The latter part of this year has brought us some oddities in the gaming industry. First up we had that Ashes game being recalled after release for being absolutely garbage and now we have investors suing EA Games over alleged lies about Battlefield 4.
As posted on GameInformer
“Robbins Geller Rudman & Dowd LLP have cited a precipitous drop in share value and charges that EA and some officers have violated the Securities Exchange Act. The complaint focuses on statements that assert the strength of Battlefield 4.”
It’s quite incredible that a second game has been released that is obviously not ready for the market. However instead of pulling the game from shelves EA are attempting to patch it and are downplaying the problems.
Unfortunately the investors aren’t sold and with EA’s share price dropping 28% this year already you can see why they aren’t happy.
Whether or not the investors win their case or not isn’t the biggest problem for EA right now. Rather, the main issue is that investors are losing confidence in the company as are gamers and with Titan Fall expected to be the next great game coming out of the EA stables this is the worst time for the company to go through turmoil.
If investors pull their money the financial stress on the Titan Fall development will become immense and could lead to the game being released early to try and recoup some of the development costs. If the game is released in the same state as Battlefield 4 it could be the end of EA games as a going concern.
Last Updated: December 19, 2013