What The Cuts Could Mean for EA Sports

by pastapadre
Posted November 14th, 2009 at 2:31 pm

The recent job cuts at EA are unlikely to have much if any effect on the majority of the yearly sports titles but one aspect of the company’s new strategy could very well change the landscape of sports gaming. EA is cutting the bottom third of their software lineup based on potential profitability. While that mostly applies other divisions of EA there are some games under the EA Sports label which could be reevaluated based on current sales and future prospects.

EA has already gotten rid of Nascar from the slate and experiments like NFL Head Coach are not going to return. We’ve also seen the arcade offerings shift to the downloadable only method and that is likely to continue. There is the possibility of the WWE license being picked up and in a couple years EA will be back with an MLB game. The yearly sports titles are very lucrative with EA going out of their way to state that they are protecting them and most are going to be just fine but clearly there are some changes on the way.

Safe
Madden
FIFA
NCAA Football
EA Sports MMA
NHL
Tiger Woods
EA Sports Active

In Danger

NCAA Basketball – College basketball games have never sold well, thus why 2K Sports dropped their College Hoops franchise. The question now becomes whether there is enough support for even one game. NCAA Basketball is probably the most likely of these titles to get cut after this year unless the sales come in and are encouraging. Support for NCAA 10 in areas such as marketing have been weak and it almost feels like it has been sent out to die. That is not a good sign and the resources put into the game have clearly been limited. There is a legit chance that there will be no college basketball game out next year.

NBA Live – The top 20 NPD was released and NBA Live 10 did not even chart with the 360 version. That means the 360 sold about 100K leaving it to finish behind Madden 10’s third month and FIFA 10 on the PS3. Essentially it has gained little to nothing in sales while falling considerably farther behind the competition and now owns just 32% of the NBA gaming market. The cost of the NBA license and the money invested in this franchise has been heavy the last couple years.

If Live survives to have a Live 11, which indications right now are that it will, that will probably be the make-or-break year for the franchise. After gaining some ground this year in customer perception if it does not start to show significant progress in sales it will quite possibly be gone or there may be a reinvention to offer something totally different than the competition.

Fight Night – The first three iterations of Fight Night were huge. Then came FNR4 which never got any positive momentum and disappointed in sales. Signing boxers individually is costly. Sharing some resources with MMA will save some in development costs. Fight Night will probably not see a big revamp the next time around like it received for Round 4 to try and turn more of a profit. I don’t think Fight Night will go away as it will keep the every other year rotation with MMA but the resources may be regulated better next time around.

Madden Wii – No matter what EA does with Madden on the Wii it just can’t gain any traction. Despite the console continuing to sell at extraordinary rates Madden actually dropped from a meager 150K-ish opening month for every year of the Wii to just 60K in the first month this year. The NFL license may require that EA produces a game on the Wii and if they continue to force that look for the game to try something completely new yet again. It could just end up being a collection of mini-games which is about all that sells for 3rd party companies on the Wii.

Likely Cut

Grand Slam Tennis – Was originally planned to come to the 360 and PS3 but after a lukewarm reception on the Wii the momentum stalled and it was indefinitely delayed. Based on their comments a game like this would not make sense.

Tags:

Ricky

Hope that Live keeps being made. Look at all the problems 2K10 had and that is with competition. Im scared to think of what the quality and customer service would be if they had none.

Mark

just look at the MLB 2K series. There is your answer to no competition.

rizzled

its a shame that live didnt see results when the game is so much better than last year. arguably better than 2K10 but at the least it works as advertised. hope this isnt the beginning of the end for Live cause 2K is clearly not able to handle all the users they have now. imagine if there were all those Live sales added on. their servers wouldnt just not work theyd explode

kbailey7

I hope NBA Live and NCAA Basketball are able to survive and not be cut. NBA Live 10 is very good this year and NCAA 10 looks promising.

JohnZapp

ya i agree. screw the ncaa football its terrible. bring back MLB!!!!!!!!!!!!

cavs23win

yeah college football is the weakest of all the games right now. it just dosent stack up.

TRED

NCAA Basketball is dead already. If we didn't visit this site or somewhere like OS would anyone even know it was releasing or care about it otherwise?

Sidewinder

It's weird because this year's Live was actually decent. I know 2K has pretty much established itself already as the top game, but I didn't expect Live to do that bad.

