$EA (+1.45%) has lost 22% in one month

The maker of EA Sports FC has lowered its forecast for the year, mainly due to a mid-single-digit decline in annual live service bookings.

But also because of Dragon Age The Veilguard "Failguard", which only reached 1.5 million players.

Graphic: Gagadget.com

Do you remember Mass Effect? I'm sure you do, right? I bet most of you have at least heard of it. A really good single-player RPG series. Also interesting for shareholders, Mass Effect is a powerful franchise, millions of fans and multiple awards. Similar to GTA for Rockstar $TTWO (-0.04%)

The ingenious studio behind it is called BioWare. StarWars Old Republic, Mass Effect and Dragon Age, that's all you need, at least back then.

Everything was better back then, and in the gaming industry that's true in some areas.

EA is working on a new Mass Effect, and I have a fear that it will also be a flop when I look at the whole thing, behind the scenes.

The question is, which bandwagon is Mass Effect on, if it's the same direction as Failguard then you could re-buy. Yes, I have EA on my watchlist.

Gaming stocks drive shareholders away, but that's not the point today.

There are certainly satisfied buyers of the game, but most gamers have been scared away by the studio, criticism has been completely ignored and even partially blocked.

Why the game sold so poorly is not the point.

Game director Corinne Busche has left the studio, allegedly due to a job offer she couldn't refuse.

I don't think so, because she is largely responsible for the downfall of Dragon Age.

I think EA made her the suggestion that she leave the studio or they'd just fire her.

There are also rumors that BioWare (studio in Edmonton) is closing, which has been happening a lot lately when studios don't deliver. I wouldn't be surprised, but like I said, rumor mill.

The fact is, if a new Mass Effect comes out and it has the same spirit as Dragon Age Failguard, it won't sell.

Has anyone played Mass Effect or Dragon Age? I would be interested.

Sources:

Play3.de:

https://www.play3.de/2025/01/23/ea-senkt-umsatzprognose-dragon-age-the-veilguard-und-ea-sports-fc-25-unter-den-erwartungen/

MyMMO:

https://mein-mmo.de/dragon-age-veilguard-chefin-verlaesst-bioware-corinne-busch/

$6758 (+1.32%) Sony is a diversified company in consumer electronics, music and movie business, image sensors, another financial services division, etc.

But today it's all about consumer electronics, the Gaming & Network Services division accounts for 32% of sales. It's also about the Playstation games console.

The Playstation 5 sales figures total 66 million units (as of December 2024). 116 million users are registered in the Playstation Network and around 47 million users use the paid subscription (13% of revenue).

Today, however, we are talking about Playstation Studios. Gaming studios that only belong to Sony.

This means that the games are almost always only released on Playstation.

In the gaming industry, the name Playstation Studios stands for quality, at least in the PS4 era, but Sony is currently struggling with massive problems.

Money is being burned here, but really burned.

For information: AAA games cost an average of 300 million US dollars. According to a leak, Marvel's Spider-Man 2 cost 315 million.

According to the BBC, GTA 6 could cost up to two billion US dollars to develop.

In addition to the money, a lot of time is also invested, of course.

Guerilla Games, a talented studio from Amsterdam, needed the following for the game Horizon Forbidden West 2022: 300 developers, 5 years and 212 million US dollars.

By mid-April 2023, around 8.4 million units had been sold worldwide, so Sony can be satisfied, it's solid for a single platform.

Sony has disclosed the development costs of two major games as part of the court case regarding the Activision-Blizzard and Microsoft takeover, they don't actually disclose such production cost information.

Jim Ryan (pictured) succeeded Kodera as President and CEO of Sony Interactive Entertainment (Playstation) in April 2019.

In 2022, he declared that Sony wanted to launch 12 live-service titles by 2025.

What are live service games?

(Written by Ryktes on Reddit)

A live-service game is a game that has been developed with the sole purpose of keeping people playing for as long as possible, in the hope that those players will pay for microtransactions. The most common way that live services encourage engagement is by making the player feel like they're losing something if they don't return to the game regularly.

• Are there Take-Two Interactive $TTWO (-0.04%) shareholders?

In 2016, Rockstar achieved a turnover of half a billion US dollars with GTA Online.

• Electronic Arts $EA (+1.45%)

EA generates 73% of its estimated revenue (7.5 billion US dollars) from in-game purchases and subscriptions.

PS: Share price has just fallen by 9%, the company expects net revenue from live services to fall.

• Microsoft $MSFT (-1.57%)

The subsidiary King Games (Candy Crush Saga) has a turnover of 20 billion US dollars.

