WEBVTT - The Electronic Arts Story: Part Two

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<v Speaker 1>Get in touch with technology with text from how Stuff

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<v Speaker 1>Looks Dot coming every Hey there, everyone, and welcome to

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<v Speaker 1>tech Stuff. I'm Jonathan Strickland and I'm Lauren and we

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<v Speaker 1>want to get into the second part on our look

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<v Speaker 1>at e A Electronic Arts. Now, as I recall, we

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<v Speaker 1>left off in nineteen in our last episode, that is correct,

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<v Speaker 1>and Trip Hawkins the third had just departed the company

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<v Speaker 1>that he had founded to go and work on three

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<v Speaker 1>D O a and ultimately failed game console that was

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<v Speaker 1>perhaps ahead of its time. He later described the decision

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<v Speaker 1>as as having two children, one a teenager and one

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<v Speaker 1>an infant needing open heart surgery. That yeah, that's the

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<v Speaker 1>thing that he said, so subtle, Mr Hawkins, Um, well,

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<v Speaker 1>and you know it was again the three D. Oh.

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<v Speaker 1>I think the problem was again it was ahead of

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<v Speaker 1>its time. It was it was a very expensive console,

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<v Speaker 1>and ultimately people could argue that that the lack of

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<v Speaker 1>compelling games also really hurt it in those early days. Ably,

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<v Speaker 1>But it debuted like four D N dollars, which at

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<v Speaker 1>the time, yeah, well, I mean you know, yeah, yeah, well,

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<v Speaker 1>I mean you look at it in today's dollars, it

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<v Speaker 1>would be a bunch more right, right, right, yes, but

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<v Speaker 1>a console today coming out of four not unusual at all,

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<v Speaker 1>although again inflation makes that different. But the point I'm

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<v Speaker 1>trying to make is that it was the sort of

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<v Speaker 1>console that we see today. It was the kind of

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<v Speaker 1>consulate was an entertainment center. Anyway, he had moved on

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<v Speaker 1>nine two. Also, one thing I didn't mention at the

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<v Speaker 1>end of the last podcast was that was the year

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<v Speaker 1>e A purchased Origin Systems, and that's the game company

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<v Speaker 1>that was founded by Richard Garriott, the guy who created

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<v Speaker 1>the Ultimate series, and they also had an other series.

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<v Speaker 1>They had Jame's Combat simulate simulators. They also had the

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<v Speaker 1>Wing Commander series, and so that was a big move

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<v Speaker 1>on their part. But then we move on into and

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<v Speaker 1>that's when the three D O console actually hit the market. Uh.

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<v Speaker 1>And then e A also released the first Need for

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<v Speaker 1>Speed for the three D O. Because e A was

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<v Speaker 1>actually a partner in that three D O console experiment,

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<v Speaker 1>they were not the whole owners of that, which I

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<v Speaker 1>guess in retrospect, I'm sure the company thinks is a

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<v Speaker 1>good thing. But they were partners, so it wasn't like

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<v Speaker 1>Hawkins had severed all ties once he left e A. Uh. Now, again,

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<v Speaker 1>We're not going to mention every single release that Electronics

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<v Speaker 1>Arts had um Electronic Arts I should say had throughout

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<v Speaker 1>their history. It would be ridiculous. And you'd also get

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<v Speaker 1>tired of hearing a say FIFA, uh like or fourtieth

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<v Speaker 1>time we say FIFA. You just that word? First of all,

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<v Speaker 1>I didn't. If you're in the United States, you're probably thinking,

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<v Speaker 1>I don't know what that means. And even if you're not,

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<v Speaker 1>after you've heard it that many times, it's starts to

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<v Speaker 1>lose all meeting and become something of a cone that

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<v Speaker 1>we were just saying over and over to achieve enlightenment.

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<v Speaker 1>But so I don't have anything for for ninety four, Lauren,

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<v Speaker 1>do you? I don't want to skip over you if

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<v Speaker 1>you've got anything that was That was actually the year

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<v Speaker 1>that Hawkins resigned as chairman of the board for e A. Okay,

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<v Speaker 1>so now he had actually not just left as the CEO,

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<v Speaker 1>but also left the board of directors. Uh inve e

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<v Speaker 1>A acquired a company called bull Frog, which was a

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<v Speaker 1>game development studio in the United Kingdom, and they were

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<v Speaker 1>known for a couple of different series, their theme park

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<v Speaker 1>series and their series called Populus. Did you ever see Populous, Lauren,

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<v Speaker 1>I did not see Populous. I did play some of

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<v Speaker 1>the theme parks. Okay, well, Populus was a game where

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<v Speaker 1>it puts you in the role essentially as as like

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<v Speaker 1>a god, and it was your job to try and

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<v Speaker 1>shape landscape so that people could film stuff and worship you. Right, yeah,

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<v Speaker 1>this this is what Yeah, indeed, I was about to

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<v Speaker 1>say that this is what I think back and White,

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<v Speaker 1>because that was the same studio later on Black and White.

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<v Speaker 1>Definitely was was something that was inspired by the populist games.

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<v Speaker 1>You could definitely tell that Populus was was not quite

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<v Speaker 1>as sophisticated as that. And you know, there were, uh,

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<v Speaker 1>there were different ways of winning Populace. You had opponents

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<v Speaker 1>that would also have their own worshippers, and you were

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<v Speaker 1>trying to dominate the world. So if you wanted to

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<v Speaker 1>go over to the your opponent's side when your opponent

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<v Speaker 1>wasn't looking, and start digging down until all of the

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<v Speaker 1>villages were submerged in water and all the little villagers drowned,

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<v Speaker 1>and it was both entertaining and horrifying at the same time.

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<v Speaker 1>All of these series, by the way, we're serious that

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<v Speaker 1>he had published and so um so the acquisition of

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<v Speaker 1>bull Frog was kind of a good following steps since

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<v Speaker 1>they had done pretty well. Right yeah, now now he

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<v Speaker 1>has decided that they want this as an actual part

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<v Speaker 1>of their development team, not just a title that they published.

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<v Speaker 1>Once bull Frog joined the A, they the division began

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<v Speaker 1>to develop the Dungeon Keepers series, which reached some acclaim

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<v Speaker 1>I thought, I always thought it was a very entertaining series.

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<v Speaker 1>And that same year, in ninety the Sega Saturn platform launches,

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<v Speaker 1>and so does a platform that would become one of

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<v Speaker 1>the most disruptive platforms in video game console history because

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<v Speaker 1>at this point, Nintendo is pretty much the heavy hitter.

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<v Speaker 1>I mean, Nintendo is owning video game consoles. Sega keeps

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<v Speaker 1>coming out with consoles that from a specs perspective might

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<v Speaker 1>beat out whatever the Nintendo console is at that time.

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<v Speaker 1>But but just but just that the games, the programming

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<v Speaker 1>that was going on for Nintendo was incredible, right yeah,

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<v Speaker 1>the Nintendo had all the momentum, so Sega, while it

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<v Speaker 1>had its fans, just didn't have nearly as many as

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<v Speaker 1>Nintendo did. Well. Was also when we saw Sony get

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<v Speaker 1>into the game with the PlayStation console, and that really

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<v Speaker 1>shook things up, you know, a CD based console that

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<v Speaker 1>was had far more graphic ability than the Nintendo consoles

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<v Speaker 1>did uh, And that that gave e A a lot

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<v Speaker 1>of opportunities as well to develop for yet another platform,

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<v Speaker 1>because remember e A wants there to be as many

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<v Speaker 1>platforms as possible, because it means that no single platform

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<v Speaker 1>has enough power to tell e A what to do. Um.

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<v Speaker 1>And then e A also starts to port several three

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<v Speaker 1>d O titles to the Saga, Saturn, and Sony PlayStation

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<v Speaker 1>platforms in order to take advantage of the thirty two

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<v Speaker 1>bit processing power. So in this sense, they didn't have

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<v Speaker 1>to develop new titles. They just had to retool these

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<v Speaker 1>titles for the three D OH so that they would

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<v Speaker 1>work on these other systems. Now, I say, just that's

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<v Speaker 1>still a pretty big thing to have to do, but

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<v Speaker 1>it does. It's different from having to build a game

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<v Speaker 1>from the ground much. You don't have to go through

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<v Speaker 1>the whole conceptual phase at all. Uh, I don't have

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<v Speaker 1>anything for ninety six, so we're gonna go right into

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<v Speaker 1>ninety seven. Sounds good. So e A and n acquires

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<v Speaker 1>Maxis And this is this is a big one, folks,

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<v Speaker 1>because this is the company that was responsible for sim City.

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<v Speaker 1>The first sim City game came out in mind, so

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<v Speaker 1>almost a decade earlier, right and uh and since then

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<v Speaker 1>will write who is who's the designer for Maxis had

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<v Speaker 1>had been making all kinds of all kinds of related

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<v Speaker 1>titles as sim Earth, Sam Aunt. Yeah. I was a

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<v Speaker 1>big fantasy man. Yeah yeah. On the on the s

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<v Speaker 1>N E S it was. It was great Aunt simulation. Man,

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<v Speaker 1>I got it. Sounds so goofy and I had so

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<v Speaker 1>much fun playing it. I'm not going to argue with

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<v Speaker 1>the goofy part, but hey, I like lots of goofy stuff,

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<v Speaker 1>so I am not one to talk. And once e

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<v Speaker 1>A acquires Maxis, that's when will Wright starts to work

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<v Speaker 1>on a game that would become an important part of

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<v Speaker 1>e A's arsenal. In fact, you could argue it's the

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<v Speaker 1>most important game that e A ever came out with,

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<v Speaker 1>and that is the SIMS. So will Wright starts to

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<v Speaker 1>work on the SIMS back in ninety seven. It would

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<v Speaker 1>be a few years before that game would come out.

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<v Speaker 1>E A also gets into the online gaming market. They

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<v Speaker 1>launch Ultima Online, which was one of the earliest, at

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<v Speaker 1>least one of the earliest successful massively multi player online

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<v Speaker 1>role playing games in the Western Hemisphere. So Ultimate Online

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<v Speaker 1>goes live and starts to prove the model that online

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<v Speaker 1>gaming could be a thing. Keeping in mind this is

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<v Speaker 1>before broadband penetration had really spread out throughout the United States. Uh,

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<v Speaker 1>there were people who are playing this on dial ups.

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<v Speaker 1>Oh my goodness. Uh. And so it was, you know,

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<v Speaker 1>this was the earliest days of that, and it was

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<v Speaker 1>before really in those days it came down to Ultimate

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<v Speaker 1>Online or ever Quest. Those were the two big names,

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<v Speaker 1>and it wouldn't be until the world of Warcraft that

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<v Speaker 1>that dynamic gets really shaken up UM, and you had

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<v Speaker 1>people who were hardcore fans of one and hated the

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<v Speaker 1>other anyway. That same year, nine seven, bull Frog chief

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<v Speaker 1>Peter Mullineaux leaves e A to start a new studio,

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<v Speaker 1>and supposedly one of the reasons he left was that

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<v Speaker 1>he felt that e A was getting two hands on

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<v Speaker 1>on in game development, that they were interfering too much

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<v Speaker 1>in the actual development of games, and that he felt

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<v Speaker 1>that the pressure was to establish a game and then

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<v Speaker 1>just churn out sequels, right right, And this is a

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<v Speaker 1>UM is in direct opposition to ease original mode of operation,

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<v Speaker 1>wherein they were they were treating game developers with extreme

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<v Speaker 1>respect and kind of letting them do whatever they wanted

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<v Speaker 1>on the principle that whatever they wanted would be awesome. Yeah. Yeah,

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<v Speaker 1>But but since then had, as we discussed in our

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<v Speaker 1>previous episode, decided that um that, yeah, the that the

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<v Speaker 1>real way to go is to create brands and and

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<v Speaker 1>really am push the brand, find a brand that resonates

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<v Speaker 1>with an audience, and then all you have to do

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<v Speaker 1>is keep on creating uh sequels to that and that,

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<v Speaker 1>and people will buy it because you've established an audience

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<v Speaker 1>for it. This is not an unusual idea. We see

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<v Speaker 1>it all across video games. I mean you could think

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<v Speaker 1>another media too, of course. Yeah, you can think of

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<v Speaker 1>dozens of franchises that exists only and you can look

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<v Speaker 1>at entries to various franchises where you think this really

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<v Speaker 1>didn't live up to what the original was or what

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<v Speaker 1>later entries were. This was clearly something where a company

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<v Speaker 1>was trying to cash in on a previously existing title.

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<v Speaker 1>Um and in some cases it's it can be the

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<v Speaker 1>death of a franchise or or even an entire company.

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<v Speaker 1>Well then moving on, in n Electronic Arts moves its

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<v Speaker 1>headquarters from San Mateo to Redwood City, and e A

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<v Speaker 1>also acquires yet another company, Westwood Studios, which was the

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<v Speaker 1>company that developed the Command and Conqueror series, which are

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<v Speaker 1>real time strategy games. UM. I'm terrible at real time

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<v Speaker 1>strategy games. I'm just I can't. I don't. I don't

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<v Speaker 1>have a brain from either. I can't. I can't manage. Yeah,

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<v Speaker 1>I cannot manage that many assets. I can't keep track

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<v Speaker 1>of everything. Obviously, if I were going up against Kirk

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<v Speaker 1>and Spock, they would be able to defeat me because

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<v Speaker 1>I can't think three dimensionally. UM. Also, UM Electronic Arts

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<v Speaker 1>formed a partnership with Square, being the Japanese game company

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<v Speaker 1>that's that's most famous for for RPGs like say Final Fantasy.

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<v Speaker 1>You might have heard of it. UM and UH, Square

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<v Speaker 1>and and e A worked out the steal. They formed

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<v Speaker 1>a Square e A here in the States and e

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<v Speaker 1>A Square over in Japan. UH. The idea being to

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<v Speaker 1>transfer titles that were happening in each place to the

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<v Speaker 1>other and and see see how they did. You know,

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<v Speaker 1>try to try to bring stuff that wasn't being seen

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<v Speaker 1>in each country over to the other, as there were

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<v Speaker 1>I think, especially in the Final Fantasy series, if I'm

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<v Speaker 1>not mistaken. There were a couple of entries in the

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<v Speaker 1>Final Fantasy series that happened in Japan that at that

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<v Speaker 1>point had never been seen in the United States. Correct

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<v Speaker 1>and uh and and people were you know, urpgs had

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<v Speaker 1>a little bit of a cult following over here. But

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<v Speaker 1>but none of the really big cool titles were coming

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<v Speaker 1>over and so and so. So I meant that you

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<v Speaker 1>had to have like a Japanese game console, and then

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<v Speaker 1>you had to import the titles because of course, the

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<v Speaker 1>the media for the Japanese consoles would not work on

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<v Speaker 1>the United States. It literally would not play correct. I mean,

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<v Speaker 1>you know, aside from the fact that you would have

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<v Speaker 1>to learn Japanese in order to play them very effectively,

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<v Speaker 1>which is a whole other issue. But um but yeah,

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<v Speaker 1>so so each square e A and A Square each

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<v Speaker 1>had a stake in the other um which which which

0:12:20.720 --> 0:12:23.000
<v Speaker 1>is an interesting fun business model. And uh. In that

0:12:23.120 --> 0:12:26.400
<v Speaker 1>same year, they brought um Bashida Blade to Parasite Eve

0:12:27.000 --> 0:12:30.079
<v Speaker 1>and Zeno Gears all to the American market for the PlayStation.

0:12:30.600 --> 0:12:34.679
<v Speaker 1>Huh wow. So another big move on e A's part.

0:12:34.760 --> 0:12:38.720
<v Speaker 1>Also kind of interesting to see a an alliance in

0:12:38.760 --> 0:12:42.079
<v Speaker 1>the video game world. Uh. Some people would call that,

0:12:42.600 --> 0:12:45.600
<v Speaker 1>UH frightening, because you know, when you're talking about being

0:12:45.640 --> 0:12:47.600
<v Speaker 1>such a big power player and you already have a

0:12:47.600 --> 0:12:52.280
<v Speaker 1>reputation for scooping up smaller companies and then to make

0:12:52.320 --> 0:12:55.400
<v Speaker 1>an alliance with another big company, just that starts to

0:12:55.440 --> 0:12:57.959
<v Speaker 1>make other people feel really nervous. Kind of nervous. Yeah.

0:12:58.240 --> 0:13:03.840
<v Speaker 1>In seven years, after e A had acquired Origin Systems,

0:13:04.160 --> 0:13:07.240
<v Speaker 1>Richard Garriott, who was the founder of Origin, leaves e A.

0:13:07.480 --> 0:13:10.640
<v Speaker 1>He had finished work on Ultimate nine, which was the

0:13:10.720 --> 0:13:15.480
<v Speaker 1>final UH entry into the Ultimate series. Besides the online

0:13:15.520 --> 0:13:19.960
<v Speaker 1>stuff and UH, he also seems to feel very similar

0:13:20.000 --> 0:13:22.439
<v Speaker 1>to the way other people who departed e A felt

0:13:22.440 --> 0:13:24.959
<v Speaker 1>that that it was just it was not the most

0:13:25.040 --> 0:13:29.280
<v Speaker 1>ideal creative environment, right. Apparently a bunch of his former

0:13:29.520 --> 0:13:32.400
<v Speaker 1>team members, of former Ultimate team members felt very much

0:13:32.440 --> 0:13:35.120
<v Speaker 1>the same way, because after e A canceled Ultimate Online

0:13:35.160 --> 0:13:37.640
<v Speaker 1>to UM at the time, a bunch of a bunch

0:13:37.679 --> 0:13:40.040
<v Speaker 1>of them jumped ship to go join Garriott at the

0:13:40.120 --> 0:13:44.560
<v Speaker 1>new company that he had formed, Destination Games. UH. Garriott

0:13:44.640 --> 0:13:47.480
<v Speaker 1>would not see very much success here in the United

0:13:47.520 --> 0:13:51.960
<v Speaker 1>States over the next several years, but recently interesting thing

0:13:52.040 --> 0:13:53.840
<v Speaker 1>is that he had a kick started campaign for a

0:13:53.840 --> 0:13:58.040
<v Speaker 1>new game that is inspired by his old Ultimate series

0:13:58.480 --> 0:14:02.120
<v Speaker 1>and the kickstarter funded in like two days, it was,

0:14:02.520 --> 0:14:04.800
<v Speaker 1>and then went on to meet lots and lots of

0:14:04.840 --> 0:14:07.959
<v Speaker 1>stretch goals. Anyway back to E A. H. Still in

0:14:08.920 --> 0:14:11.959
<v Speaker 1>they published their first Medal of Honor game, which is

0:14:12.000 --> 0:14:15.320
<v Speaker 1>again another one of those big franchises that UM that

0:14:15.320 --> 0:14:18.040
<v Speaker 1>they're very well known for, and that debuted on the

0:14:18.080 --> 0:14:22.720
<v Speaker 1>PlayStation platform. UH. And that same year, Sega debuts a

0:14:22.800 --> 0:14:28.200
<v Speaker 1>new video game console called the Dreamcastcast. I own a Dreamcast.

0:14:29.440 --> 0:14:31.720
<v Speaker 1>I like it a lot. I actually got my Dreamcast

0:14:31.840 --> 0:14:34.800
<v Speaker 1>after the Dreamcast had already run its course and was

0:14:34.840 --> 0:14:38.440
<v Speaker 1>no longer in production. UH. And I inherited a lot

0:14:38.440 --> 0:14:41.040
<v Speaker 1>of games from a friend of mine who was not

0:14:41.120 --> 0:14:43.840
<v Speaker 1>really playing them anymore. And you know, I think Dreamcast

0:14:43.880 --> 0:14:45.520
<v Speaker 1>it's another one of those things where we've done an

0:14:45.520 --> 0:14:49.040
<v Speaker 1>episode of about Sega. We did a full thing about

0:14:49.040 --> 0:14:54.600
<v Speaker 1>Sega's uh successes, and it's it's notable failures and it's interesting. Again,

0:14:54.760 --> 0:14:58.479
<v Speaker 1>the Dreamcast was one of those consoles that was phenomenal.

