EA No Longer Relevant to NASDAQ Top 100

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EA No Longer Relevant to NASDAQ Top 100

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Electronic Arts' recent failures and stock price drop sees it suffer a NASDAQ disappointment.

"Our objective re-ranking process ensures the NASDAQ-100 remains a relevant investable index," NASDAQ declares, and one of the stocks no longer relevant to the index is EA's. Electronic Arts has been dropped from the NASDAQ top 100 non-financial companies, effective the morning of December 24th.

The announcement came as part of NASDAQ's annual re-balancing of its top 100 list, which happens at this time each year. Not unlike Santa, the financial exchange prefers to have its good list in place for Christmas. "The securities being added to the NASDAQ-100 Index," said the official NASDAQ announcement, "will join Facebook, Costco, Apple, Google and other household names that are leading the new economy forward." Rather than leading the new economy forward, EA has instead seen its stock price dip 40% as of June 2012.

The NASDAQ top 100 is an index of 100 of the biggest non-financial listed companies, and - unlike some other indexes - does include companies incorporated outside the United States. The point of the top 100 ranking is to indicate to investors which of the companies on the exchange are the top dogs, and presumably therefore the soundest investment.

Though NASDAQ didn't go through its reasoning, the likelihood is that the developer's recent efforts haven't been as forward-looking as the markets would like. What with Warfighter potentially ending the Medal of Honor franchise, the Star Wars MMO launching on a subscription basis to great fanfare only to go free to play, and troubles at subsidiary PopCap, which saw Plants vs Zombies creator George Fan lose his job, you can see why financial analysts might be wary of EA right now.

Source: VG24/7

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I still find the Star Wars the Old Republic Free to Play option amazing. It is like EA doesn't understand the goal of a Free To Play game. Your goal is to get people to actually play the game and then spend money on optional gear. Most of it cosmetic some of it that helps them game play wise. But not a single person is going to want to download your free to play game when they can't hardly do anything.

I've never seen a free to play option that was more crippled. I'm surprised they don't have free to play characters restricted to wheel chairs, and only able to move if a subscription player goes being them and starts pushing or they spend 10 dollars on a fuel cell that will pwoer the chair for an hour.

So falling stock prizes are listed as the reason EA is taken off, but they have facebook on for some reason?

Oh well, maybe this will have some people stop demonizing a video game publisher for some reason, in a world with companies that pollutes the third world or forces people out of their homes and we decide it's EA which is the worst. Can't expect people to have their priorities in order I guess.

So EA's long term strategy of aggressively up-selling everything is steadily biting them in the back end? Who'd a thunk?

I'm amazed it's taken until the end of 2012 to happen, in a world of mods, free to play and persistent worlds EA seem to think it can charge extra on everything from online access to UI elements, whilst always aggressively controlling every aspect of how the public plays 'their' products. Quite how they think they can run against the entire rest of the video game world is beyond me.

SNCommand:
So falling stock prizes are listed as the reason EA is taken off, but they have facebook on for some reason?

Inflated IPO aside, Facebook is making money, where as EA seem to be shovelling it into a furnace.

I honestly feel so bad for EA sometimes. They have they HARDEST investors of any company, I swear! It's not like they haven't published game after successful game - hell, they're the IP owner of the most purchased game franchise in history (the Sims), and EVERY developer/publisher has a few bad eggs... granted, both MOH and TOR were pretty big bad eggs... but still.

It's like if EA perverbally sneezes, they're stocks drop 50%.

The hull has been breched.

Now how will they handle damage control?

That will be what matters.

It doesn't matter, in the long run. If the company does go under, the executives at the top will sacrifice all of the employees so they can keep their millions and retire without having to pay out any pensions or anything. It's how it always is with companies like this.

Dec 24th?

Merry Christmas to you too Nasdaq.

Gotta love a little corporate trolling.. :)

A lot of game companies, US or not, are having issues keeping their businesses afloat. EA just happens to also have to deal with horrible game design decisions, marketing campaigns that hurt their public relations, and other issues.

Mimsofthedawg:
I honestly feel so bad for EA sometimes. They have they HARDEST investors of any company, I swear! It's not like they haven't published game after successful game - hell, they're the IP owner of the most purchased game franchise in history (the Sims), and EVERY developer/publisher has a few bad eggs... granted, both MOH and TOR were pretty big bad eggs... but still.