• Sony $6758 (+1.32%)

Bungie acquired for 3.6 billion US dollars, over 160 million US dollars in microtransaction revenue between 2017 and 2019.

Live service games can be a goldmine, but they don't have to be.

Sony, the second-largest gaming company after Tencent $TCEHY (+2.81%) was actually missing just that. Single-player games were their thing, with games like God of War, Ghost of Tsushima or Marvel's Spiderman, XBOX was finally left behind because Microsoft overslept an entire generation.

But single-player games only bring in money with purchases, after that it stops.

But now Jim wanted to get a slice of the pie and produce a real cash cow. A huge cash cow meadow was to be created out of nothing.

Let's see what happened to these plans. Jim has since resigned, leaving his successor with a billion-dollar grave.

Two games were released during this time.

• Helldivers 2 sold over 12 million copies on Playstation 5 and PC by 05.05.2024. A real hit.
• Concord 25,000 units sold after two weeks! 25k The studio was even acquired during production. According to the sources quoted by Sacred Symbols, the production of Concord cost as much as 400 million US dollars. The studio is defending itself against these sources, but insiders are now piling on and confirming this. Sony closed the studio after two weeks... Firewalk Studio worked on the game for a total of 8 years, Sony was involved from the very beginning.

As of 01/23/2025, Sony has canceled 7 of 12 live service games.

Sony's management has wasted half the generation pursuing live-service games, only to cut almost all of them.

Bluepoint Games as an example, a developer of the Demon Souls remake.

This studio specialized in single-player and did damn well with it, gamers and press were always satisfied.

Now this studio has been given the task of developing a game with live service game elements. Bluepoint Games has no idea how this works, but thinks Okay Okay Okay if that's what the boss wants, we'll do it.

Video games are not always video games. Single-player and L-S-G are as different as apples and oranges.

Imagine Elon Musk now wants to produce cars with fuel, 12 models at once. Something like that can work, but it doesn't have to.

I didn't think it was a bad idea to produce live service games on the side.

But there were just too many.

I don't know how much the loss is, but if I had to bet, 2.1 billion US dollars.

With a net profit of 6.7 billion US dollars (2024), Sony can handle that.

However, important games will now be missing, Sony is lucky that Microsoft is no longer interested in selling consoles.

In conclusion, I have to say that it was the right move to pull the plug early on. Otherwise Sony would be burning more money.

Sources:

Gamespot:

https://www.gamespot.com/gallery/sonys-live-service-game-status-report-canceled-released-shut-down/2900-6143/#1

ScreenRant:

https://screenrant.com/sony-cancels-live-service-games-god-of-war/

Wikipedia:

https://en.wikipedia.org/wiki/Sony

Play3:

https://www.play3.de/2024/11/08/ps5-absatzzahl-aktive-psn-nutzer-spieleverkaeufe-sony-veroeffentlicht-umfangreiche-statistiken/

Play3:

https://www.play3.de/2023/10/02/playstation-live-service-fokus-war-fuer-die-studios-eine-unangenehme-umstellung/

Jason Schreier, US American journalist

Bloomberg News, news agency

On the watchlist for 3 months and waiting for a good time.

All of these shares reached new ALL-TIME HIGHS at some point today ⤵️

Nvidia $NVDA (-3.63%)

Amazon $AMZN (-2.39%)

Netflix $NFLX (-1.73%)

Walmart $WMT (-2.31%)

JPMorgan $JPM (-0.57%)

Goldman Sachs $GOS0

Palantir $PLTR (-3.33%)

Blackrock $BLK

American Express $AXP (-2.31%)

Arista $ANET

Apollo $APO PR A

Blackstone $BX (-3.26%)

Booking $BKNG (-5.35%)

Instacart $INSTA (-0.27%)

Caterpillar $CAT (-2.26%)

Capital One $COF (-2.3%)

Discover Financial $DFS (-2.44%)

Electronic Arts $EA (+1.45%)

GE Vernova $GEV (-8.21%)

Hilton $HLT (-2.82%)

Howmet $HWM (-5.88%)

Interactive Brokers $IBKR (-2.25%)

$KKR (-1.3%)

Cheniere $LNG (-2.15%)

Morgan Stanley $MS (-1.6%)

Marriot $MAR (-1.49%)

Nasdaq $NDAQ (-0.87%)

News Corp $NWSA (-1.45%)

Oracle $ORCL (-4.33%)

Palo Alto $PANW (-3.05%)

ServiceNow $NOW (-2.3%)

Steel Dynamics $STLD (-2.84%)

Stryker $SYK (-0.56%)

Royal Caribbean $RCL (-3.06%)

Reddit $RDDT (+0.01%)

Trade Desk $TTD (-4.67%)

Visa $V (-0.16%)

Wells Fargo $WFC (-1.02%)

🐺 CD Projekt: Of sorcerers and cyberpunks - the masters of digital worlds 🏙️

CD Projekt, a company based in Poland, specializes in the development and publication of video games. Founded in 1988, the company began as an IT service provider and has since developed into one of the most renowned names in the global gaming industry.