0:14:59.240 --> 0:15:02.080
<v Speaker 1>It performed really well, particularly if you stacked it up

0:15:02.120 --> 0:15:05.000
<v Speaker 1>against its competitors, but it just, you know, it just

0:15:05.080 --> 0:15:08.560
<v Speaker 1>never never, It never cut onto the to the extent

0:15:08.640 --> 0:15:11.560
<v Speaker 1>that it needed to in order for viable platform. I

0:15:11.560 --> 0:15:13.400
<v Speaker 1>think it was a little bit niche for for the

0:15:13.520 --> 0:15:17.480
<v Speaker 1>for the mainstream American market real time especially um. Also

0:15:17.600 --> 0:15:19.600
<v Speaker 1>that year was when Square e A put out the

0:15:19.640 --> 0:15:22.400
<v Speaker 1>Final Fantasy Anthology, which brought some of those games that

0:15:22.440 --> 0:15:25.640
<v Speaker 1>had not been published yet in America over here. So

0:15:26.520 --> 0:15:30.320
<v Speaker 1>in in two thousand, that's when the SIMS debuts, and

0:15:30.360 --> 0:15:34.960
<v Speaker 1>it is a huge success, and it really gave U

0:15:35.400 --> 0:15:39.160
<v Speaker 1>e A a access to a brand new audience, which

0:15:39.200 --> 0:15:42.400
<v Speaker 1>we usually referred to as women. It turned out, it

0:15:42.440 --> 0:15:44.280
<v Speaker 1>turned out that they didn't know at the time when

0:15:44.280 --> 0:15:46.800
<v Speaker 1>they were producing the SIMS. They had no idea that

0:15:46.920 --> 0:15:50.200
<v Speaker 1>was going to resonate with a female audience. And in fact,

0:15:50.200 --> 0:15:52.200
<v Speaker 1>when they were first building the SIMS, it was just

0:15:52.240 --> 0:15:57.240
<v Speaker 1>going to be a a way of building homes. And

0:15:57.320 --> 0:16:00.760
<v Speaker 1>then they created these little virtual characters to inhabit the

0:16:00.760 --> 0:16:03.520
<v Speaker 1>homes and realized that it was way more interesting to

0:16:03.520 --> 0:16:05.720
<v Speaker 1>see what the virtual characters were up to than to

0:16:05.840 --> 0:16:09.040
<v Speaker 1>build out the houses. So that's when the SIMS focus

0:16:09.160 --> 0:16:12.720
<v Speaker 1>shifted to these virtual people, and your job was to

0:16:12.800 --> 0:16:15.480
<v Speaker 1>give them as much of a life as you possibly could,

0:16:15.560 --> 0:16:19.960
<v Speaker 1>which became increasingly difficult than the game where you're thinking,

0:16:20.080 --> 0:16:22.280
<v Speaker 1>I don't have enough time. That's just like real life.

0:16:22.280 --> 0:16:24.520
<v Speaker 1>I don't have enough hours to give this person a

0:16:24.600 --> 0:16:28.720
<v Speaker 1>good job and a and a satisfying social life, still

0:16:28.800 --> 0:16:31.480
<v Speaker 1>have them go to the bathroom without having a terrible

0:16:31.520 --> 0:16:35.200
<v Speaker 1>accident in the middle of the living room. But uh, Anyway,

0:16:35.280 --> 0:16:38.640
<v Speaker 1>it was a huge performer, and they immediately started to

0:16:38.640 --> 0:16:42.200
<v Speaker 1>to develop expansion packs for the SIMS and also go

0:16:42.280 --> 0:16:45.520
<v Speaker 1>into development for the sequels to the SIMS, because, I mean,

0:16:45.760 --> 0:16:48.400
<v Speaker 1>it was clear they had touched the nerve. And that's

0:16:48.480 --> 0:16:51.600
<v Speaker 1>also the year in two thousand, that's when Sony launched

0:16:51.760 --> 0:16:56.760
<v Speaker 1>the PlayStation two. Yeah. Um. Meanwhile, back on the PlayStation one,

0:16:56.840 --> 0:16:59.360
<v Speaker 1>Square e A put out Crymo Cross that year, which

0:16:59.440 --> 0:17:02.480
<v Speaker 1>is my the only RPG that I've ever played all

0:17:02.480 --> 0:17:05.080
<v Speaker 1>the way through. I'm not really an RPG person. I

0:17:05.119 --> 0:17:08.040
<v Speaker 1>love that game with a burning and fiery passion. It is.

0:17:08.160 --> 0:17:10.600
<v Speaker 1>It is the best. Um. But but I think that

0:17:10.640 --> 0:17:12.919
<v Speaker 1>it's interesting that, uh. I mean, although it had been

0:17:12.920 --> 0:17:16.639
<v Speaker 1>out already in Japan, I think it. You know, they

0:17:16.640 --> 0:17:19.680
<v Speaker 1>were like, no, that's PlayStation two, whatever, this one's fine

0:17:19.680 --> 0:17:23.119
<v Speaker 1>on the PS. It'll still sell really well. And Sony

0:17:23.240 --> 0:17:27.080
<v Speaker 1>was very good about supporting their old consoles even when

0:17:27.119 --> 0:17:30.840
<v Speaker 1>they're introducing a new one. PlayStation two games were developed

0:17:30.840 --> 0:17:35.680
<v Speaker 1>for the PlayStation two well after PlayStation three debuts, so um,

0:17:35.720 --> 0:17:40.040
<v Speaker 1>they have a very different strategy compared to say Microsoft.

0:17:40.480 --> 0:17:43.440
<v Speaker 1>And speaking of Microsoft, in two thousand one, that's when

0:17:43.480 --> 0:17:46.360
<v Speaker 1>Microsoft launched the Xbox, So now we have even more

0:17:46.440 --> 0:17:49.639
<v Speaker 1>competition in the video game console world. At this point,

0:17:49.640 --> 0:17:53.600
<v Speaker 1>e is just having kittens. Nintendo launched the game Cube,

0:17:53.960 --> 0:17:56.960
<v Speaker 1>and EA starts developed games for all the three major

0:17:57.119 --> 0:18:01.800
<v Speaker 1>console platforms, which of course does not include Sad Trombone.

