Star Wars Battlefront 2 wipes $3.1 billion from EA’s stock value

Star Wars Battlefront 2 wipes $3.1 billion from EA’s stock value

We always hear gamers say, vote with your wallets but it’s rare you see the impact. This time the Star Wars Battlefront 2 backlash against loot boxes from gamers has had a real impact on EA.

According to CNBC, $3.1 billion of shareholder value has been wiped with EA’s stock having dropped 8.5% in the past month. With sales of the game lower than expected, Analysts have become increasingly concerned.

Writing to his clients, Stifel analyst Drew Crum wrote,  “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.”

Cowen’s Doug Creutz also alerted clients saying, “We think the time has come for the industry to collectively establish a set of standards for MTX implementation, both to repair damaged player perceptions and avoid the threat of regulation.”

Despite the backlash, CNBC also points out that EA’s shares are up 39 percent year to date because there is “anticipation of future profits stream from micro-transactions”.

The battle against loot box practices is only beginning and unless gamers continue to boycott games with mechanics that are pay to win, or could be considered gambling, nothing will change. Yesterday we saw the formation of the NCGP to tackle “unscrupulous videogame companies” but it’s not entirely clear what their mission is and who they represent.

For now, the only way to encourage change is by voting with your wallet. Star Wars Battlefront 2 was just the first step.

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  • Paul Younger

    Founder and Editor of PC Invasion. Veteran PC gamer of over 22 years.

    • laughterjones

      “player perceptions” See, EA is the real victim here. Some guy just said players are overreacting. Move along, move along.

    • Kuro12

      So, just more of the same, lying and paying people behind the scenes to make sure the player perception is “correct”, its a business after all 🙂
      Reassuring to know the gaming industry is in good hands.

    • Steven Bracewell

      The industry has taken it too far, let your voice be heard on Loot Crates….
      If enough people give up buying these AAA titles with loot-crates , we’ll help empty the pockets of greedy publishers like EA and many more out there!
      Share & Spread The Word #boycottlootcrates

    • https://steamcommunity.com/id/SFLUFAN/ SFLUFAN

      The CNBC report is very inaccurate in its characterization of the timing of the stock price decline.

      https://uploads.disquscdn.com/images/83d62569a478b877f2725f4f88016b206fcda97922ec9a622bd3f6ebc0a8ebca.png

      Do you see that big drop on October 31? That accounts for the bulk of the $3.1 billion decline in market capitalization, and it had ABSOLUTELY NOTHING to do with Battlefront II. That drop in stock price occurred immediately after EA released its last earnings report and that drop represents approximately $2 billion in market capitalization. The next big drop occurs on November 16 which is when the BFII shit hit the fan…but what do you see? Oh yes, the stock price has erased a good chunk of that particular market cap loss already.

      In other words, CNBC still sucks and you should instead get your business news from Bloomberg instead.