One thing's for sure though, it's going to be really interesting to watch how they approach making this next game when they know the franchise is on the line.

cavs23win

yeah, they should fix the animations. Live is a great game. they lack in player models and animations. that is it. 2k mops the floor with them in only those two areas. They fix those two things and its a day one purchase for me. otherwise its 2k for me again.

GURU

HAHAHA....2k 10 is not a great game but it is a solid game. NBA Live 10 is utter garbage and has been for a long time. Those of you who defend it are just into arcade basketball and that is fine. but real gamers which make up the most users like 2k because it represents the game better on the court

Yea their online sucks but the game is tight and live might not have on line issues but what is the point when the game sucks.

Live 11 will be it because people are not going to buy that garbage next year no matter how much pasta hypes it

Is a shame because i love ea and madden...but live is utter garbage but i guess is good for those 12 year olds who like to cross over with yao ming....

larry

obvioulsy you havent played Live 10 because it is more of a sim than 2K10 is. though the patch helped 2K10 some in that area.

@DjNunez09

how is live "Arcady?" its a ball Sim just like 2k, if it was really Arcady it would be out for the wii or something. i haven't gotten any game yet and based on the demos (ps3) im getting live it just plays realer and the control scheme is way easier. now the reason im getting live besides that is game play, that's what they focus on and succeed, all 2k focuses on is presentation and THEY too succeed. but to me game play is more important than looks. For example in 2k, on a fast break the players just stop running. and offense and defense in the paint is just stupid[youtube h__T2bwiNic http://www.youtube.com/watch?v=h__T2bwiNic youtube]

gee

this guy is too much!!! that's classic - this should be a commercial.

Skihawks

Let's keep it real....All video games are arcadey. No game will ever emulate the real thing because these are games.....Tired is the way I see people's bitching about how unrealistic games are. They aren't realistic because the things you see on TV aren't real people....

People take this shit way too far. Appreciate what we have...

Rogue_Scientist

That's why the term "realistic" exists. It's not meant to convey the idea that something is a direct copy, picture perfect representation of something when discussing art or media. It simply means the experience offered or visualization you can see is a successful attempt at emulating the real thing.

Mark

obviously you haven't played LIVE 10. And you have the wrong EA game being garbage....it's called Madden.

mark-nis

I completely agree with you. It is a shame that people actually think Live is a better sim than 2K10. That guy who said that must of never played real basketball. NBA Live looks like the NBA if it were in a damn looney tunes episode. 2K10 had problems initially but since the patch has proven that it is still the ultimate basketball game, you know, to people who want a realistic attempt at the sport. LIVE ALWAYS HAS BEEN AND WILL ALWAYS BE GARBAGEEEE!!!! I hope that LIVE is shut down next year.

Skihawks

Pasta,

Would EA consider to have games with slow sales maybe go the way of digital distribution versus the retail copies? I would think that the manufacturing of discs, packaging and shipping would be a huge cost that could be cut through digital distribution.

This could also mean that EA could sell these games for $49.99 (possibly) or cheaper yet keeping these games that do have support from dying. I am pumped for NCAA Basketball 10 and would hate to see that go. And to think that NBA Live would not return? Man, that is crazy. I have been playing EA hoops games since Lakers vs Celtics on the Genesis....

pastapadre

I dont think we're close to that happening, it would constrict the potential sales still too much. Not only would people need an internet connection but they'd also have to own a large enough hard drive which on the 360 side would eliminate some too.

I wouldnt be surprised to see that moved towards for the next generation of consoles though.

Skihawks

But if the games aren't selling that well to be placed in a category of potential extinction, how many people without an internet connection would impact digital distribution sales? Honestly, I am not up for digital distribution, especially if the games are $60.

I would hope that EA would consider other avenues before axing franchises, especially those that have been around forever. Maybe cut the disc production in half and also offer it as a digital download for $10 cheaper....Just trying to think of ways to save options for gamers....

Ovr23

Digital Download didn't cause MS to release games on demand any cheaper than retail.

Skihawks

Sony sold Warhawk and Lair cheaper via digital download.

Rogue_Scientist

Warhawk was a MP online-only title, the game was not considered a full retail release except the box version which did include a headset. Lair on PSN? That never happened. Games that did show up on PSN (we're talking full retail here) such as Burnout Paradise (EA published) were released at the same as the standard retail price at the time. Burnout is also on Games on Demand, it's not just MS published games on there...

steve heredia

wouldn't make more sense to release a game every two years and just have a roster update for the off year. i mean, it would save them (and us) money.....and they could release a better product every two years than every year.

