Print 62 comment(s) - last by Azethoth.. on May 15 at 1:49 AM

"Star Wars: The Old Republic" may not be released until January 2012

Analysts announced earlier this week that EA has invested over $80 million in the development of BioWare's first MMO "Star Wars: The Old Republic." 

"Star Wars: The Old Republic" is a new massively multiplayer online (MMO) game that is currently under development by BioWare and LucasArts. The game takes place 300 years after the events of "Star Wars: Knights of the Old Republic" and thousands of years before Luke Skywalker and Darth Vader, which is a fairly unexplored era of "Star Wars" chronology. 

Users will be able to choose from many different character roles such as Jedi or Sith, and give context to their personal story with the option to follow the light or the dark side of the Force. In addition, players can join friends through the game's battles.  

Now, EA has reported that its total investment in the "Star Wars" MMO has reached $80 million in development alone. 

"The contribution from the 'Star Wars' MMO is significant," said Michael Pachter, Wedbush Securities analyst. "Under the terms of its deals with LucasArts, EA is required to pay a royalty, but was required to front all of the development, marketing and distribution costs, as well as the costs of building out servers for the game. We estimate that LucasArts’ share is 33 percent of revenues, after EA recoups its investment in game development. Given that the game was in development for over four years, with an estimated 200 full-time developers working on it, we estimate that EA's investment exceeds $80 million.

"Fortunately for investors, the company expenses R&D spending, meaning that its revenues on sales of the 'Star Wars' MMO DVD will be pure profit. EA will be required to spend marketing dollars on the game, and we estimate total manufacturing, marketing and distribution spending will total around $20 million, meaning that at two million units sold, EA will generate $60 million of operating profit on the DVD sales." 

Pachter also noted that EA will not need a certain number of subscribers for "Star Wars: The Old Republic" to make a profit. 

"We estimate that EA will cover its direct operating costs and break even at 500,000 subscribers (actual number is closer to 350,000 subscribers), meaning that with 1.5 million paying subscribers, EA will have 1 million profitable subs," said Pachter. "We estimate that the incremental operating cost for each subscriber above break even is around $5 per month, so if the revenue split is 33 percent to LucasArts ($5 per subscriber per month), EA will be left with $5 per subscriber per month in operating profit. At 1 million profitable subscribers over the last six months of its fiscal year, EA should generate $30 million in operating profit from subscribers." 

EA also announced this week that the launch of "Star Wars: The Old Republic" may be delayed until January 2012. 

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

By GaryJohnson on 5/7/2011 8:00:58 AM , Rating: 2
The market reality for Blizzard is that an extremely large percentage of their player-base is using Intel Integrated graphics.

Have any credible source that backs that statement up? Steam reports that only 6% of it's users are running Intel video hardware. 92% are running nVidia and ATI. I would think that Steam probably has a similar user base to WoW.

By kmmatney on 5/9/2011 12:41:04 PM , Rating: 2
ATI and NVidia make motherboards with integrated graphics, so the number of people integrated graphics is probably higher.

By callmeroy on 5/9/2011 3:37:20 PM , Rating: 2
I'm with you -- is the "market reality comment" based on ones own opinion or is there an article floating around with someone in the know (ie Blizzard) stating that?

I tend to find it hard to believe especially because I am a wow player of almost 6 1/2 years (though I haven't played much for 2 months now)... I'm in a guild of nearly 500 players (not characters...PLAYERS...we half almost 800 "characters").... and a huge number of those players have tricked out gaming machines. More evidence is the LFG tool...which for not players is a tool to throw dungeon groups together it pulls people from both your realm and other realms (realms are servers in WoWspeak). Anyway in LFG formed groups if you ever get to chatting it up about what system you are running 95% of the time its almost always either half decent or state-of-the-art...I never hear anyone say "nah I'm just running off the mobo graphics"...

By Azethoth on 5/15/2011 1:49:47 AM , Rating: 2
Here is another take on it: each major release Blizz ups the graphics. So on my 2560 x 1600 monitor, buying the fastest single card GPU each year, I still had to turn down the settings so I do not lag out when things get tense.

"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Laptop or Tablet - Which Do You Prefer?
September 20, 2016, 6:32 AM
Update: Samsung Exchange Program Now in Progress
September 20, 2016, 5:30 AM
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki