Former Exec Says Electronic Arts "Is In the Wrong Business"
Mitch Lasky was the executive vice president of Mobile and Online at Electronic Arts until leaving the publisher to work at an investment firm. He now has some harsh things to say about how EA has been run over the past several years, in particular criticizing the decisions of CEO John Riccitiello. Quoting:
"EA is in the wrong business, with the wrong cost structure and the wrong team, but somehow they seem to think that it is going to be a smooth, two-year transition from packaged goods to digital. Think again. ... by far the greatest failure of Riccitiello's strategy has been the EA Games division. JR bet his tenure on EA's ability to 'grow their way through the transition' to digital/online with hit packaged goods titles. They honestly believed that they had a decade to make this transition (I think it's more like 2-3 years). Since the recurring-revenue sports titles were already 'booked' (i.e., fully accounted for in the Wall Street estimates) it fell to EA Games to make hits that could move the needle. It's been a very ugly scene, indeed. From Spore, to Dead Space, to Mirror's Edge, to Need for Speed: Undercover, it's been one expensive commercial disappointment for EA Games after another. Not to mention the shut-down of Pandemic, half of the justification for EA's $850MM acquisition of Bioware-Pandemic. And don't think that Dante's Inferno, or Knights of the Old Republic, is going to make it all better. It's a bankrupt strategy."
This is a business person commenting harshly mostly about how EA is financially ran, and that they haven't been able to grow as fast as Activision Blizzard (which was a one giant merker - like Microsoft and Google getting together). His bashing about the games isn't about gameplay, their originality, or how fun they are for players - it's just seems to be about business. "Hit" would be a game that makes lots of money, not how good it is.
I actually like the way EA has been taking. They're doing a lot more original, new IP and games than some years ago - last year notably Dead Space, Mirror's Edge, Dragon Age Origins.
The thing is that Activision Blizzard has grown in to a huge competitor with their World of Warcraft franchise, Modern Warfare 2, and Guitar Hero series. All of them, btw, series that have 6+ released games. Every year a new one. And the cash cow that World of Warcraft is.
It seems he was more happy when EA was the company that didn't create much of new IP or games, but just milked the old ones every year with new versions. Now EA has changed it's route a bit and releasing such new kind of games than Mirror's Edge, and such legends than Bioware's roleplaying games. They don't probably hold such a mass appeal, but they're great games and something new.
So is Activision Blizzard now the ones that are mostly after money, and EA trying to do something new?
Never! I could never even possibly concieve of EA ever doing anything wrong in their quest to make money by milking IP to death. /end sarcasm
"Spiritual successor to Baldur's Gate" my ass. That quote was thrown around so much it lost all meaning. You can't replace Minsc and Boo.
You can say anything you like but you should be able to back up your allegations with some kind of fact or you risk sounding a lot like a 12 year old who did not get what they want. The real reporter here would be forced to ask the "EA Executive" what exactly should EA be in the business of then? The problem with the statement above is that as Sopssa pointed out, "It seems he was more happy when EA was the company that didn't create much of new IP or games, but just milked the old ones every year with new versions." Gamers get bored... Gamers are getting tired of since you know... it has been around for nearly 20 years now for example. Sports games are always going to make some money because people love being able to play their favorite teams and whip the hell outa their least favorite teams.
MMO's are going to be hard to break into because Blizzard took an award winning and fun game (Warcraft) and turned it into an online experience with WoW. SWG at one time was the leading MMO out there until Smedley took over the creative side and tried to make it a financial thing instead of an innovative and fun game by copying the best of every MMO he could find. However The Old Republic will do well in the market for multiple reasons such as Bioware's known ability to write extremely good plots in their games added to an already good name in the Old Republic series of games (KOTOR is still on the best sellers list ten years after its release).
Whom ever this EA Exec is needs to look at something along the lines of... uhm... Quake is a good one. It was by far the number one FPS game for a long time. And after Quake III its kind of died out because people are bored with it. ID still does well for themselves doing other great games dont get me wrong, but they are not the power house of FPS's that they used to be. Repackaging the same old game with updated graphics and new maps is what will get you a status quo. EA is trying to come up with something new. Its better than some other gaming companies out there.