It's like if EA perverbally sneezes, they're stocks drop 50%.

Lets be Honest they put a lot of capital into developing SWTOR and it flopped big time. On top of that their move to free to play also appears to be a flop as well. I'm really a bit confused by EA's actions lately. They seem determined to drive any franchise into the ground.

Origin adoption has been terrible, and they don't seem capable of improving it the way their roadmap indicated. I'm honestly not sure what is going on at EA but they don't seem to be making operational decision based on the gaming industry and reality. They just seem to be sitting down and saying "how can we make more money" and then doing it with out ever considering if that will actually work or if it will hurt them in the long run.

Here we go again. OMG I HATE EA THEY'RE WORSE THAN HITLER D:. Same hyperbole in every single thread or facebook comment section; the same completely retarded hopes for EA crashing, because a huge part of the gaming industry going under is apparently good for the industry. Yeah, nothing like thousands upon thousands of people losing their jobs to spruce up the business world amirite? Because that's how the business world works, and that's why the massive amounts of people getting fired from their jobs every day is COMPLETELY FIXING the worldwide economic crisis we're currently suffering through.

More on-topic of the article itself, gotta agree that EA has the most bloody bipolar investor-base I've ever seen. They scratch their backsides differently one morning and suddenly the stocks dip like everyone's scared the Mayans were right. Personally I enjoy BF3, the Mass Effect series, and the F2P disaster of SWTOR doesn't really faze me either since I never stopped subscribing. A good bunch of excellent game releases, and I hope they keep coming. Some kind of ranking list hardly affects the individual gamer anyhow.

Then again I might aswell be shouting this into a pillow. People will keep thinking EA is the devil, and will keep thinking the company crashing and leaving thousands of people unemployed would be GOOD for the industry.

Well karma's a bitch. As Jim Sterling already said in a previous episode of Jimquisition, they are seem to be stuck in the past with their outdated business model and like some of you said don't want to innovate. I'm just glad that those decisions are now biting them in the ass.

I kinda feel bad for grinning like a bastard right now...a little. Hey, this is how the market works, if people don't like you and don't want to buy your product, you don't make money.

Karathos:
Snip

Just looking through the comments and there really doesn't seem to be any "Burn down EA!" comments, mostly just people saying (essentially) "Stuff like this happens when you openly don't seem to care about the feelings of your customers." That is to say doing things like charging forward with the nickle and dime microtransactions, making people pay to play multiplayer (in the case of XBox, on a system they're already paying for to have online capabilities), and their all-out war against used games.

I honestly don't want EA to go under. Like you, I'll say that they put out a lot of series that I enjoy. However I do like it when something like this happens because hopefully it'll be just another subtle hint to the higher-ups that "Hey, we're clearly doing something wrong here. What can be done to fix it?" With any luck, things like this will bring about some changes that will put a stop to all the "EA MUST BURN IN HELL!" comments.

SNCommand:
So falling stock prizes are listed as the reason EA is taken off, but they have facebook on for some reason?

Oh well, maybe this will have some people stop demonizing a video game publisher for some reason, in a world with companies that pollutes the third world or forces people out of their homes and we decide it's EA which is the worst. Can't expect people to have their priorities in order I guess.

You do realize that this is a site revolving primarily around videogames, right? And as such, the problems of a game publishing company are of higher priority to the people here than the issues of companies that aren't related to games.

RJ 17:

SNCommand:
So falling stock prizes are listed as the reason EA is taken off, but they have facebook on for some reason?

Oh well, maybe this will have some people stop demonizing a video game publisher for some reason, in a world with companies that pollutes the third world or forces people out of their homes and we decide it's EA which is the worst. Can't expect people to have their priorities in order I guess.

You do realize that this is a site revolving primarily around videogames, right? And as such, the problems of a game publishing company are of higher priority to the people here than the issues of companies that aren't related to games.

