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Activision's CEO, Bobby Kotick, just doesn't understand how the business model for Star Wars: The Old Republic will be at all beneficial to EA. Speaking with the Reuters Media Summit, Kotick just doesn't see BioWare's upcoming MMO helping anyone but Lucas Arts.
Unfortunately for Kotick, most analysts don't agree with his assessment.
In case you were unaware, Activision is the publisher for World of Warcraft, so perhaps Kotick is trying to do some damage control now before WoW loses even more subscribers to a competitor?
"Lucas is going to be the principal beneficiary of the success of Star Wars," Kotick 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."
EA declined to comment but has said previously that the game would become profitable if it reaches 500,000 subscribers.
Kotick also emphasized how hard it is for a company to pull off a successful multiplayer game, which involves sophisticated technology that allows thousands of people play together at one time.
"If you look at the history of the people investing in an MMO and achieving success, it's a small number," Kotick said.
EA declined to comment but has said previously that the game would become profitable if it reaches 500,000 subscribers.
Kotick also emphasized how hard it is for a company to pull off a successful multiplayer game, which involves sophisticated technology that allows thousands of people play together at one time.
"If you look at the history of the people investing in an MMO and achieving success, it's a small number," Kotick said.
Unfortunately for Kotick, most analysts don't agree with his assessment.
"Star Wars: The Old Republic," which EA has reportedly spent $100 million on, could attract 1.5 million to 2 million subscribers, which would qualify as a major success for EA.
Moreover, Bagga added in the recent note that between 3 million to 4 million "World of Warcraft" players may buy EA's new game.
Declines in "World of Warcraft" subscribers have worried investors. In November, the company raised its earnings forecast but its shares fell after the company said it had lost 800,000 "Warcraft" subscribers.
Moreover, Bagga added in the recent note that between 3 million to 4 million "World of Warcraft" players may buy EA's new game.
Declines in "World of Warcraft" subscribers have worried investors. In November, the company raised its earnings forecast but its shares fell after the company said it had lost 800,000 "Warcraft" subscribers.
In case you were unaware, Activision is the publisher for World of Warcraft, so perhaps Kotick is trying to do some damage control now before WoW loses even more subscribers to a competitor?
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