Off subject (kind of), Dragon Age sold a ton more than expected, has released three Downloadable Content items for minimal cost (around $5 each), is working on the fourth DLC (should be out sometime in the next week or so) and has announced an Expansion. Not bad for a game thats less than 6 months old. Great job Bioware/EA. And the game rawks.
the developers are the hens and the eggs are the games
Take Dragon Age: the hen had potential but the farmer didn't give it enough free range and the egg came out bland and clichéd. I won't bother fitting the NPC-ads in to the analogy (is there a mod to get rid of them?)
One particularly unhelpful wrinkle of the U.S. version of capitalism + culture has been investors' singular motivation to hit it big and rake in the bucks and a general social unwillingness (management, the population, investors, regulators) to believe there is any social good in any business that does not generate massive returns and growth on a quarter after quarter basis.
There are simply many things that we need the economy to do that are not going to generate double-digit returns and result in world domination by a single sexy corporation. Plumbing, for example. Or reference publishing. Or wood milling. Instead of taking sustaining business + paying employees or small but steady growth as good enough within the context of also employing people and providing a necessary social good, we're happy to say "This hospital isn't giving us 20% year-over-year; it's only giving me 1%! I can get that from a damned CD! Fuhggedaboudid." And nobody bats an eyelid, everyone takes for granted that a hospital is only valuable if it's nice and profitable, otherwise it "couldn't compete" and "should" close in a free market economy.
STOP . AMERICA . NOW
It's been a very ugly scene, indeed. From Spore, to Dead Space, to Mirror's Edge, to Need for Speed: Undercover, it's been one expensive commercial disappointment for EA Games after another.
Most startups fail, but this doesn't mean we don't need startups.
An advice I read somewhere said to treat every project in your company like a mini-startup. Of course, many of those projects won't become an instant cash-cow. the secret is in being flexible, quickly recognizing failure, minimizing damage and adapting.
But if the company stops trying to innovate and create fresh products, then all you're left with slow death by milking the existing franchises. And of course, man of the best franchises started small as yet-another-risky-project for the company.
The only thing that I can remember about EA games is the logo and the girl whispering "EA Games", I can't remember what games had that "loading screen", actually the other thing I can remember about EA Games is most gamers seem to hate them.
While the marketing / advertising / PR types will probably point at my memory of the corporate logo and say "See, branding works!" the fact is that it doesn't, because the memory that I have is not a positive one.
I remember 3dRealms for Duke, I remember Raven for SoF, I remember Cavedog for TA, and those are all positive memories associated with good games.
I can't think of a single game that EA released, I can probably sit here and recite 50+ game titles, many of which may have been released by EA, but that's not the point.
Frankly the ex-exec is as out of touch as the CEO, if you are going to measure anything by my experience, but of course they don't do that do they, they measure stuff by the closed feedback loops of market researchers, also employed by EA, drinking their own kool aid.
The problem with EA is that unlike 3dRealms, Raven, Cavedog et al, they tried to make the "house" bigger than the "game", and I suspect that if you dig down to the level of the actual game workers, you will find that same corporate branding ethos at work, sure, you're all working on "Aliens vs Mario 7", but you're all working for EA first and foremost, you're all able to be switched around within EA, to "Mario vs Jar Jar Binks 3" at the whim of a manager.
http://slashdot.org/~GuyFawkes/journal
- work for EA for a while, at least until I can find a real job : CHECK
- leave the company with a nice bundle of cash and the appearance of now having insider knowledge : CHECK
- take various SHORT positions on EA stocks with the leverage of my new firm : CHECK
- write a nasty paper about how bad EA is ran, and have it published on /. : CHECK
- take even SHORTER positions on EA stock : CHECK
- wait for stocks to drop, take LONG positions and retire to the caiman islands.
Things that, from what I know about the typical EA manager character, should fit them: ...Oh, wait!
- Weapon dealer / Warlord: Fueling wars by selling weapons to both sides, just to make money.
- Pharma industry: Getting school children on hard drugs sold as medicine, just to make money.
- Competition for Monsanto: genetically engineer slowly killing plants and make the whole world plant and eat them, just to make money.
- Music industry: Artist extortion and media reproduction, just to make money...
Any sufficiently advanced intelligence is indistinguishable from stupidity.