I wasn't speaking about the attitude towards EA on this forum alone

Karathos:
Here we go again. OMG I HATE EA THEY'RE WORSE THAN HITLER D:. Same hyperbole in every single thread or facebook comment section; the same completely retarded hopes for EA crashing, because a huge part of the gaming industry going under is apparently good for the industry. Yeah, nothing like thousands upon thousands of people losing their jobs to spruce up the business world amirite? Because that's how the business world works, and that's why the massive amounts of people getting fired from their jobs every day is COMPLETELY FIXING the worldwide economic crisis we're currently suffering through.

More on-topic of the article itself, gotta agree that EA has the most bloody bipolar investor-base I've ever seen. They scratch their backsides differently one morning and suddenly the stocks dip like everyone's scared the Mayans were right. Personally I enjoy BF3, the Mass Effect series, and the F2P disaster of SWTOR doesn't really faze me either since I never stopped subscribing. A good bunch of excellent game releases, and I hope they keep coming. Some kind of ranking list hardly affects the individual gamer anyhow.

Then again I might aswell be shouting this into a pillow. People will keep thinking EA is the devil, and will keep thinking the company crashing and leaving thousands of people unemployed would be GOOD for the industry.

It wouldnt be good for the industry in the short term, but long term those people will find new jobs, found new development studios ect. They wont suddenly disappear into the ether when their jobs go away, they have experiance in the field, and they will find new ways to work in the field. Besides, most of the developers would be fine, other large publishers would buy the developers and studios contracts.

In the long term EA crashing would be good for the industry, as a warning to other publishers and a roadmap of what not to do.

And who knows, maybe the Mayans were right! But its just the end of the world for EA :P

SNCommand:

RJ 17:

SNCommand:
So falling stock prizes are listed as the reason EA is taken off, but they have facebook on for some reason?

Oh well, maybe this will have some people stop demonizing a video game publisher for some reason, in a world with companies that pollutes the third world or forces people out of their homes and we decide it's EA which is the worst. Can't expect people to have their priorities in order I guess.

You do realize that this is a site revolving primarily around videogames, right? And as such, the problems of a game publishing company are of higher priority to the people here than the issues of companies that aren't related to games.

I wasn't speaking about the attitude towards EA on this forum alone

To my knowledge, the only people demonizing EA are gamers, which again points to the fact that clearly a gamer is more interested in the issues surrounding a game publisher than the issues surrounding a company that has nothing to do with games. There's plenty of other groups of people demonizing those other companies because we all have different priorities, and that's the key here.

You look at someone who makes a living as a farmer but only wants to paint portraits and say "That person needs to get their priorities straight." Painting has nothing to do with farming. You don't look at gamers taking issue with things a game publisher says/does rather than, say, an oil company and say "Those people need to get their priorities straight." Game publishers have quite a large impact on gamers, the concerns of an oil company on the other hand do not.

RJ 17:

SNCommand:

RJ 17:

You do realize that this is a site revolving primarily around videogames, right? And as such, the problems of a game publishing company are of higher priority to the people here than the issues of companies that aren't related to games.

I wasn't speaking about the attitude towards EA on this forum alone

To my knowledge, the only people demonizing EA are gamers, which again points to the fact that clearly a gamer is more interested in the issues surrounding a game publisher than the issues surrounding a company that has nothing to do with games. There's plenty of other groups of people demonizing those other companies because we all have different priorities, and that's the key here.

You look at someone who makes a living as a farmer but only wants to paint portraits and say "That person needs to get their priorities straight." Painting has nothing to do with farming. You don't look at gamers taking issue with things a game publisher says/does rather than, say, an oil company and say "Those people need to get their priorities straight." Game publishers have quite a large impact on gamers, the concerns of an oil company on the other hand do not.

So you think it's completely logical for people to vote EA as the worst company? I get it that gamers are the people hating on EA, but when their hatred of an entertainment publisher is so great it eclipses other issues it's an example of people having wrong priorities

The hate towards EA is also spreading to non gamers who just hang out on the internet, people who never touch a game voluntarily now thinks EA is evil for some reason just because it's all they read when on reddit or on facebook

Karathos:
Here we go again. OMG I HATE EA THEY'RE WORSE THAN HITLER D:. Same hyperbole in every single thread or facebook comment section; the same completely retarded hopes for EA crashing, because a huge part of the gaming industry going under is apparently good for the industry. Yeah, nothing like thousands upon thousands of people losing their jobs to spruce up the business world amirite? Because that's how the business world works, and that's why the massive amounts of people getting fired from their jobs every day is COMPLETELY FIXING the worldwide economic crisis we're currently suffering through.

