Tag: Losses

EA Filing Blames The Old Republic For Revenue Losses


swtor 2014-10-23 22-17-20-11

While Bioware has wasted no time discussing how popular The Old Republic is, revealing at Gamescom that over one million players log in monthly, with Super Data Research placing the MMO as among the top ten revenue generators in 2014. In fact it looks like the only people that The Old Republic is currently letting down are the executives at Electronic Arts. In its latest quarterly report, EA Games noted $454 million in revenue over the past three months, primarily driven by FIFA, Titanfall, and Battlefield 4 Premium Edition.

Not all of EA’s properties were up to projections, however, as the company blamed several of its products for a $400 million decrease in revenue.

This increase was partially offset by a $413 million decrease in revenue primarily from the SimCity, Crysis, Dead Space, and The Sims franchises, and Star Wars: The Old Republic.

SimCity and The Old Republic are both responsible for a combined $63 million decrease in revenue, according to another section of the report. It is important to note that both monetary figures are decreases based on internal projections for the quarter, and do not conclude that any of the related studios are running at a loss.

(Source: EA Games Filing)

NCSoft Q2 2012: Profits Down, Revenue Up


NCSoft has released its finances for the second quarter of 2012, and considering that the major MMO news sites suddenly care enough to report on it, I can only assume that there is some drama to be had. Compared to last quarter, revenues are up thanks to solid Lineage sales and royalties, however NCSoft is in the red on operating profit and net income due to what the company refers to as “one-off labor costs.” Here are the bullet points of important details to explain why NCSoft’s profits sunk so low:

  • Lineage sales were strong Korea, however Aion sales tanked due to “scaled back in-game item sales.”
  • Labor costs surged 27% this past quarter due to severance-pay.
  • Royalty expenses increased 35%
  • Marketing expenses were up 112% over last quarter due to Blade & Soul
  • D&A increased 28%
  • NCSoft’s acquisition of Ntreev also ended up being a major cost.

While sales in Korea and Japan held strong, sales in North America continued a slight decline over last quarter. Europe has been hit the hardest, with sales decreasing to virtually nothing (less than 1% of sales for the quarter).

The launch of Guild Wars 2 is expected to make up for any losses incurred this quarter.