Skihawks

Off topic...Sorry if this was reported before but the NCAA Basketball demo is up for PS3....

N/A

and profitability will continue to decline well into next year, not necessarily because of the economy, but because there is no leadership within the EA organization. The company has gone downhill ever since 2006, and has continued to decline. EA has proven time in and time out that they SIMPLY DO NOT CARE about its customer base. And that they walk around with their d***s over their shoulders because they have the license for the NFL. Guess what, since the beginning of time, you MUST take care of your customers to sustain profitability. EA does what it wants without regard to its customers opinions and it is finally starting to hurt the company. Now just wait and see what will happen when we REFUSE to PRE-ORDER Madden 11. Look Pre-Ordering does nothing but gives your money to EA sooner, but you still receive the game at the same time. WHAT IS IN IT FOR YOU?? If you pre-order then you should receive the game before others...but you don't. There is no consideration in a contract sense. They get a deposit and your money meanwhile you get nothing. When have you ever encountered a Wal-Mart or Target running out of the game? If one has, then go to another store down the street and they will have it. UNTIL YOU START GETTING A BENEFIT FOR PRE-ORDERS, STOP NOW.

JOIN ME IN BOYCOTTING PRE-ORDERS FOR MADDEN 11 NEXT YEAR. WE WILL BE HEARD!!!

Lake Allen

Disagree. Ever since Peter Moore arrived a couple years ago the company has turned around. I cant think of any franchise that is worse off now than before. NCAA Football maybe but Madden, Live, NHL, FIFA, are all either close to being or are good enough to be considered fantastic games.

Skihawks

Are you serious....These are video games, not life....

Ovr23

Some people put on facades here just for attention...considering his history I'm starting to think he's just another Mo Diddley.

N/A

or educated in business. this is real life, what are you talking about? I am not complaining about the game you ignorant soul, I am criticizing EA's business practice. I think you are the one stuck in the video game world if you cannot see bad business practices from EA. I'm analyzing the big picture here and giving a fresh prospective on the business side.

Let me ask you. What do Pre-Orders do for you? You get nothing out of the deal, yet EA and the store you purchase the pre-order from gains everything. If you pre-order the game, and give up your money for nothing up front, don't you think you should incur a benefit? Like receiving the game early? In accounting terms, you are giving up interest you could be drawing on your money, for nothing. Stores don't EVER run out of games, name the last time it has happened? I'm thinking MAYBE grand theft auto 2 for ps3. It simply doesn't happen anymore.

Your purchasing power is decreased, its a theory called "Time Value of Money." Look it up, do some research, gain some business acumen then come have an argument with me. Problem is, my logic is not flawed. Moore could inform pasta as to why we are still waiting on a patch, and why EA backed out of roster update consistency that they PROMISED this year, AND why you don't receive anything for your pre-order. You are just another EA/Corporate troll. An educated mind is an objective mind. Peace.

Ovr23

Actually, to talk about the video game market you need to actually know something about it. I do not deny you have business knowledge, but you generalize about things you admitted you aren't even a part of (you only buy Madden).

Pre-order bonuses are quite abundant now, including many cases where you can NEVER get the bonus any other way. Also, in the case of most MMO's, you not only get items that can't be gotten any other way, but they DO offer a "headstart" to play the game before people who simply pick it up in a store after the initial release. EA has past association with MMO's and another upcoming (The Old Republic), so this is relevant.

Your argument works for Madden and other big budget titles, but a place like Gamestop only orders a certain amount of the lesser "in demand" titles and sometimes entirely bases their stock upon how many pre-orders they get. You also can't always get the game on the release date unless you pre-ordered. Going down the street doesn't always work because Wal-mart and other non-gaming specific retailers do not carry the same variety of games nor do they always get games at the same priority level (i.e. on the first day Gamestop has it available).

If you pre-order EA's next release, The Saboteur, you get an in-game knife for stealth kills. The next Army of Two Game, there's a new MP-exclusive mode that won't be available to anyone except pre-orders until a month after release. Considering the Madden demo did encourage people to pre-order (and yes, you can cancel and get your $5 back if you complain enough, hell I did just so I could get the game a week early at a mom 'n pop store) there is no doubt there will be another pre-order bonus next year.

I just didn't think it was possible for anyone to be serious when their entire argument is based on blanket statements and pointless ad hominem insults.