More on-topic of the article itself, gotta agree that EA has the most bloody bipolar investor-base I've ever seen. They scratch their backsides differently one morning and suddenly the stocks dip like everyone's scared the Mayans were right. Personally I enjoy BF3, the Mass Effect series, and the F2P disaster of SWTOR doesn't really faze me either since I never stopped subscribing. A good bunch of excellent game releases, and I hope they keep coming. Some kind of ranking list hardly affects the individual gamer anyhow.

Then again I might aswell be shouting this into a pillow. People will keep thinking EA is the devil, and will keep thinking the company crashing and leaving thousands of people unemployed would be GOOD for the industry.

You seem to be the only one screaming here.

And yes, EA going under would be good for the industry. A company that large dieing would create a huge opening to fill and many, MANY entities would be competing for their piece of it. Assuming you have even the most rudimentary understanding of how capitalism works, you know that competition is good for the industry and the consumer. New studios would form, existing studios and IPs would be sold or dissolved, talented people would go in to other areas and work on other games, new franchises would be born as people try to be "the next Call of Duty" and many of them would try to do it without being beholden to share-holders so they could take risks. Would people be out of work? Sure, but for the industry itself, it would be a shake things up and allow for tons of opportunities to see new ideas born.

40%? Holy hell.

They better sack some more developers arguably vital to their future releases. As well as slash some more developer wages and increase their prices.

This is the part where EA, ignores their repeated alienation of an entire culture, and instead blames everything that has gone wrong on pirates, isn't that the drill for these things?

Now watch as EA starts cutting more corners, firing more key staff and focus even more on yearly releases, blaming the failure on gamers "not appreciating the industry". And slowly but surely they will become their own undoing thanks to a lack of understanding of their own industry, besides the yearly release-titles: EA Sports basicly.

Alternatively, they will buy yet another up and comming developer and milk their franchise(s)/IPs, with overly saturated marketing hype, until it starts slipping in sales.

The cycle has repeated itself more times than you can possibly imagine.

EA is hurting because they think they can treat their customers badly and get away with it. Nope!

I feel bad for the people losing their jobs. Hopefully a decent company will step up and hire them.

NinjaDeathSlap:
This is the part where EA, ignores their repeated alienation of an entire culture, and instead blames everything that has gone wrong on pirates, isn't that the drill for these things?

I thought that was more Ubisoft's shtick?

Anyway, hard to blame the decision, considering SWTOR's unsurprising tanking.

Well on a positive note, this may be the kick up the backside EA needs for it to change it's ways and become a better company... hey I can dream can't I?

So the time is ripe to buy EA stock?
I'm no financial expert (or amateur for that matter), but as I understand it: Buy low, sell high.

EA will rebound, so buy stock now while it's low and watch it grow.

That's my 2 cents.

synobal:

Mimsofthedawg:
I honestly feel so bad for EA sometimes. They have they HARDEST investors of any company, I swear! It's not like they haven't published game after successful game - hell, they're the IP owner of the most purchased game franchise in history (the Sims), and EVERY developer/publisher has a few bad eggs... granted, both MOH and TOR were pretty big bad eggs... but still.

It's like if EA perverbally sneezes, they're stocks drop 50%.

Lets be Honest they put a lot of capital into developing SWTOR and it flopped big time. On top of that their move to free to play also appears to be a flop as well. I'm really a bit confused by EA's actions lately. They seem determined to drive any franchise into the ground.

Origin adoption has been terrible, and they don't seem capable of improving it the way their roadmap indicated. I'm honestly not sure what is going on at EA but they don't seem to be making operational decision based on the gaming industry and reality. They just seem to be sitting down and saying "how can we make more money" and then doing it with out ever considering if that will actually work or if it will hurt them in the long run.

Yea. I mean there are other things too, such as EA's belief that "By 2015 all games will be free to play"... first of all, that's just a couple years away... how does the ENTIRE MARKET of one of the world's largest (if not THE largest) entertainment industries change that fast? Second, why is EA seemingly the ONLY one that believes this?

