TheStar Wars Battlefront 2controversy is not over just yet, despiteEAhaving temporarilyremoved microtransactionsfrom the game. EA is now facing even more backlash to its business model, as the company’s shareholders have huge concerns about how the issue has played out.
As of Tuesday, EA stock has dropped in value by 8.5% month to-date or about $3.1 billion of shareholder value. While other factors could also be at play, the drop in stock value is most likely a direct response toBattlefront 2’s poor sales performance.
In the UK,Battlefront 2sales dropped by more than 60%compared to its predecessor,Star Wars Battlefront. It seems that the game has been significantly affected by the ongoing controversy surrounding its loot boxes and microtransactions.
Stifel analyst Drew Crum issued a note on Sunday (Nov. 26) explaining that “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.” It’s worth noting that EA had already planned tocut the price ofBattlefront 2in order to celebrate the release ofStar Wars: The Last Jedi, and this could improve sales despite the early disappointment.
EA shareholders may also be concerned with the fact that theBattlefront 2microtransaction controversy could affect other EA games that also feature the business model. For example,Need for Speed Paybackalso saw heavy criticism for its loot boxes and microtransactions, forcing developer Ghost Games to make some tweaks. Meanwhile,FIFA 18players organized a Black Friday boycott, encouraging each other to avoid microtransactions in order to force EA to improve the game.
Moreover, several government agencies have now launched investigations into loot boxes and microtransactions. Some authorities have even suggested that major fines could be in the cards, or that certain games could be removed from sale. Such decisions could have a huge impact on howElectronic Artsmakes and monetizes its games in the future, which will only upset shareholders further.
These fears were highlighted in a note issued by Cowen analyst Doug Creutz on Monday. Creutz calledStar Wars Battlefront 2the “pointy tip of the iceberg” and recommended the games industry “collectively establish a set of standards for MTX implementation, both to repair damaged player perceptions and avoid the threat of regulation.”
Aself-regulatory organizationhas now been founded to address the loot box debate and this could potentially solve the issues raised by players. But whether it will be enough to fully restore reputations and give EA’s shareholders renewed faith in the company is unclear.