Historical development

$CDR (+0.8%) The company's origins lie in Optimus S.A., which began as an IT service provider. A decisive milestone in the company's history was the acquisition of game developer CD Projekt RED Sp. z o.o. in 2009, which marked the company's entry into game development and laid the foundation for its current success. In 2012, the company was finally renamed CD Projekt S.A., underlining the transition to a pure game developer.

Business model and core competencies

CD Projekt specializes in the development of story-driven role-playing games and has thus achieved an outstanding position in the industry. The company is particularly known for its ability to create deep, immersive game worlds that are popular with players worldwide. Its best-known productions include the award-winning "The Witcher" series, which has established itself internationally as one of the most successful role-playing games.

In addition to game development, CD Projekt also operates the digital distribution platform GOG.com, which provides an additional source of income and further diversifies the business model.

Future prospects and strategic initiatives

The future of CD Projekt rests on two central pillars: the further development of existing franchises and the creation of new intellectual property rights (IPs). The company is investing heavily in its technology and development processes to make future releases smoother and to further increase the quality of its games.

Another important strategic focus is the expansion of the business into other media. An outstanding example of this is the successful Netflix adaptation of "The Witcher", which has not only significantly increased brand awareness but also opened up new sources of revenue.

Market position and competition

CD Projekt is in direct competition with major game developers such as $TTWO (-0.04%) , $UBI (+0.87%)
$EA (+1.45%) . Nevertheless, the company manages to stand out from the competition thanks to its special focus on high-quality, story-based single-player experiences. This specialization has earned the company a loyal fan base and contributes significantly to its strong market position.

Total Addressable Market (TAM)

The global market for video games is growing continuously and offers CD Projekt enormous potential. With the increasing proliferation of gaming platforms and the growing demand for high-quality and immersive gaming experiences, CD Projekt has excellent opportunities to capitalize on this growing market.

Share performance

TR 14k % since IPO and -2.3% over the last three years.

Development

CD Projekt is currently one of the smaller game publishers in terms of sales. However, this does not mean that it has to stay that way - the potential for future growth is certainly there.

CD Projekt is also currently at the lower end of the growth scale, which is mainly due to the fact that the last major game release was some time ago. However, new titles are already in development. Compared to other game publishers, CD Projekt also has a significantly smaller number of IPs, which has given them less flexibility to date.

In terms of gross margin, CD Projekt is neither at the top nor at the bottom of the rankings. However, the margin, which has fallen recently, should rise again slightly following the release of the new projects. This puts the company in line with the industry average.

In contrast, CD Projekt clearly stands out in terms of its net profit margin. Even after a decline, the company is still twice as good as many of its competitors and thus clearly holds its own at the top.

In terms of earnings per share (EPS), CD Projekt is remarkably consistent in positive territory, while many other manufacturers often slip into negative territory in this respect.

CD Projekt's free cash flow (FCF) has also been positive for some time now, which illustrates the company's forward-looking planning and intelligent management. Despite the continuous investment in the development of new projects, the cash flow remains stable, which speaks for the financial health of the studio.

Another advantage for CD Projekt's shareholders is the almost non-existent stock-based compensation (SBC)

In contrast to many other companies that use buybacks to compensate for dilution effects and bring money to shareholders, CD Projekt can largely do without such measures

The ratio of net debt to EBITDA is also slightly negative at CD Projekt

However, CD Projekt is the most expensive gaming company in terms of EV/EBITDA ratio, reflecting investors' high expectations for future growth and the success of new projects.

Part 2: https://getqu.in/UAF5xR/

If it turns out to be true that GTA VI is postponed to 2026the Take Two share price could fall. GTA V and RDR2 were also postponed at the time and you certainly don't want to have a scandal like CD Projekt Red with the unfinished Cyberpunk 2077 in December 2020. CDPR fell 81% as a result. Anyone with T2 shares and patience could hold on and buy more if it falls. Will the game be postponed to 2026? What do YOU think? $TTWO (-0.04%)
$EA (+1.45%)
$UBI (+0.87%)
#gta6
#gta5
#gtavi

What do you think of $EA? (+1.45%)

Quarterly figures on 31.01.2023...