They also did stupid things with their mobile/casual game department. A couple of years ago they believed it was the way of the future, and then the bubble popped.

But there's two things: A. EA still makes very high quality games, whether you're talking about Mass Effect, Battlefield, The Sims (which is in a way niche and in a way not... a LOT of people play it), etc. It seems like no one EVER talks about their successes.

B. Their investors seriously hate EA. I know that we can talk about abysmal failures like MOH and TOR, but Battlefield did very well, all things considered, yet I remember reading something about stocks dropping because it didn't meet expectations of some investors. What expectations? That it would beat COD. WHO THE HELL THOUGHT IT WOULD SELL MORE THAN COD?! That's what I mean, EA just can't catch a freaking break.

Oh EA, if I could only kick you while you are down. I'll have to settle for not buying your games and spitting on all your DLC.

SNCommand:

RJ 17:

SNCommand:

I wasn't speaking about the attitude towards EA on this forum alone

To my knowledge, the only people demonizing EA are gamers, which again points to the fact that clearly a gamer is more interested in the issues surrounding a game publisher than the issues surrounding a company that has nothing to do with games. There's plenty of other groups of people demonizing those other companies because we all have different priorities, and that's the key here.

You look at someone who makes a living as a farmer but only wants to paint portraits and say "That person needs to get their priorities straight." Painting has nothing to do with farming. You don't look at gamers taking issue with things a game publisher says/does rather than, say, an oil company and say "Those people need to get their priorities straight." Game publishers have quite a large impact on gamers, the concerns of an oil company on the other hand do not.

So you think it's completely logical for people to vote EA as the worst company? I get it that gamers are the people hating on EA, but when their hatred of an entertainment publisher is so great it eclipses other issues it's an example of people having wrong priorities

The hate towards EA is also spreading to non gamers who just hang out on the internet, people who never touch a game voluntarily now thinks EA is evil for some reason just because it's all they read when on reddit or on facebook

I'd say it's more than just logical. It makes complete sense really. Beyond the scope of their own world, most people don't generally tend to give a flying fuck. Add in the fact that EA seems to actively draw in the hate and ire people have for them and yeah.

If anything, blame the ignorant suits in change like Frank Gibeau, John Riccitiello, and David DeMartini.

Almost everything that have come out of these people's mouths about digital sales, online components, and DRM have been baffling stupid and backwards, and should have caused (and in some cases did cause) mid to large scale PR disasters.

Mimsofthedawg:

synobal:

Mimsofthedawg:
I honestly feel so bad for EA sometimes. They have they HARDEST investors of any company, I swear! It's not like they haven't published game after successful game - hell, they're the IP owner of the most purchased game franchise in history (the Sims), and EVERY developer/publisher has a few bad eggs... granted, both MOH and TOR were pretty big bad eggs... but still.

It's like if EA perverbally sneezes, they're stocks drop 50%.

Lets be Honest they put a lot of capital into developing SWTOR and it flopped big time. On top of that their move to free to play also appears to be a flop as well. I'm really a bit confused by EA's actions lately. They seem determined to drive any franchise into the ground.

Origin adoption has been terrible, and they don't seem capable of improving it the way their roadmap indicated. I'm honestly not sure what is going on at EA but they don't seem to be making operational decision based on the gaming industry and reality. They just seem to be sitting down and saying "how can we make more money" and then doing it with out ever considering if that will actually work or if it will hurt them in the long run.

Yea. I mean there are other things too, such as EA's belief that "By 2015 all games will be free to play"... first of all, that's just a couple years away... how does the ENTIRE MARKET of one of the world's largest (if not THE largest) entertainment industries change that fast? Second, why is EA seemingly the ONLY one that believes this?

They also did stupid things with their mobile/casual game department. A couple of years ago they believed it was the way of the future, and then the bubble popped.

But there's two things: A. EA still makes very high quality games, whether you're talking about Mass Effect, Battlefield, The Sims (which is in a way niche and in a way not... a LOT of people play it), etc. It seems like no one EVER talks about their successes.

