Tuesday, November 29, 2011

Bobby Kottick Says EA Can't Make A Profit With Star Wars The Old Republic


Activision's CEO, Bobby Kottick, poured cold water on EA's Star Wars The Old Republic by stating that it is impossible for EA to profit from it. VG247 reported based off of speech he made at the Reuters Media Summit. He said "We’ve been in business with Lucas for a long time and the economics will always accrue to the benefit of Lucas, so I don’t really understand how the economics work for Electronic Arts". He put EA's chance of success as incredibly slim "If you look at the history of the people investing in an MMO and achieving success, it’s a small number." The idea that Blizzard's juggernaut is the only successful 'traditional' business model MMO may not exactly be true although not without its merits either. EA are claiming they only need half a million subscribers for the project to be successful, which I highly doubt considering the estimated amount they spent on it(a cool USD$100 million). Mainly, I think this is just plain ol' business posturing by Mr. Kottick to lower investors expectation on a competitor propects. Some of you have been playing The Star Wars The Old Republic beta recently. So what did you guys think? Is it a guaranteed success?

Source: VG247

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