proved any source of significant income? Still living 1999 dotcom days?

    3. Re:Xbox live by unclethursday · · Score: 2, Interesting
      As another poster pointed out, Microsoft holds the monopoly on the Xbox Live servers. Any and all games that wish to use online play simply MUST go through the Xbox Live servers. Period.

      A good example is the Tony Hawk's Pro Skater games. They go through GameSpy for their match-making services. Neversoft and Activision probably have a decent deal with GameSpy for this.

      So THPS is online on the PS2. It's been online since a year before the official PS2 adaptor came out. But it isn't online on Xbox Live, even though the game easily could have netcode built in. The reason being that Neversoft and Activision want to use GameSpy's free service, rather than Microsoft's pay service.

      THPS isn't online on the GC either, but that probably has to do with the small installed base of the GC network adaptors over any technical hurdles (since GameSpy is also apparently making online middleware for the GC).

      To go online on the Xbox REQUIRES publishers to go through Xbox Live. If you try and allow online play without Live, then Microsoft will simply not allow the game to come out on the Xbox.

      As in all things, Microsoft wants a monopoly in how they do business. Xbox Live is how they will attempt to profit on online gaming, even if the publishers of the games see no additional money from online gaming.

      Thursdae

  2. Forgot the most important one... by DeadScreenSky · · Score: 2, Interesting

    (That's what I get for posting so late/early...)

    EA is also still trying to get MS to relent on what they want (mainly the ability to cancel online play for a game, like when its sequel has come out). That is what this is really about. Devs are perfectly able to charge monthly for their Live games (see Phantasy Star Online), which is why EA's stated claim about not being able to make profits is BS. They just want the freedom to screw over their customers more easily, which goes completely against MS' goal of making a profitable, popular online gaming network.

    --
    There is no excellent beauty that hath not some strangeness in the proportion. -- Francis Bacon
    1. Re:Forgot the most important one... by bigman2003 · · Score: 4, Insightful

      The problem I have with EA's plan of dropping servers, is the forced upgrade model. You said you were fine with Madden 2003 servers went down, because you had just bought 2004.

      I don't want to buy a new copy of Madden each year, or any other game, just so I don't lose some of the on-line support it originally came with. If this is a major sticking point, I agree with Microsoft here.

      --
      No reason to lie.
  3. Sounds like a switching of roles... by tprime · · Score: 2, Insightful

    Hmmm, Microsoft insisting that support continue for previous versions of software? EA trying to force you into upgrading by eliminating support for software that is ONLY 1 YEAR OLD. Doesn't it seem like, with XBOX Live!, Microsoft is straying from their normal business plans?

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    http://www.tomandemily.com
  4. Pity for an unpaid EA. (Not really) by superultra · · Score: 4, Insightful

    Give me a break. The CFO's statements reveal two things. First of all, he plans on charging people to play on the PS2. They're not charging now, so if he is correct and content devs don't get paid on Xbox Live, how are they getting paid on the PS2? What would he be so worried about if he isn't making money now? Obviously, EA has yet to reveal some kind of pay-to-play plan later on down the road. And based on EA's on-line "track record," I think I'll stick with Xbox Live.

    Secondly, his comment reveals EA's specific bias against the Xbox. MS *does* pay developers for content. Who's getting the bucks on Phantasy Star Online? It's Sega, a completely non-MS company.

    The problem with this is that when EA starts charging, so will Activision. So will Midway. So will [insert game publisher here]. Being benignly generous and saying that each of these services will only charge a measley $5 a month to play their games online, what if a gamer wants to play Madden 2004, Tony Hawk Underground, and Resident Evil Online? That's a possible $15 a month for a slice of the games!

    No, what bothers EA about XBL is not that they don't get paid. It's that they don't get *enough*.

    I'll admit, they have a good eye for talent, that EA. But as far as corporate personalities go, he's the successful class ring type guy in high school that no one liked 5 years later. They pretty much ditched Sega when the Dreamcast came along even though it was very much Sega that enabled EA to establish their #1 franchise. They're building up a helluva lot of bad karma, and one day it's all going to come crashing in.

  5. The meat ain't ready yet by WildBeast · · Score: 2, Interesting

    They keep talking about wanting to charge people money to play EA titles. Shouldn't they be concentrating on making the online lobbies stable and useable to begin with? I mean seriously, they talk and whine on and on yet there online support still sucks. People can barely even get an online game running and EA is already talking about money :)

  6. Re:in game game ads by Psykechan · · Score: 2, Insightful

    The people who are going to buy Madden buy it with Live support or not. Many reviewers have already said that Sega's ESPN (2k4) is better than it plus it has Live and people aren't biting.

    EA is upset that they would have to spend development costs to make MS money from a Live enabled Madden. They would rather develop a solution that makes them money on the PS2 and possibly make the definitive console leader Sony happy.

    EA is also the video game 500lb gorrila which does not give in easily. Remember that EA and Sega have had an interesting past with them giving no support for the Dreamcast because a DC Madden couldn't compete with Sega's NFL2k. This eventually added to the DC's death.

    When MS ponies up a portion of Live profits to EA, we'll see Live enabled Madden.