B. Their investors seriously hate EA. I know that we can talk about abysmal failures like MOH and TOR, but Battlefield did very well, all things considered, yet I remember reading something about stocks dropping because it didn't meet expectations of some investors. What expectations? That it would beat COD. WHO THE HELL THOUGHT IT WOULD SELL MORE THAN COD?! That's what I mean, EA just can't catch a freaking break.

EA thought Battlefield would beat CoD. EA hyped that train to oblivion talkin about how it would be the next CoD, how CoD was crap compared to Battlefield, how their shit was better than Activisions shit by a mile.

The super obnoxious thing is that it was the publisher boastin super fuckin loudly to anyone who would hear, includin investors, all while DICE was tryin their hardest to bring those expectations back to reality town. Investors don't like reality though, they like the train to crazy rich town. When those expectations that EA all but said aloud didn't actually get met investors obviously got pissed.

EA wants to beat Activision. They want it so bad that they were willin to bet their stock on it and sold the highest possible expectations to their investors that it would happen. They don't care about reality. They don't care about facts and figures. They care that what they say makes investors happy in the short term while ignorin the most logical outcome and it bites them in the ass.

Karathos:
Here we go again. OMG I HATE EA THEY'RE WORSE THAN HITLER D:. Same hyperbole in every single thread or facebook comment section; the same completely retarded hopes for EA crashing, because a huge part of the gaming industry going under is apparently good for the industry. Yeah, nothing like thousands upon thousands of people losing their jobs to spruce up the business world amirite? Because that's how the business world works, and that's why the massive amounts of people getting fired from their jobs every day is COMPLETELY FIXING the worldwide economic crisis we're currently suffering through.

More on-topic of the article itself, gotta agree that EA has the most bloody bipolar investor-base I've ever seen. They scratch their backsides differently one morning and suddenly the stocks dip like everyone's scared the Mayans were right. Personally I enjoy BF3, the Mass Effect series, and the F2P disaster of SWTOR doesn't really faze me either since I never stopped subscribing. A good bunch of excellent game releases, and I hope they keep coming. Some kind of ranking list hardly affects the individual gamer anyhow.

Then again I might aswell be shouting this into a pillow. People will keep thinking EA is the devil, and will keep thinking the company crashing and leaving thousands of people unemployed would be GOOD for the industry.

EA's incompetence is costing people their jobs as it is. How do you think the 200 laid off Pandemic employees feel about getting cut down a year into their acquisition, before their games even hit shelves? They had very good sales, but it didn't matter, because their fate was sealed from day one. They were acquired together with BioWare anyway, because, hey, Riccitiello's private equity was the one selling them, how could he miss out on a cut from a 800 million dollar deal? And speaking of BioWare, their biggest franchise has just been moved out of their home studio, to a smaller newly-formed one inside a EA HQ. What do you think is in store for those 400 Edmonton employees if DA3 sells 2 million like its predecessor? Nevermind the state of their other acquisitions - Bullfrog, Westwood, Origin, Mythic, Maxis. Dead or butchered.

EA won't crash overnight, but they are certainly on a downward trend. And their bad reputation isn't the cause, it's a symptom. A sign that there's some shuffling to be done at the upper levels, and that is a good thing. Look at what Jason Rubin's been doing over at THQ. He wouldn't be in that spot if the previous management hadn't fucked up as badly as it did.

Devoneaux:

I'd say it's more than just logical. It makes complete sense really. Beyond the scope of their own world, most people don't generally tend to give a flying fuck. Add in the fact that EA seems to actively draw in the hate and ire people have for them and yeah.

Oh well, personally I find it moronic, people should have no issue really with a video game publisher unless they lie to the consumers, and then having EA receive so much hate as they do I find ridiculous, it's as if people think bitching against them will have them making games more to their liking

I miss the days I just bought the games and enjoyed them for what they were instead of experiencing all the drama around the industry, ignorance is a bliss

Karathos:
...People will keep thinking EA is the devil, and will keep thinking the company crashing and leaving thousands of people unemployed would be GOOD for the industry.

Well, considering they haven't changed at all since this video I would say that people saying that are relatively justified... although they could tone it down a little bit... At least they haven't repeated sin 2 win....... yet......

SNCommand:
...people should have no issue really with a video game publisher unless they lie to the consumers...

*clears throat*
image

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