Skihawks

People overstate pre-orders. First, if you pre-order a game you are not committed to purchase it. Most people pre-order the game for a few reasons:

1) The game is a hot commodity and the buyer wants to ensure a copy on the release date

2) Pre-ordering is a form of layway, so to speak. You can pay a little each month until the game is paid in full prior to release

3) Some companies are offering little bonuses when a game is pre-ordered

Again, if you pre-order a game you can choose not to purchase and get your money back. It's not like that money is lost or the publisher is really making a huge deal. I think pre-orders are more to give the publisher an idea of demand.

N/A

I am not complaining about other video games, the industry or big business. I am criticizing EA for their practices regarding Madden. In general, people usually buy Madden from Best Buy, Target or Wal-Mart. You pre-order at GameStop for what, just to wait in line to pick up your order when it comes in? As far as I know, Madden DID NOT offer any bonus for pre-ordering this game, nor did any BIG BOX retailer. My point was, WHY pre-order Madden? Why pre-order it and give EA a competitive advantage on analyzing its sales ahead of time when EA fluctuates and abandons its promises to its end-users? This is simply about EA abandoning a strategy (weekly updates promised + patch 2 promised awhile ago) and then NOT explaining the abandonment to its end-users.

If something came up, then that is fine, just don't be so arrogant not to communicate the change in strategy to your customer base. EA chose to make producer blogs to communicate to its end-users and expected end-users to rely on these blogs for information (and it was a marketing/sales strategy, hoping to gain users if they could communicate directly to them). EA has the means to communicate changes in strategy to its end-users but choose not to...but why? Is it only a one-way street? EA producers made a blog to increase sales for Madden 10 (blog started with Madden 2009) but then just gave up on it once they got their results?

My complaint is not about tatoos or chin straps. I could care less. I could care less if updates are quarterly (which is probably more efficient anyway). My complaint is EA's way of practicing business. Their profits are going down because of their bad business practices. My hope is to raise awareness to end users and to Madden Producers so maybe they consider being more considerate to its end users by simply communicating a strategy and then sticking by their word.

I am sure come customers bought this game with weekly updates in mind, and then EA just stops? That is not fair, in fact, it could be construed as a method of false advertising to generate sales. Pasta even agree's on this issue that customers have a right to be upset with EA by this abandonment.

BOYCOTT MADDEN 11 PRE-ORDERS!!!

Ovr23

The Steelers-Cardinals demo was for pre-orders only...that did affect interest in pre-ordering instead of simply buying it in a store. Hell, people were selling the codes through certain online services.

I'm not sure what you're whining about in regards to the producer blog, it's still there and gets updates sparingly (not that there's much to discuss at this point as they are still planning '11 and patch 2 is still in the certification process). There is another Madden blog (located on the official site), which is where roster update information and other minor news about the game can be found. You can also find out information from some of the devs through twitter or OS Forums, although their posts are rare now because of senseless insults that people such as yourself throw at them.

N/A

ok so you are not sure what I am complaining about? Wow you must not be able to read you bumbling idiot. I have clearly stated several times the main issue is EA promising weekly roster updates and then going BACK ON THEIR word...Maybe if I capitalize the issue within a sentence you can locate it, and then logically analyze it and think objectively about it. They broke their word on something that probably influenced people's decisions to buy the game and then did NOT EXPLAIN why they did this. Get it? And your logic about the demo is simply ridiculous. Why would someone pre-order a game to get a demo code...don't you see something wrong with this? Demo's should be offered for FREE, as other games offer theirs for free...Wow, EA already has you under their spell...I wouldn't be surprised if you worked for them with your logic. Demo's should be free as they help users decide if they want the game, a customer should not be forced to pre-order a game (and in effect pay some money towards it) to use a demo...You should just stop replying, you have faulty logic and cannot even locate the main issue of a valid argument in which PASTA PADRE even agrees.

BOYCOTT MADDEN 11 PRE-ORDERS!!!

Ovr23

Uh, there was also a free demo (once again your facts aren't straight). I haven't said a word about the roster update thing, stop trying to force me to debate that when I'm clearly talking about your other points. I agree that it's wrong to blindside people after getting them used to weekly updates like they promised (for the most part), but that's not what I'm discussing with you.

You know maybe if you stopped insulting people you'd get more responses. Simply stating that your "logic is good" doesn't make it true, either. The short demo was entirely free to anyone, while the longer demo was also free, as you were pre-ordering a copy of Madden and paying no extra money in the end, which you CAN cancel and keep your pre-order code if you want (like I did personally). You said earlier that there was no bonus whatsoever by pre-ordering, which was factually incorrect and now you're backpedaling by padding your argument with pointless insults.