0:18:02.240 --> 0:18:07.000
<v Speaker 1>So Xbox, PlayStation two, and GameCube are all great platforms

0:18:07.040 --> 0:18:09.000
<v Speaker 1>for e A to develop for. They just they see

0:18:09.000 --> 0:18:15.200
<v Speaker 1>there as endless opportunity. So uh. They then that same

0:18:15.280 --> 0:18:19.480
<v Speaker 1>year closed the Bullfrog division of e A. Now this

0:18:19.640 --> 0:18:22.320
<v Speaker 1>this kind of brings us to another thing that people

0:18:22.359 --> 0:18:24.439
<v Speaker 1>have criticized e A for, not just the fact that

0:18:24.480 --> 0:18:26.679
<v Speaker 1>they bought up companies, but that they would later go

0:18:26.720 --> 0:18:29.159
<v Speaker 1>on to close them when they realized that they weren't

0:18:29.640 --> 0:18:31.879
<v Speaker 1>performing quite as well as they want to. Yeah, they

0:18:32.119 --> 0:18:34.679
<v Speaker 1>just the things weren't working out, And a lot of

0:18:34.720 --> 0:18:36.760
<v Speaker 1>the people who worked for these divisions came out and

0:18:36.760 --> 0:18:38.640
<v Speaker 1>said well, the reason things didn't work out is because

0:18:38.640 --> 0:18:42.840
<v Speaker 1>they were so adamant on us producing a brand and

0:18:42.920 --> 0:18:45.520
<v Speaker 1>just concentrating on that brand as opposed to letting us

0:18:45.600 --> 0:18:48.440
<v Speaker 1>develop do what we do, which is developed games. And

0:18:48.560 --> 0:18:51.440
<v Speaker 1>so you have this series of stories of all these

0:18:51.480 --> 0:18:54.639
<v Speaker 1>different divisions being or different companies rather being bought up

0:18:54.680 --> 0:18:57.960
<v Speaker 1>and turned into divisions for e A later getting closed.

0:18:58.440 --> 0:19:01.920
<v Speaker 1>Um that some would say that all e A was

0:19:01.960 --> 0:19:04.480
<v Speaker 1>really doing was buying up competition and shutting it down.

0:19:05.160 --> 0:19:08.359
<v Speaker 1>You know that that ultimately that's what turned out to

0:19:08.520 --> 0:19:10.840
<v Speaker 1>be the case. Uh oh yeah. Whether or not it

0:19:10.880 --> 0:19:14.240
<v Speaker 1>was intentional is absolutely you know. That's that's that's completely

0:19:14.280 --> 0:19:16.000
<v Speaker 1>beside the point. It didn't matter if it was intentional

0:19:16.080 --> 0:19:19.399
<v Speaker 1>or not. That was the effect, right, So, uh it was.

0:19:19.560 --> 0:19:21.960
<v Speaker 1>It was kind of rough. And around that same time,

0:19:22.000 --> 0:19:25.119
<v Speaker 1>e A starts to make licensing agreements to make games

0:19:25.160 --> 0:19:28.600
<v Speaker 1>based on films and other properties. Uh. These included big

0:19:28.720 --> 0:19:32.080
<v Speaker 1>name properties like Lord of the Rings, Harry Potter, The Godfather,

0:19:32.160 --> 0:19:35.960
<v Speaker 1>and James Bond. I think that that fits in really

0:19:35.960 --> 0:19:38.280
<v Speaker 1>well with their strategy of of latching onto brands and

0:19:38.320 --> 0:19:40.960
<v Speaker 1>not necessarily producing the best games because a lot of

0:19:40.960 --> 0:19:44.280
<v Speaker 1>those titles, especially in those early days were not not playable.

0:19:44.320 --> 0:19:46.280
<v Speaker 1>I mean, and and that's that that goes back all

0:19:46.320 --> 0:19:48.800
<v Speaker 1>the way, you know, and any film title game is

0:19:48.880 --> 0:19:50.920
<v Speaker 1>kind of spotty. There. There are a lot of times

0:19:50.920 --> 0:19:54.600
<v Speaker 1>where I feel like like companies rely very heavily on

0:19:54.800 --> 0:19:59.640
<v Speaker 1>the name of the franchise to sell copies, and so

0:19:59.720 --> 0:20:02.520
<v Speaker 1>they're for the amount of time and effort you need

0:20:02.560 --> 0:20:06.520
<v Speaker 1>to go in and build a very compelling game sometimes

0:20:06.920 --> 0:20:11.120
<v Speaker 1>slips through the cracks, so um, you know, in that case,

0:20:11.200 --> 0:20:12.800
<v Speaker 1>you end up getting these games that are based on

0:20:12.880 --> 0:20:16.000
<v Speaker 1>these beloved franchises, but they failed to really live up

0:20:16.040 --> 0:20:20.359
<v Speaker 1>to gamer expectations. This happens. I mean, you can spend

0:20:20.400 --> 0:20:23.320
<v Speaker 1>hours naming all the superhero games that just didn't live

0:20:23.400 --> 0:20:25.880
<v Speaker 1>up to expectations. Not you know, there are a few

0:20:25.960 --> 0:20:29.560
<v Speaker 1>that have been phenomenal, but they are way more that weren't.

0:20:29.840 --> 0:20:35.240
<v Speaker 1>So it's not not a problem that only e A possesses. Certainly,

0:20:35.359 --> 0:20:38.000
<v Speaker 1>certainly not. Also in two thousand and one, I should

0:20:38.000 --> 0:20:40.640
<v Speaker 1>put in that um square A put out Final Fantasy ten,

0:20:41.240 --> 0:20:43.720
<v Speaker 1>So that was that was one of those I remember

0:20:43.720 --> 0:20:46.320
<v Speaker 1>seeing the previous for Final Fantasy ten when that was

0:20:46.359 --> 0:20:48.879
<v Speaker 1>coming out and thinking that that looked like a particularly

0:20:49.600 --> 0:20:54.800
<v Speaker 1>beautiful game at that time. But things have changed. It

0:20:54.880 --> 0:20:58.679
<v Speaker 1>doesn't Things that were once the most gorgeous thing you

0:20:58.680 --> 0:21:02.359
<v Speaker 1>could imagine have not necessarily aged. Well, do you have

0:21:02.400 --> 0:21:05.080
<v Speaker 1>anything for two two? I do not excellent. Two thousand three,

0:21:05.520 --> 0:21:08.679
<v Speaker 1>e A shuts down Westwood Studios and moves all the

0:21:08.720 --> 0:21:12.760
<v Speaker 1>remaining stuff to e A's Los Angeles studio. The Westwood

0:21:12.760 --> 0:21:15.320
<v Speaker 1>was in Las Vegas, and so they shut that one down.

