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EA is caught up in a game of “Keep Away”

February 11, 2007

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Ever been involved in a game of keep away. Take someones favorite thing and toss it back and forth and watch them run after it for hours at a time. My wife and I do it to my dog with a tennis ball all the time. Consumers are doing it to EA with their money.

“Wii is outselling the PS3 in the US and in the last month, Wii is outselling the PS3 by 3:1 margin in Japan. Games for the Wii can also be developed at almost 50% of the cost per title than games for other systems, a fact that THQ and Ubisoft, game developers with successful Wii titles in the market, are realizing with profit and margin increases. EA has 25 titles in development for the PS3 and only 6 titles expected for the Wii by the end of the current fiscal year.”

So EA saw the next gen. They saw the brute POWER of the PS3 and ran for it believing money would flow in. Why not? Eveyone owned a PS2 or 2 because kids can’t share and they break after a while, and after making ports for the 5 Gamecube owners, why would they invest making Game Cube games with new controller. So they ran for the PS3 like a eager puppy, hoping to catch the glorious tennis ball of their wet dreams, aka, the big bucks.

“EA released FY Q3 earnings on 2/1 and posted nearly flat revenue for the period compared to a year ago but lower adjusted earnings. Its shares initially gained 6% upon the announcement, but those gains were erased in the ensuing week. EA (Nasdaq: ERTS) is currently up over half a per cent in daily trading at $50.44 per share.”

What EA and other developers are going to realise is that they can port their PS2 games to Wii by just tacking on controls for the Wii.I mean why not, Nintendo built a launch out of that. And we will see a lot of that until they start deving for the Wii.

But what if…

What if by the time they start deving for Wii, the PS3 starts selling??? What if all of the Wii owners are fed up with the PS2 ports and want some great graphics and games built on the controller, not the other way around? EA will then skid to a stop, and start running at the PS3, or the 360. As of right now Wii has the best penetration rate and the cheapest made games.

Cheap, not inexpensive. Cheap implies that you are buying a cheap product and inexpensive implies that it is a quality product for less. We are paying 50 bucks for last gen graphics and tacked on controls while dev teams scramble to get back where the money is before people give up on this “Wii” that so many people seem to own. I am waiting for a Wii game worth $50, not a Game Cube game worth $35. Lets just hope by the time the Dev teams pull something off, everyone hasn’t already hocked their Wiis. Then they will have to go buy it back once Dev teams make grade a games like they did with RE4, and by that time the Dev teams have already run back to the other system. Seems like everyone is playing keep away now.

Source for all of this info

– I am Colonel Chuck Frisby, and the truth may piss you off

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7 Comments leave one →
  1. rashadlogic permalink
    February 11, 2007 5:10 pm

    Nice blog. EA knows how to do business, that’s why they are the richest video game brand, ever.

    Yo, did you check out the Wii-Weights: http://rashadlogic.wordpress.com/2007/02/11/wii-weights-for-the-fatties/

    WTF?

  2. February 12, 2007 1:08 pm

    I don’t know, Friz… the PS2 graphics are well below GC quality, even for the early GC games! Also, it takes between one and two years for developers to figure out all the graphic processor tricks on a system to really push the game graphics to their upmost quality. Just compare Halo and Halo 2 or Doom 3 on the Xbox, it’s hard to believe they are running on the same console. But it took three years for developers to get to that point.

    The problem Sony will have with PS3 penetration is that Wii’s penetration is a done deal: the units have sold! The PS3 launch craze has ended, and now only a killer application will be what sells units, but nowhere near the volume a killer app PLUS a new console launch combined would…

    Nintendo can now sit back and relax for a little while without losing steam. They can wait a few months even to launch a Wii killer app and keep the Wii craze going. Remember, most of the people buying Wiis are buying them for occasional party gaming sessions, even hardcore gamers, so they can be satisfied for a few months with just a copy of Wii Sports, Excite Truck, and Wario Smooth Moves.

    Because Nintendo knows this, they will hold back on Wii online play for as long as they need, maybe until the end of 2007!

  3. February 12, 2007 1:52 pm

    By the way, I think this is one of the articles that started all this hoopla about EA declaring they are switching sugar daddies:

    http://ps3.qj.net/EA-dev-Get-the-360-and-or-Wii/pg/49/aid/82471

    I have to reluctantly agree with EA: 360 + Wii = match made in Heaven!

  4. frisby permalink
    February 12, 2007 3:40 pm

    I think at this point the whole Wii60 idea is a match made in heaven. The Wii will never offer you the gamer experience the 360 does. That works both ways however. Online could be awesome with sony, but only after they have a user base to make me want to play online.

  5. February 12, 2007 4:03 pm

    That’s really the trick with online play, I think: to be enjoyable, there have to be a LOT of people wanting to play that game!

    That’s probably why Nintendo is not so interested in online play right now: even if they had it, and they had a ho-hum game that played online, who would go there? Most of the Wii gamers are not into online games, at least not the ones offered by Nintendo… I mean, Excite Truck is lots of fun, but I’d rather play Burnout or PGR3 online!

  6. February 13, 2007 2:04 am

    Eh, no surprise to me. EA is just annoying and money grubbing in general. It is always great to see them suffer. >:-) Funny picture, by the way.

  7. February 13, 2007 9:48 pm

    You guys complain of Nintendo and EA here, at least you don’t have the Nintendo Rewards program, the Xbox Rewards program is awful, won’t work.

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