The hut is full today. Let's go es⤵️

Mass of figures today, have moved the market today. Let's take a look at summarized,

what there was so nice:

$AMD (-2.29%)
Advanced Micro Devices:

Beat analyst estimates of $0.67 in the fourth quarter with earnings per share of $0.69. Revenue of $5.6 billion beat expectations of $5.52 billion.

$SNAP (-2.76%)
Snap:

Beat analyst estimates of $0.11 in the fourth quarter with earnings per share of $0.14. Revenue of $1.3 billion in line with expectations.

$WDC (-3.47%)
Western Digital:

Missed analyst estimates of -$0.14 in the second quarter with earnings per share of -$0.42. Revenue of $3.11 billion exceeded expectations of $2.99 billion.

Canadian Pacific Railway:

Beat analyst estimates of $1.08 with fourth-quarter earnings per share of $1.14. Revenue of $2.46 billion exceeded expectations of $2.45 billion.

$MDLZ (+4.45%)
Mondelez International:

Beats fourth-quarter analyst estimates of $0.70 with earnings per share of $0.73. Revenue of $8.7 billion beats expectations of $8.33 billion.

$SYK (-0.56%)
Stryker:

Beats fourth-quarter analyst estimates of $2.84 with earnings per share of $3.00. Revenue of $5.2 billion beats expectations of $4.96 billion.

$EA (+1.45%)
Electronic Arts:

Missed analyst estimates of $3.04 in the third quarter with earnings per share of $0.73. Revenue of $1.88 billion below expectations of $2.48 billion.

$AMGN (+3.04%)
Amgen:

Meets analyst estimates in the fourth quarter with earnings per share of $4.09. Revenue of $6.8 billion above expectations of $6.74 billion.

$SYY (+3.23%)
Sysco:

Misses analyst estimates of $0.84 in second quarter with EPS of $0.80.Revenue of $18.6 billion beats expectations of $18.59 billion.Sysco lowers fiscal 2023 EPS guidance to $4.0-4.15 from $4.09-4.39. The consensus estimate is currently $4.14.

$MCD (+0.5%)
McDonald's Corp:

Beat analyst estimates of $2.45 with fourth-quarter EPS of $2.59. Revenue of $5.93 billion beat expectations of $5.71 billion.

$PFE (+1.91%)
Pfizer Inc:

Beats fourth-quarter analyst estimates of $1.07 with earnings per share of $1.14. Revenue of $24.29 billion below expectations of $24.61 billion. In its 2023 outlook, the company expects revenue of $67 billion to $71 billion (analyst forecast: $71.7 billion) and earnings per share (adjusted) of $3.25 to $3.45 (forecast: $4.3).

$MSCI (+1.13%)
MSCI Inc:

Beat analyst estimates of $2.76 in fourth-quarter earnings per share of $2.84. Revenue of $576.21 million beat expectations of $568.58 million.

$GM (-1.56%)
General Motors Co:

fourth-quarter earnings per share of $2.21 beat analyst estimates of $1.68. Revenue of $43.1 billion beat expectations of $40.04 billion.

$XOM (-0.73%)
xxon Mobil Corp:

Beat analyst estimates of $3.29 in fourth-quarter earnings per share of $3.40. Revenue of $95.43 billion below expectations of $97.17 billion.

$CAT (-2.26%)
Caterpillar Inc:

Missed analyst estimates of $4.02 with fourth-quarter earnings per share of $3.86. Sales of $16.6 billion beat expectations of $15.82 billion.

$AOF (+0.87%)
ATOSS Software:

Achieves 2022 sales of €113.9 million (PY: €97.1 million, preliminary: €113 to €114 million), Ebit margin of 27% (PY: 28%, preliminary: 26% to 27%) and net profit of €19.4 million (PY: €19.3 million). Forecasts confirmed. ATOSS Software to increase distribution to €2.83 per share (previous year: €1.82), distribution includes a dividend of €1.83 and a special dividend of €1.00 per share.

$HLAG (-0.6%)
Hapag-Lloyd:

Achieves Q4 2022 sales of $8.0 billion (PY: $8.4 billion), Ebitda of $3.8 billion (PY: $4.7 billion) and Ebit of $3.3 billion (PY: $4.2 billion), according to preliminary figures.

#mcdonalds
#stryker
#sysco
#exxonmobile
#mondelez
#pfizer
#snap
#caterpillar
#atoss
#electronicarts
#amd
#quartalszahlen
#aktien
#börse
#boerse