This is correct. What Mitch Lasky does not seem to understand is that these new IPs don't have to be immediate monetary successes. They are investments in the future. To understand how that works, one only needs to look at EAs past. They got into the current situation by not starting enough new franchises. Eventually, yearly updates to established franchises were not enough for EA to sustain their business. Hence, EA is failing because they did not invest in new IPs in the past, not because they invest in them now.
Activision is now going down that same path. They made a ton of money with risky, interesting new IPs such as Tony Hawk's and Guitar Hero. Now that they are on top, they're milking these franchises for all they're worth, but not investing in new, interesting franchises they can milk in the future - they're doing exactly what EA has been doing five years ago, and they will end up in the position EA is right now.
People like Mitch Lasky got EA into the position they're now. These people are the cause of EA's problem, not its solution. They need to shut their pie holes.
The game industry is no different than the movie industry. Both prefer releasing sequels to proven cash cows rather than originality. When film and movie historians review and categorize films and movies they will discover a lengthy period of rehashed plots and themes beginning in the 1980s. Given the choice I watch old movies, often in black-and-white, instead of the garbage on the "Big Screen."
I think we've missed his point. EA continues to make very expensive "disc based" titles when things are going to "download only", thus cheaper (take a look at iPhone 1.99 games... Good luck selling a $9.99 app). The article said that EA thinks they have 10 years he thinks 2-3 years. Whether he's right or not, who knows. If he is correct then EA can't keep spending $50mil per title. People pay $60 per game because they can trade them in for $40. What happens when "download only" does not allow tradeins? The price of games will need to drop. (eg. Music Cds used to cost $20 now I find most for $10.). All $ Canadian.
EA: Patch Everything
Why get it right the first time when you can release a dozen 500MB patches?
EA really is in the wrong business. With their skills they can make more money in racketeering.
Apple has "Mac vs PC", Microsoft has "Laptop Hunters", Linux has recession
But now your putting a bit to much blame on EA. DICE is the studio that made it. Even though EA is renowned for putting shit loads of pressure on there studios, DICE are still the once that made an extremely buggy game.
Specially when DICE is the LEAST affected of all EA studios. Fuck DICE is even listed as its own "country" on jobs.ea.com, because of there freedom to move and produce.
So according to the parent we're on the 6th iteration of World of Warcraft? Even if you count the pre-decessor Warcraft RTS games then WoW is only number 4. If you take Diablo, WoW is really WoD, then we're only on the 3rd iteration. But then the parent also ignored Diablo, Warcraft and even Starcraft so we probably shouldn't take him too seriously.
Bad analogies are like waxing a monkey with a rainbow.
Just so we're on the same page here, would you agree or disagree that Battlefield 2 was astoundingly good when it wasn't crashing?
You are awash in a sea of fiercely stated opinions. Obvious exits are: 'File->Quit', 'Reply', and 'Page Down'.
we, the gamer community will make sure that noone buys your games. hear and heed.
Read radical news here
It was a great game that included more aspects (guns, ground vehicles, helicopters, aircraft) than just about any other multiplayer game. The quality of the software and service tried my patience though.
behold mount and blade, one of the last year's stars http://www.taleworlds.com/
the creators are a husband and wife from turkey, who left their daytime job some years ago to chase this dream. they didnt have any capital, they didnt have any investors. instead, they made their prototype, gave it as shareware, and asked people to support/contribute. a few years later, you have the game. at no point any investment got involved, and they only sit down with a publisher (paradox) after the game was complete.
the game much less rivals pirates in the hybrid/open ended scope, but passes in a medieval feudal world, with unprecedented (common consensus of all gamers and critics) mounted combat. turns out they also have been able to incorporate strategic, roleplay, and rts elements too.
they got high reviews last year in all prominent online gaming magazines.
this alone proves fun, vision beats the hell out of investment and the 50 million dollar budgets you are talking about there.
gaming died when wall street entered into it. it will reincarnate when enough number of players realize gamers and wall street dont mix well together.
Read radical news here
E... A... SPORTS! PC's are lame.
Filter error: Don't use so many caps. It's like YELLING. Filter error: Don't use so many caps. It's like YELLING.
Finally had enough. Come see us over at https://soylentnews.org/
Fuck, I meant to say "Ports."
HARDFAIL.