0:21:15.359 --> 0:21:18.280
<v Speaker 1>So there's another example. They did not keep everybody. They

0:21:18.359 --> 0:21:21.040
<v Speaker 1>laid off quite a few people, but the people who

0:21:21.080 --> 0:21:24.560
<v Speaker 1>did remain were then moved to Los Angeles. UH. And

0:21:24.640 --> 0:21:31.920
<v Speaker 1>then two thousand four, wait, Lauren, I didn't see your

0:21:32.040 --> 0:21:35.560
<v Speaker 1>high sign. My bad. We have we have an intricate

0:21:35.560 --> 0:21:37.760
<v Speaker 1>system of hand signals going on in the background here,

0:21:37.880 --> 0:21:41.959
<v Speaker 1>I know. Two thousand three, UH Square decided UM their

0:21:42.080 --> 0:21:45.359
<v Speaker 1>their relationship with EA had been slightly degraded, and also

0:21:45.400 --> 0:21:47.520
<v Speaker 1>they had been UM flirting a little bit with with

0:21:47.680 --> 0:21:50.520
<v Speaker 1>Enix Studios over in Japan and UH and so Square

0:21:50.560 --> 0:21:53.439
<v Speaker 1>dissolved their relationship with e A, UM bought back all

0:21:53.480 --> 0:21:56.760
<v Speaker 1>of their shares and formed Square Enix, which would continue

0:21:56.800 --> 0:22:00.160
<v Speaker 1>to produce the rest of the series that people known

0:22:00.200 --> 0:22:04.240
<v Speaker 1>for Excellent. Well excellent for them, not so great for

0:22:04.280 --> 0:22:07.120
<v Speaker 1>e A. Necessarily. In two thousand four, e A went

0:22:07.119 --> 0:22:11.320
<v Speaker 1>ahead and dissolved the Origin Systems division, so that was

0:22:11.400 --> 0:22:14.320
<v Speaker 1>the ultimately the division that produced the Ultimate Games. That

0:22:14.359 --> 0:22:18.320
<v Speaker 1>one was formally no more as of two thousand four.

0:22:18.960 --> 0:22:22.199
<v Speaker 1>E A also acquired Criterion, which was that was the

0:22:22.320 --> 0:22:27.080
<v Speaker 1>company that had developed the Burnout games. Anyone who's familiar

0:22:27.080 --> 0:22:30.960
<v Speaker 1>with those the driving games that get really super crazy, Yeah,

0:22:31.640 --> 0:22:34.400
<v Speaker 1>I really love those games. I'm not a big driving

0:22:34.600 --> 0:22:38.400
<v Speaker 1>game kind of guy, but those particularly, they're very arcady. Yeah. Yeah,

0:22:38.400 --> 0:22:41.000
<v Speaker 1>they're they're a little bit less focused on the physicalities

0:22:41.000 --> 0:22:43.280
<v Speaker 1>of driving, and so if you're not a huge car

0:22:43.320 --> 0:22:46.119
<v Speaker 1>buff the Burnout series, it's pretty fun. All the crashing

0:22:46.160 --> 0:22:48.840
<v Speaker 1>parts other games don't let you do. Yeah, the crashing

0:22:48.880 --> 0:22:51.960
<v Speaker 1>parts are pretty pretty spectacular and play a large part

0:22:52.000 --> 0:22:54.880
<v Speaker 1>in most of those games. Uh and then there. That

0:22:54.920 --> 0:22:57.719
<v Speaker 1>was the same year that someone on live journal who

0:22:57.840 --> 0:23:03.320
<v Speaker 1>had the handle e A Spouse posted a rather uh

0:23:03.840 --> 0:23:08.119
<v Speaker 1>critical post about e A, saying that they had some

0:23:08.760 --> 0:23:12.480
<v Speaker 1>draconian practices as far as employment goes, that people were

0:23:12.920 --> 0:23:17.520
<v Speaker 1>being forced to work super long hours six days out

0:23:17.520 --> 0:23:21.719
<v Speaker 1>of the week, they weren't getting compensated for overtime. Um,

0:23:21.760 --> 0:23:27.919
<v Speaker 1>there were a lot of pretty ugly accusations and eventually

0:23:28.280 --> 0:23:32.320
<v Speaker 1>some uh, some spouses and some employees of e A

0:23:32.480 --> 0:23:35.160
<v Speaker 1>got together and they filed a class action lawsuit, in fact,

0:23:35.200 --> 0:23:39.320
<v Speaker 1>a few class action lawsuits against e A, and that

0:23:39.520 --> 0:23:42.439
<v Speaker 1>ended up leading to massive changes in the A and

0:23:42.560 --> 0:23:45.000
<v Speaker 1>in the industry in general, because other companies saw what

0:23:45.080 --> 0:23:47.600
<v Speaker 1>was happening and they thought, we better fixed this before

0:23:47.640 --> 0:23:51.080
<v Speaker 1>it happens to us. So uh. In two thousand and six,

0:23:51.720 --> 0:23:54.679
<v Speaker 1>e A settled a lawsuit that was brought against it

0:23:54.720 --> 0:23:58.159
<v Speaker 1>by a bunch of graphic artists and awarded the graphic

0:23:58.240 --> 0:24:03.040
<v Speaker 1>artists fifteen point six million dollars in unpaid overtime. And

0:24:03.080 --> 0:24:07.600
<v Speaker 1>in two thousand seven, the court awarded plaintiffs of a

0:24:07.640 --> 0:24:12.320
<v Speaker 1>class action lawsuit fourteen point nine million dollars and unpaid overtime.

0:24:12.400 --> 0:24:14.119
<v Speaker 1>So this this is a different group. It's not the

0:24:14.160 --> 0:24:17.680
<v Speaker 1>same one twice. So yeah, that was a big deal.

0:24:17.920 --> 0:24:21.560
<v Speaker 1>And obviously e A did not want to court any

0:24:21.680 --> 0:24:24.919
<v Speaker 1>more problems down the line, and so they started to

0:24:24.920 --> 0:24:29.280
<v Speaker 1>really take a look for UH. And in two thousand five,

0:24:29.920 --> 0:24:34.320
<v Speaker 1>e A purchased jam Debt Mobile. So two thousand five,

0:24:34.359 --> 0:24:37.440
<v Speaker 1>this is before the iPhone comes out. EA makes its

0:24:37.480 --> 0:24:41.600
<v Speaker 1>first move into the mobile gaming world, uh, for for phones,

0:24:42.000 --> 0:24:45.280
<v Speaker 1>not not mobile devices like game Boy or whatever. You know.

