Tag: Stocks

Consumer Outrage Hurts Stocks, Wipes Out $3.1 Billion In EA Value


It’s not just Disney and consumers who have a reason to be angry at Electronic Arts. Following a consumer revolt over its aggressive microtransaction strategies in Star Wars Battlefront 2, and despite Electronic Arts showing major growth over the past year up 52% year over year, its shares took a tumble after news that the December quarterly sales forecast would be lower than expected due to the performance of Star Wars. Shares of Electronic Arts were down 8.5% through Tuesday, knocking out $3.1 billion in shareholder value.

Physical sales of Battlefront II in the UK dropped at least 50% in the first week, while none of the versions of the title have hit the Amazon top 100 for 2017, which happens to be populated by titles including Mass Effect Andromeda, Splatoon 2, and Horizon Zero Dawn. Analysts are not happy, both with physical sales of Battlefront II as well as

“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.

Electronic Arts CFO Blake Jorgensen stated in a speech at the Credit Suisse 21st Annual Technology, Media & Telecom Conference that EA avoided cosmetic microtransactions due to limitations on the franchise canon.

“The one thing we’re very focused on and they’re extremely focused on is not violating the canon of Star Wars,” Jorgensen said. “It’s an amazing brand that’s been built over many, many years. So if you did a bunch of cosmetic things, you might start to violate the canon. Darth Vader in white probably doesn’t make sense, versus in black. Not to mention you probably don’t want Darth Vader in pink. No offense to pink, but I don’t think that’s right in the canon.”

EA’s microtransaction strategy has been incredibly successful in its sports titles from Madden to NBA and Fifa, however the recent expansion of said practice to titles like Battlefront and Need for Speed resulted in a large push back from consumers that executives may not have expected.

(Source; CNBC)

Funcom Former CEO Under Investigation, Insider Trading


I’m happy to see that I am not the only person who was baffled when Funcom’s CEO Trond Arne Aas suddenly up and flew the coup before the launch of The Secret World. As many of you already know, Funcom’s stock tumbled following the launch of The Secret World, from $17 to $2.23. Luckily, and perhaps in a well timed move, Trond was able to sell off 650,000 shares, possibly with the knowledge that The Secret World would fail to meet even Funcom’s lowest expectation of sales.

And if you are thinking, “gee, Omali. That sounds a lot like insider trading,” you would be correct. According to an insider at Funcom, reported to The Escapist, Trond Arne Aas is under investigation by Norway’s Financial Services Authority and OSE. Aas is claiming that, as he had stepped down as CEO, he had no access to sales figures until Funcom posted its latest financial details.

The source states that he would not be surprised if Aas ultimately winds up in jail.

(Source: The Escapist)

Funcom's Shares Tank After The Secret World Launch


This week has certainly been interesting for Funcom. The Secret World launched earlier this week to be met with mostly positive reviews by critics.  On the eve of the game’s launch, however, Funcom’s CEO Trond Arne Aas resigned his role while staying on as a strategic adviser.

“The company’s financial position is strong and the foundation of the company’s long-term product and technology strategy is in place. It feels like a very natural point in time for me to make the transition to a new and freer role in the company, but I will remain committed to the Company both as a major shareholder and as an employee.”

In the past week, Funcom’s stock has dropped nearly 40%. Shares started the week out at $2.85 and since dropped to $1.73.

(Source: Gamespot)

Funcom’s Shares Tank After The Secret World Launch


This week has certainly been interesting for Funcom. The Secret World launched earlier this week to be met with mostly positive reviews by critics.  On the eve of the game’s launch, however, Funcom’s CEO Trond Arne Aas resigned his role while staying on as a strategic adviser.

“The company’s financial position is strong and the foundation of the company’s long-term product and technology strategy is in place. It feels like a very natural point in time for me to make the transition to a new and freer role in the company, but I will remain committed to the Company both as a major shareholder and as an employee.”

In the past week, Funcom’s stock has dropped nearly 40%. Shares started the week out at $2.85 and since dropped to $1.73.

(Source: Gamespot)

Star Vault Summons League of Extraordinary Investors For Meeting


The Board proposes that the AGM resolve in order to enable the Board to provide the company with working capital to authorize the Board, during the period until the next AGM, to decide on the issue of a maximum a number of shares and / or convertible bonds and / or warrants entitling to convert to each new subscription, or involves the issuance of a maximum a number of shares to an amount not to exceed 2 million…

Looking to buy stock in Star Vault? They are looking to sell. Announced in an investor’s email, Star Vault will be holding a meeting on January 13th to discuss and vote on the sale of up to 2 million more stocks in order to acquire more “working capital.” The board notes the obvious downside of issuing these stocks, namely that it will dilute the value for existing stockholders.

The measure requires two thirds of the board to vote yes before the new stocks can be sold.

(Source: Translated Release)