Tag: Electronic Arts

Introducing the TriplePoint Video Game Index: GAMER

How is the video game industry doing? This is a common question that underlies much of the business and trade industry press. Individual stocks’ quarterly reports give meaningful anecdotes, but there is not one good benchmark to provide the capital markets’ answer to that question over time. Until now.

Introducing the TriplePoint Video Game Index. It launched today, April 26th, 2021 for investing professionals on the Bloomberg Terminal (ticker: GAMER). Within a few weeks the data should be commonly available on public investing information sites such as Yahoo! Finance and Google Finance under the same ticker. (EDIT 4/27/21: GAMER is now available on Google Finance.)

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Triplepoints of Interest – Nov. 6

In this week’s TPoI, EA acquires Titanfall developer Respawn Entertainment, third-party publishers scramble to develop Nintendo Switch titles, and Telltale Games lays off 25% of workforce during company restructure.

EA Acquires Respawn Entertainment

Electronic Arts Inc. announced on Thursday that they have acquired the developers of the popular shooter Titanfall, Respawn Entertainment. Eurogamer confirmed that EA has agreed to pay over $150 million to acquire the company and is set to pay up to $164 million in long term equity. Ars Techinca featured excerpts from EA’s statement which confirm that the studio is set to develop a new Titanfall game and a new Star Wars VR title with the help of EA. VentureBeat reports that previous titles produced by Respawn Entertainment have been financially successful due to the skill and pedigree of the developers, who previously worked for Infinity Ward before leaving to develop their own games.

Third-Party Developers Scramble to Develop Nintendo Switch Titles

The consistent success and high sales numbers of Nintendo Switch titles seems to have influenced several developers to bump up their production of Switch-exclusive games. Gamesindustry.biz reports that developers like Square Enix, Ubisoft and Bandai Namco are all planning to release multiple games for the device in 2018. This support, which SegmentNext references as a great example of the Switch’s success, shows that developers are confident with the sales numbers they can achieve with Nintendo Switch games. Express features a quote from Square Enix’s earnings report which says that the company would be interested to publish multiplatform games on the Switch as well.

Telltale Games Lays Off 25% of Workforce

Telltale Games announced on Tuesday that the company will lay off 90 employees and restructuring their workforce in an effort to create higher quality games. GameSpot commented that Telltale Games has been struggling to develop engaging titles due to the aging game engine the company uses and the large portfolio of games they are currently developing. PC Gamer reports that the company plans to focus on the quality of their projects and not quantity after their current projects are completed. Gamesindustry.biz reports that the restructuring should not have any impact on any of the developer’s previously announced projects.

TRIPLEPOINTS OF INTEREST – July 31

In this week’s TPoI, Steam gained over 27 million new paying users in the past 18 months, developers at the Games for Change Festival talk U.S. policy effects on the industry, and Electronic Arts merges Mass Effect: Andromeda developer with Motive Studios.

Steam Gains Over 27 Million New Customers in the Last 18 Months

Valve’s PC gaming platform Steam is widely regarded as the premier PC game distribution platform. GeekWire reports that Steam has gained 27 million new paying users since the start of 2016, a statistic that was announced during Valve’s panel at Casual Connect in Seattle. Matthew Wilson from Kitguru speculates that Steam’s continuous growth could be related to popular multiplayer titles such Dota 2, Counter Strike: Global Offensive, and PLAYERUNKNOWN’S BATTLEGROUNDS being available exclusively through Steam. Due to the rapid growth in user base, Steam now has over 67 million active users a month, a number that Polygon highlights is tracking well above Xbox Live’s 53 million average users. PC Gamer notes that Steam continues to grow with over 1.5 million new users every month and estimates that the platform will continue to dominate the PC gaming industry.

EA and Take-Two Say U.S. Government is Bad For Business

Representatives from Electronic Arts and Take-Two Interactive spoke on how recent U.S. government policy changes are directly affecting the industry during a panel at the 2017 Games for Change Festival. According to Polygon, the speakers argued that policy changes made to topics such as immigration, education, and trade directly affect the U.S games industry and its future growth. Green Man Gaming Newsroom covered the effect of the H-1B visa program and how a lack of qualified, high-skilled labor will lead to less American innovation as a whole. GamesIndustry.Biz mentions that many other companies including Activision-Blizzard, Harmonix, Insomniac Games and Unity have spoken out about these issues in the past and hope that the current issues can be resolved.

EA Merges Canadian Games Studios BioWare Montreal with Motive Studios

After being designated as a “support studio” by Electronic Arts back in May, BioWare Montreal is now being folded into the also Montreal-based EA Motive, with their staff moving into Motive’s office. A Forbes contributor notes that none of the staff has been laid off and that the team will transition into the new office over the next few weeks. Shack News reports that the team responsible for the ill-reviewed Mass Effect: Andromeda will be helping to develop a new IP while the rest of Motive is focused on Star Wars: Battlefront 2. TechRaptor covered a statement made by Electronic Arts’ CFO Blake Jorgensen that an additional 100 employees have been hired to help develop this new project.