Finally had enough. Come see us over at https://soylentnews.org/
So after churning out a decade's worth of craptastic software somebody more or less important finally caught on to their scam? This only a few short years after the general public caught onto their scam, causing a drop in sales and consequently bringing on cries of, "Oh noes! PC gaming is coming to an end!" and, invariably, "OMG PIRATES!" I'm guessing we'll see a few more years of EA squandering its IPs, putting out bug-ridden, graphically intense, empty gaming rehashes of previously successful games before all of its investors and high level crooks move on to start the cycle over again somewhere else.
mmmm...forbidden donut
Although not entirely responsible, EA should be prepared to take the blame when they slap their unskippable "EA: Challenge Everything" logo screen at the beginning of a game. DICE may just have written the code, but EA is the common denominator for games that tend to suck on a technical level, so people will almost always blame EA.
Wow. Someone on slashdot.org makes a threat to EA. I'm sure they're reading it. And that they're terrified. I mean, I'm sure that if they screw up Bioware, MILLIONS of sports gamers who don't give two pennies about the types of games Bioware makes (mostly RPGs), will stop buying their sports games. Fans of The Sims, everywhere, will stop buying any Sims games. Nobody will buy any EA games at all because they screwed up Bioware. All because you prophesied it on slashdot.
Don't get me wrong, I have liked several of Bioware's games in the past, and it seems like EA is already starting to screw them up, and I'm not too happy about it, but seriously, neither you nor I have the power to make sure that no one buys EA games.
Shareholders would like a return on their investment. That is completely understandable.
The problem comes in when a company is in a mature state (Microsoft comes to mind) and they are a publicly traded company. You have to raise profits.
If a company was privately held, they, if they wish, is to be content with steady profits. Maybe more companies should go private.
I mentioned on another post that Microsoft has waisted billions trying to get into new markets when they would have been better off just giving the money to their stockholders.
Except for ending slavery, the Nazis, communism, & securing American independence, war has never solved anything.
Remember Archon, M.U.L.E and Pinball Construction Set?
EA games DRM denied access to a game I purchased on my machine because I had Alcohol 120% installed, In deciding on that invasive course of action to protect their software, they lost me as a customer.
If I buy the disc, and the disc is in the drive, don't lock me out of a game over your sense of ethics. Refund my money, and take the product back instead.
_ _ _ Go for the eyes Boo! GO FOR THE EYES!
BF1942, Command & Conquer, Ultima
DICE, Westwood Studios, Origin/Richard Gariott (Let's be honest)
EA Games destroyed all these franchises and reduced what were great games into the crap we have now. That is why there is such dislike and hatred geared towards EA games from longtime gamers. They take successful games, remove the core developers that made them great in the first place, then run the series into the ground, squeezing out as much revenue as possible.
MW2 is a pretty good game they deserve it. Just saying..
Loved this game. Thought it was genius. The gruesome death scenes were down-right though-provoking. Eeeesh.
Did anybody else form the opinion that "Mirror's Edge" refers to powder substances which might accumulate around the edge of the mirror? I noticed in the first scene, after meeting up with your sister and then running -- that Faith runs through a room filled with crystal artwork. ;)
Loved this game. Thought it was genius. The gruesome death scenes were down-right though-provoking. Eeeesh.
;)
Did anybody else form the opinion that "Mirror's Edge" refers to powder substances which might accumulate around the edge of the mirror? I noticed in the first scene, after meeting up with your sister and then running -- that Faith runs through a room filled with crystal artwork.
That's too bad, because I really like the games EA have been making lately. Dead Space and Mirror's Edge are great, and Dante's Inferno is not bad either, from the demo. Mirror's Edge especially was my favorite game of 2008.
"The movie industry can do this because its more or less part of the build up, and for the enthusiast, its just another reminder that this movie is made by the awesome studio, ."
The movie industry is required by the Directors Guild of America to have the opening credits displayed in a certain order. The gaming industry has no such requirement.
As an aside, I don't think the name of the companies that worked on the movie are of any interest to the average moviegoer, and therefore usually detract from the pre-movie "build up" rather than add to it.
Electronic Arts actually made good, original, fun games and didn't shovel out shit year after year. This "EA Games" is the polar opposite.
