@tes4eva Sorry, my defenses always go up when I post on this website cuz it's full of DB's around every corner. Therefore I always filter it as sarcasm. Thanks for clarifying for me. Nice to see an actual good guy around every now and then.
Star Wars: The Old Republic annual profit to hit $80 million - Analyst
Wedbush's Pachter believes EA will pay LucasArts 35% in licensing fees; EEDAR's Divnich sees "little risk of failure."
As the noise surrounding Activision Blizzard and Electronic Arts' latest military shooters fades, the battleground is shifting to the massively multiplayer online role-playing market. Earlier this week, Activision Blizzard president Bobby Kotick projected EA won't get much benefit from Star Wars: The Old Republic due to LucasArts' licensing agreement. However, a handful of analysts feel that Kotick missed the mark with that assessment.
Speaking with Eurogamer, Wedbush's Michael Pachter said that he expects EA to pay out 35 percent of SW:TOR's earnings to LucasArts, after the publisher has recouped its own costs.
"My best guess is that they will attract 1.5 million subscribers paying around $15 a month, so they should generate around $270 million in revenue," he said. "If LucasArts gets 35 percent and if EA incurs around 35 percent operating expense, they make 30 percent, or around $80 million per year, in profit. That's not bad."
Electronic Entertainment Design and Research's Jesse Divnich also believes EA stands to turn a hefty profit on its upcoming MMOG, telling Eurogamer that he expects the game to draw 3 million subscribers by next June.
"We see little risk of failure for The Old Republic," he said. "Kotick's comments are valid in the sense that licensors do take a piece of the pie and is an economical hurdle that entertainment has been struggling with for years. In the same respect, how successful would EA's MMO be without the Star Wars brand?"
"It's a give and take scenario, but given EA's historical ability to negotiate favorable license terms, I don't believe Lucas's share is a detriment to the game's profitability," he continued. "Taking into account multiple years in service and expansion packs, $500 million in total revenue is not a far stretch. If an MMO can't be profitable at $500m in revenue, then we are all doomed."
Star Wars: The Old Republic is expected to launch on the PC December 20. For more on the game, check out GameSpot's previous coverage.
Content you might like…
Users who looked at this article also looked at these content items.
Hot Stories
Newsmakers
-
Biden: No legal problem with taxing violent games
United States Vice President Joe Biden believes there is no legal restriction on ability to tax violent media. Full Story
- Posted May 14, 2013 5:50 am AEST
-
Just Cause dev promises 'holy f**king sh**' moments in future games
Avalanche Studios co-founder says developer's ambition is for action, not moments that make players cry; steampunk-style game on hold. Full Story
- Posted May 15, 2013 11:33 pm AEST
Featured Stories
-
Bungie shoots down Destiny for PS Vita rumor
Developer confirms image suggesting version of upcoming shared-world shooter in development for Sony's latest portable is a fake. Full Story
- Posted May 16, 2013 10:08 pm AEST
-
Ubisoft planning to release games more frequently
Assassin's Creed and Far Cry publisher says its network of 26 studios and over 7,000 developers will allow company to ship major franchises more regularly. Full Story
- Posted May 16, 2013 9:42 pm AEST
-
Metro: Last Light dev responds to workplace conditions claims
4A Games creative director Andrew Prokhorov thanks Jason Rubin for telling the studio's story, but says, "We deserve the ratings we get." Full Story
- Posted May 17, 2013 5:44 am AEST
-
EA opens DICE LA to make Star Wars games
DICE head would also like to poach top talent from rivals Infinity Ward and Treyarch. Full Story
- Posted May 15, 2013 8:28 pm AEST
-
EA dropping Online Passes - Report
Future EA games won't require Online Passes; the service is being scrapped after tepid player response. Full Story
- Posted May 16, 2013 1:28 pm AEST
Related Game
Star Wars: The Old Republic
- Publisher(s): Electronic Arts
- Developer(s): BioWare
- Genre: Role-Playing
- Release:
- Classification Board: PG







