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Analyst: EA Invested Roughly $80 Million In  The Old Republic
Analyst: EA Invested Roughly $80 Million In The Old Republic
May 5, 2011 | By Tom Curtis

May 5, 2011 | By Tom Curtis
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Wedbush analyst Michael Pachter has estimated that Electronic Arts invested more than $80 million in BioWare's upcoming MMO Star Wars: The Old Republic.

"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," Pachter said in an investor note this Thursday.

In addition to the game's development costs, Pachter predicted that EA will spend around $20 million on manufacturing, marketing and distribution for the highly-anticipated title.

Pachter also reaffirmed EA's previous claims, noting that The Old Republic will easily make back its investment costs even with a modest number of subscribers.

"We estimate that EA will cover its direct operating costs and break even at 500,000 subscribers (this is exceedingly conservative, and the actual figure is probably closer to 350,000)," Pachter said.

Pachter said he still believes that the BioWare-developed MMO will launch by the end of the 2011 calendar year, and that the title will contribute roughly $150 million for EA's top line in fiscal 2012.


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Comments


JB Vorderkunz
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I'm no industry vet - but isn't 20M a little low for marketing?

Zachary wilson
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dry up pachter you goon

Jeremy Glazman
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I thought "EA spends $100mil+ on MMO" was really old news.

Kale Menges
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They're banking too much on the existing Star Wars branding. What they need to do is release an HD remix of the original Knights of the Old Republic to give people a context for The Old Republic, to help distance the product from more recent things such as Star Wars: Clone Wars and Lego Star Wars, etc. (and not forgetting the bad-taste-in-the-mouth fate of Galaxies). But that could only offset so much of the risk of releasing a subscription-based MMORPG in this day and age. Don't get me wrong, Old Republic has a lot of good things going for it, but it's just so damn risky a thing... I'm sensing that Old Republic could even be partially responsible for Mass Effect 3's push into 2012 in an attempt by EA to avoid cannibalizing sales in the PC market.

David Eckelberry
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This is a collection of random thoughts without much backing, Kale. First, you realize that despite how beloved KOTOR is by fans (and by me), it never sold like gangbusters, right? Just like most non-MMO RPGs don't....



And that the Star Wars Lego games sold very, very well?



And that the Mass Effect teams in Edmonton and the TOR Austin team are working independently? And that Mass Effect 3 can't cannibalize PC sales because it is primarily a console game?



Now you are right that the business model for TOR seems dated now...

Omar Gonzalez
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I don't understand why people Hate Patcher?



seems like a nice guy, he's is just doing his work.



About the TOR I'm really not sure if the Bioware narrative will work in MMO enviroment. Doesn't seems to be suited for that. Anyway I hope it works for them, to bad they based this game in the "new star wars stuff"it's to kiddy.

Duong Nguyen
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People hate it's just a matter of fact. If your a public personality there will always be someone who hates you. Thus the term "Haterz"..

A W
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On this all depends...

[User Banned]
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This user violated Gamasutra’s Comment Guidelines and has been banned.

Brian Canary
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As usual, Pachter is way off the mark and woefully underestimating the development cost.


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