I remember when I was growing up if you found a Sega Game with a Yellow Tab on the side (indicating it was an EA Game), you could almsot bet it was going to be a badass game. I guess some of you never experienced the glories of the yellow tab Genesis games. I've had several friends agree with me. Although recently EA just seems to buy up companies and bastardize the games. I'll never forgive them for what they did to Origins with Ultima Online. After EA bought Origins the game went to complete shite.
T&A just don't move games like they used to. They need to offer gamers something they just can't get easily online:
http://www.duelinganalogs.com/comic/2009/12/29/family-matters/
Sorry if someone else posted this already. I didn't see it.
I will gladly pay for DVDs or Download for battlefield 3 for PC.
Just make it already.
You are wrong. Underground was not worth the time it took to install.
a) Imagine driving a real car with keyboard.
b) very few after the patch
c) never happened to me
d) never happened to me
e) never happened to me
f) Instead of fudging up the car to get the stats right, they focused on getting cars that handles like cars (instead of bobsleighs)
Can't say its the best game in the genre but at least its a good heir to Sports Car GT (its even the same game engine even if a later generation) and surely by far the best NFS title ever.
It is also the best attempt so far to give arcade and realistic handling in the same game. Even on easy the car feels like a car.
I'm glad that EA are finally feeling the pain for repeatedly screwing their own customers. I bet that EA management are still blaming the economy or something else rather than having to face the blatantly obvious fact that its their own fault for putting massively restrictive DRM on all their products, and assuming we the consumers are stupid enough to let them get away with silently installing rootkits on our PCs.
Taking over your whole PC and also limiting the number of times we can ever install the product we paid for is a massive abuse of our rights and just downright bloody insulting. The worst thing is that even after the lawsuits against EA and enormous backlash on most gaming forums about Spore DRM, I believe EA are rubbing our noses in it by continuing to use almost as bad DRM on all their new games.
I'm sure EA management will incorrectly conclude that declining sales of EA PC games show PC gaming in general is dead, rather than having to face that they made their own products suck.
Five years??? EA has been in the business of producing the same product with new names and faces for at least ten years now, if not longer. How long have their various NBA/NFL games been selling a new version every year?
including one that allowed this guy to branch off into investment business. 400 million for ringtone business? cretins
These acquisitions of late were only bringing new slates of arrogant self-promoters, shitting on existing infrastructure.
1.A corporate world and big shareholders who only care about the next set of numbers are and refuse to accept that short term flat or negative growth that leads to long term profit can be an acceptable way to do business.
2.The lack of a "middle ground" in games. In the movie industry you have blockbusters that make the big bucks (and cost the big bucks) and then you have lower budget films that dont necessarily need to make big bucks to recover their investment plus you have small niche films made on the cheap outside of the mainstream
In the games industry you have the small casual games (things like PopCap games, some Wii titles, various DS titles, iPhone games etc) and the big expensive "every model has to have more graphical detail than anything the other guy has" blockbuster type games. There are no middle-of-the-road games that are bigger and more engaging than the casual games but not as horrendously expensive as the blockbusters. There are plenty of mods out there for various titles that show the kind of games that can be made if the industry was willing (the kind that dont need thousands of man-hours worth of content)
3.An unwillingness to experiment. In the movie industry you have a lot of films that were green-lit even though they were different from what came before because the industry was willing to take a chance. The games industry doesn't want to experiment anymore in the way pioneers like Shigeru Miyamoto, Sid Meier, John Carmack, Will Wright, Peter Molyneux, Richard Garriott and others did.
The industry needs to start making games that dont cost huge sums of money to make, dont require thousands of dollars of computer gear to run with all the options set to "max" and dont require an always-on internet connection just to play the single player. I am sure many people would play such games if the gameplay was good enough (I would)
I'm not sure why the mention dead space as bad, as i recall it being somewhat of a success, it had scores right around 7.6-8.0/10 so that's a critical success IMO. If i where EA i would sit down the dev team and have a nice discussion over fixing the flaws the game did have and not removing the good stuff it already does have and going from there. If EA would just put a little more heart into it, they could have blockbuster titles like Fallout and Half-Life 2 (we know why those games are good, and that's because Valve and Bethesda actually give a damn about releasing a great game). Crytek should go back to Ubisoft i think, EA doesn't deserve a hit title like Crysis 2.