0:24:45.359 --> 0:24:47.560
<v Speaker 1>It had been developing games for platforms like that for

0:24:47.600 --> 0:24:49.960
<v Speaker 1>a while, but this was the first time it started

0:24:49.960 --> 0:24:53.320
<v Speaker 1>to really look into using um cell phones, not even

0:24:53.359 --> 0:24:57.119
<v Speaker 1>smartphones yet as a potential gaming platform. And uh, and

0:24:57.760 --> 0:25:00.920
<v Speaker 1>that was a smart move. I mean, we're seeing more

0:25:00.960 --> 0:25:04.520
<v Speaker 1>and more that mobile devices are making a huge impact

0:25:04.560 --> 0:25:08.720
<v Speaker 1>on the gaming industry. So that was a Whoever was

0:25:08.800 --> 0:25:11.680
<v Speaker 1>the person who said we should do this was really

0:25:11.960 --> 0:25:14.360
<v Speaker 1>they were really looking ahead. And that's also the year

0:25:14.359 --> 0:25:16.880
<v Speaker 1>two thousand five would be the year when Microsoft launched

0:25:16.960 --> 0:25:21.560
<v Speaker 1>the Xbox three sixty UM and so that that brings

0:25:21.600 --> 0:25:24.320
<v Speaker 1>us about to the halfway points. So before we dive

0:25:24.359 --> 0:25:26.760
<v Speaker 1>into the second half, I wanted to take a quick

0:25:26.800 --> 0:25:32.320
<v Speaker 1>break and thank our sponsor. Alright, so let's see. I

0:25:32.359 --> 0:25:34.320
<v Speaker 1>think according to my notes, we left off in two

0:25:34.359 --> 0:25:38.719
<v Speaker 1>thousand five, So two thousand six, e A acquires Mythic Entertainment.

0:25:39.640 --> 0:25:43.159
<v Speaker 1>Mythic Entertainment was responsible for the RPG, the m m

0:25:43.240 --> 0:25:47.200
<v Speaker 1>O RPG Dark Age of Camelot that they viewed back

0:25:47.200 --> 0:25:50.960
<v Speaker 1>in two thousand one, So now e A has decided

0:25:51.000 --> 0:25:53.760
<v Speaker 1>to acquire another M M O RPG. They saw that

0:25:53.840 --> 0:25:58.720
<v Speaker 1>as a way of of maintaining a steady stream of revenue.

0:25:58.760 --> 0:26:01.679
<v Speaker 1>You've got all these people who are subscribing, So that

0:26:01.800 --> 0:26:04.359
<v Speaker 1>was the strategy there, and that was the year the

0:26:04.359 --> 0:26:08.120
<v Speaker 1>e A also acquired Digital Illusions CE better known as

0:26:08.240 --> 0:26:13.080
<v Speaker 1>Dice and Dice is the company that made Battlefield nineteen two.

0:26:13.920 --> 0:26:16.679
<v Speaker 1>So two thousand six is also the year that Sony

0:26:16.760 --> 0:26:20.360
<v Speaker 1>launched the PlayStation three and and Nintendo launched the week exactly,

0:26:20.680 --> 0:26:23.040
<v Speaker 1>both of them one year behind the Xbox three six,

0:26:23.200 --> 0:26:27.120
<v Speaker 1>which had had a head start uh and uh, well

0:26:27.200 --> 0:26:30.000
<v Speaker 1>not a full year, but several months behind anyway. But

0:26:31.200 --> 0:26:33.960
<v Speaker 1>also what I thought was interesting was I found a

0:26:34.280 --> 0:26:38.720
<v Speaker 1>statistic here from Bloomberg Business Week that said it was

0:26:39.200 --> 0:26:41.440
<v Speaker 1>an article that was published in two thousand six, So

0:26:41.600 --> 0:26:43.360
<v Speaker 1>that's why I put it here because we're talking about

0:26:43.359 --> 0:26:45.600
<v Speaker 1>two thousand and six here. They said that from nine

0:26:46.680 --> 0:26:49.800
<v Speaker 1>until present day, which at that time was two thousand six,

0:26:50.200 --> 0:26:53.880
<v Speaker 1>e A averaged about one point two acquisitions per year.

0:26:54.000 --> 0:26:56.600
<v Speaker 1>It was buying up more than a company per year

0:26:56.680 --> 0:26:58.960
<v Speaker 1>if you average it out over those years, and that

0:26:59.160 --> 0:27:02.000
<v Speaker 1>one third of the companies that had purchased in it

0:27:02.640 --> 0:27:08.000
<v Speaker 1>eventually shut down. So that's again showing that that kind

0:27:08.000 --> 0:27:11.000
<v Speaker 1>of trend that I talked about earlier, the criticism that

0:27:11.040 --> 0:27:13.639
<v Speaker 1>the people have laid against it, saying, you're buying up

0:27:13.640 --> 0:27:19.080
<v Speaker 1>these companies and when you are, uh, and you stripped

0:27:19.119 --> 0:27:22.560
<v Speaker 1>the industry of the talent these people have, and then

0:27:22.840 --> 0:27:25.160
<v Speaker 1>you end up closing it down when it doesn't meet

0:27:25.200 --> 0:27:28.200
<v Speaker 1>whatever your performance measurements are. It's certainly not to say

0:27:28.200 --> 0:27:29.879
<v Speaker 1>that those people didn't go on to do other things,

0:27:30.040 --> 0:27:34.240
<v Speaker 1>but but yeah, yeah, but and it's not necessarily it's

0:27:34.240 --> 0:27:38.280
<v Speaker 1>not necessarily the good business model for anyone in the industry,

0:27:38.119 --> 0:27:40.440
<v Speaker 1>anyone else. And the big criticism would be those those

0:27:40.440 --> 0:27:43.359
<v Speaker 1>guys and those men and women could have been developing

0:27:43.640 --> 0:27:47.400
<v Speaker 1>games during that time that would have potentially changed the industry,

0:27:47.440 --> 0:27:50.600
<v Speaker 1>but they couldn't because they were under contract or part

0:27:50.720 --> 0:27:53.840
<v Speaker 1>part of this larger organization where they had nowhere else

0:27:53.880 --> 0:27:56.240
<v Speaker 1>to go at that point. Um, yeah, I mean it's

0:27:57.440 --> 0:28:00.120
<v Speaker 1>from from e A's perspective, it's doing all the smart

0:28:00.160 --> 0:28:03.399
<v Speaker 1>business moves, so they're from a gamer's perspective or an

0:28:03.400 --> 0:28:05.840
<v Speaker 1>industry analysts perspective, they might say this is not good

0:28:05.880 --> 0:28:07.680
<v Speaker 1>for the industry or the gamer might say this isn't

0:28:07.680 --> 0:28:09.600
<v Speaker 1>good for me because I'm not getting great games out

0:28:09.640 --> 0:28:12.120
<v Speaker 1>of it. E A's point of view is that this

0:28:12.200 --> 0:28:16.480
<v Speaker 1>is I'm making money, yeah, solidifying my position. Money. Yeah yeah.

0:28:16.520 --> 0:28:19.640
<v Speaker 1>Money is thea when you were a business turns out?