I'm sure Pasta doesn't entirely approve of your aggressive demeanor, which is why you don't get any responses from him.

Serapath

Excellent reply Skihawks. Your points on pre-orders are perfect as well as video games expectations.

N/A

Skihawks has a terrible analysis of pre-orders. Please someone tell me the last time Best Buy, Wal-Mart or Target ran out of the game to the point that if one store was out you could not drive down the road to another and still pick it up?

these so called "bonuses" are things that should already be given for free...I mean a perk in a game, come on! What kind of "bonus" is that. They make you think it's a bonus. The only way pre-ordering a game would be logical these days is if you could get access to the game BEFORE the general public...but you don't so there is no point to pre-order. Games simply just don't sell out anymore because the Big Box retailers order more than enough quantity because the video game companies will just buy them back if the big boxes have a surplus of inventory.

And how is putting $5 down layaway. Layaway is when the product is already in, and the seller holds it until you pay it off. In this case, the seller doesn't even have the game yet in their hands. The game isn't going to sell out anyways. The deposit is not always refundable, where is it refundable? Best Buy doesn't offer refunds on deposits for games if I recall correctly.

Pre-Ordering is probably the worst thing anyone can do unless 2 things happen. 1) the game is such a hot commodity that there will INDEED be a shortage and there will be a very limited supply or 2) you get access to the game earlier than the general public. Otherwise pre-ordering a game fly's in the face of "time value of money" concept in accounting principles and the buyer incurs no added benefit while the seller gains everything. It's an option contract where the buyer is paying for the option to buy the game when it comes in...however, why would you sign an option contract on something that you know will be in stock anyhow, you receive no REAL benefit from it and you cannot get a refund?

Sounds to me if you Pre-Order Madden 11 you are a sucker. It's a bad deal.

BOYCOTT MADDEN 11 PRE-ORDERS!!!

Ovr23

More and more blanket statements I see...

1. If you pre-order online you can cancel your order and still keep the bonus if it is given before the game's release. Even in a store, if you complain enough to a manager you can get store credit.
2. Like I mentioned earlier, you obviously have no knowledge of how game retailers decide how much to stock on games that aren't Madden or Call of Duty.
3. In MMO's, early access is commonplace (meaning you DO get the game before the general public) from pre-orders as well as access to a beta which...you can cancel afterward and never have the money deducted. EA published Warhammer Online, and is soon publishing The Old Republic. I mentioned this earlier and you conveniently ignored it. Personally I find having an entire MP mode available for a month before anyone else a significant bonus for Army of Two: The 40th Day as well.
4. Not everyone lives close to large amounts of retail stores, so your argument about driving down the road does not apply universally. It's presuming that someone is also willing to waste their day hopping around, wasting gas, all for one game they could plan when and where to pick-up by pre-ordering.
5. Your idea of hot commodity contradicts your point about finding a copy somewhere else...in actuality the games that might not be available at more than just Gamestop are the ones a person needs to pre-order. Demon's Souls, for example, was sold out at every Best Buy and Gamestop I went to. I also don't get the full soundtrack and art book that came with initial pre-order copies of the game (for the same price).

N/A

Ok you do know that my entire argument was based on Madden and no other game correct? Ok good, b/c you keep bringing up the industry and other games arguments when my premise was centered on Madden.

1) So you still get no real benefit with madden pre-order...a demo, whoopie.
2) I do not dispute this point. I am not an avid gamer, nor have I claimed as such.
3) What are MMO's. Again, my argument has, is and always has been around Madden, not other games. It has been around how EA has dealt blows to its Madden end-users. Nice try though.
4) Not everyone lives close to them. Ok. They can make the drive into town, I'm sure they go to a mall once in awhile, and if they want Madden bad enough, they will drive to a Wal-Mart. Believe me.
5) Again, my argument has always been around MADDEN you bumbling, stumbling, rambling soul.

OBVIOUSLY my argument cannot be possibly be supported if I am talking about the gaming industry as a whole. I was talking about the producer of MADDEN and how EA handled MADDEN. Wow, dude, you are completely illogical and obviously may need to see a doctor about a potential ADD problem.

And I don't care if Pasta responds, I'm sure he has much better things to do then get into arguments when it is clear I am correct. He knows I am doing a good enough job owning you myself.

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