5 Reasons Why EA Lost 400,000 “Star Wars: The Old Republic” Subscribers In 3 Months:
Electronic Arts unveiled its earnings yesterday and analysts were disappointed after hearing the company lost subscribers to one of its key games. EA has put a significant investment in the game “Star Wars: The Old Republic” but this investment may not payoff in the near future it current trends continue.
EA lost 400,000 subscribers to the Star Wars: The Old Republic video game and the gaming sector is going through revolutionary change with the increase in social gaming via smartphone, computers and other devices. “Star Wars: The Old Republic” subscriptions fell from 1.7 million to 1.3 million in EA’s fiscal fourth quarter 2011.
Hear Are 5 Major Reasons Why EA Lost Subscribers to “Star Wars: The Old Republic”
- More people are using smartphones to play games: smartphone growth is cannibalizing some gaming devices as people upgrade from legacy cell phones.
- The economy: the economy has been slow for the last few quarters with unemployment over 8 percent which is having a negative impact on retail, consumer electronics, the likes of Best Buy and gamers.
- Tablet growth: the mobile sector is growing and consumers are picking up Nooks, Kindle Fires and iPads.
- The rise of “cheap” social gaming – social gaming isn’t just a short term phenomenon and it requires low tech. Many social media games are free and low cost.
- Demographic change – the hardcore gamer demographic is changing as kids, teens and various ethnic groups become gamers too. The new gaming demographic isn’t into games with a high learning curve.
EA has invested heavily on “Star Wars: The Old Republic” and may not be ready to take advantage of the technological as well as cultural shifts that are occurring in the sector. Unless the game maker can integrate games and accessories into new mobile devices quickly and focus less on creating games for the gaming console, it will be difficult to expand or take advantage of trends.