0:28:21.560 --> 0:28:25.000
<v Speaker 1>Yeah yeah. And I know this isn't financial stuff. So

0:28:25.119 --> 0:28:27.040
<v Speaker 1>I didn't mean to blow your minds there about how

0:28:27.160 --> 0:28:31.520
<v Speaker 1>money is. Okay. So two thousand seven, e A acquires BioWare.

0:28:32.560 --> 0:28:35.480
<v Speaker 1>BioWare made some of my favorite games of all times.

0:28:35.480 --> 0:28:39.760
<v Speaker 1>Still does uh Bolter's Gate. I love the Ball's Gate games,

0:28:39.920 --> 0:28:44.360
<v Speaker 1>but the kicking for just this um there's a fantastic

0:28:44.400 --> 0:28:48.400
<v Speaker 1>character who has a little hamster and he shouts out

0:28:48.480 --> 0:28:50.520
<v Speaker 1>random things when you go into battle with him, and

0:28:50.680 --> 0:28:55.240
<v Speaker 1>it's endlessly entertaining. They also made Planescape Torment. They made

0:28:55.280 --> 0:28:58.400
<v Speaker 1>the Star Wars Nights the Old Republic games Cotour, which

0:28:58.720 --> 0:29:01.120
<v Speaker 1>again I was a huge fan of the Cotour games.

0:29:01.120 --> 0:29:04.320
<v Speaker 1>They made Mass Effect, which I've played a little bit of.

0:29:04.360 --> 0:29:06.160
<v Speaker 1>I never played it all the way through, and that

0:29:06.360 --> 0:29:09.200
<v Speaker 1>Frederick would probably hit me if he were in the

0:29:09.280 --> 0:29:11.600
<v Speaker 1>room because it's actually his copy of the game that

0:29:11.680 --> 0:29:15.040
<v Speaker 1>I have and I haven't returned it. Yet um that

0:29:15.160 --> 0:29:19.360
<v Speaker 1>year they also acquired Pandemic Studios, which was the company

0:29:19.360 --> 0:29:22.560
<v Speaker 1>that brought us Star Wars battle Front and also the

0:29:22.600 --> 0:29:25.680
<v Speaker 1>game Destroy All Humans, as well as some other titles.

0:29:26.280 --> 0:29:30.120
<v Speaker 1>And that was the year that that Probst steps down

0:29:30.440 --> 0:29:34.040
<v Speaker 1>as CEO. He had been CEO since Hawkins had left

0:29:34.080 --> 0:29:38.080
<v Speaker 1>the company. It was supposed to be more temporary than that,

0:29:38.240 --> 0:29:40.640
<v Speaker 1>wasn't it. I think I believe so. But he he

0:29:40.880 --> 0:29:44.360
<v Speaker 1>had led the company throughout those years, uh so from

0:29:45.720 --> 0:29:48.719
<v Speaker 1>two thousand and seven, and he's still on the board,

0:29:48.880 --> 0:29:54.040
<v Speaker 1>but he ends up stepping down and John Richie Tello Tello,

0:29:54.200 --> 0:29:57.640
<v Speaker 1>I guess it should say Richie Tello becomes the new CEO,

0:29:58.560 --> 0:30:01.800
<v Speaker 1>and he says the company's going to undergo a reorganization

0:30:01.840 --> 0:30:04.920
<v Speaker 1>to address the problems they've had where they've been acquiring

0:30:05.040 --> 0:30:08.000
<v Speaker 1>and trying to assimilate and then shutting down all these

0:30:08.040 --> 0:30:12.360
<v Speaker 1>different companies that they've been going after over the years. So,

0:30:12.760 --> 0:30:14.960
<v Speaker 1>I mean, this is this is an issue that all

0:30:15.040 --> 0:30:17.800
<v Speaker 1>big companies have. If you acquire a company, there's always

0:30:17.800 --> 0:30:22.880
<v Speaker 1>a culture shock era that follow it because unless the

0:30:22.920 --> 0:30:26.800
<v Speaker 1>two companies are practically ideally well aligned, yeah, that's there's

0:30:26.840 --> 0:30:29.640
<v Speaker 1>going to be culture shock so sometimes a company does

0:30:29.680 --> 0:30:33.959
<v Speaker 1>this so quickly that they the there's never that period

0:30:34.000 --> 0:30:36.160
<v Speaker 1>that you need to adjust and have things work out.

0:30:36.200 --> 0:30:39.479
<v Speaker 1>So he was saying, let's take the time to really

0:30:39.520 --> 0:30:42.080
<v Speaker 1>look at how our company is structured and make sure

0:30:42.120 --> 0:30:44.360
<v Speaker 1>that it makes sense. That was his That was his

0:30:44.440 --> 0:30:48.840
<v Speaker 1>statement from the the get go when he started right.

0:30:49.440 --> 0:30:52.320
<v Speaker 1>Also unrelated to that, but in addition to the other

0:30:52.360 --> 0:30:54.400
<v Speaker 1>games that they published that year, that was the year

0:30:54.440 --> 0:31:00.000
<v Speaker 1>that they published harm Nix's Rock Band along with MTV Huge, huge,

0:31:00.040 --> 0:31:03.320
<v Speaker 1>huge title. I mean, you know, Guitar Hero had been

0:31:03.480 --> 0:31:07.360
<v Speaker 1>in the years before already kind of uh had revolutionized

0:31:07.840 --> 0:31:11.200
<v Speaker 1>the idea of rhythm games on consoles, and Rock Band

0:31:11.720 --> 0:31:14.200
<v Speaker 1>ended up taking that and dialing it up to eleven.

0:31:14.240 --> 0:31:17.280
<v Speaker 1>As spinel Tap would love to say, and uh, I mean,

0:31:18.000 --> 0:31:21.680
<v Speaker 1>I've had a blast playing Rock Band. Even though I adore,

0:31:21.760 --> 0:31:24.880
<v Speaker 1>I adore the series. It's terrific. My musical talent is

0:31:24.880 --> 0:31:29.000
<v Speaker 1>is pretty negligible, but I still, you know, any game

0:31:29.040 --> 0:31:30.920
<v Speaker 1>that makes you feel like a rock star is pretty

0:31:31.000 --> 0:31:33.080
<v Speaker 1>pretty cool. It is it is, And also karaoke in

0:31:33.120 --> 0:31:36.080
<v Speaker 1>your own home is pretty cool. And also a little

0:31:36.240 --> 0:31:39.680
<v Speaker 1>cheat boxes that allow you to hook up real electronic

0:31:39.760 --> 0:31:43.520
<v Speaker 1>drum sets to the game and actually rock out. It's

0:31:43.760 --> 0:31:47.120
<v Speaker 1>pretty neat, pretty neat. Yeah. So we then move on

0:31:47.720 --> 0:31:52.120
<v Speaker 1>into two thousand eight where e A has a an

0:31:52.160 --> 0:31:57.760
<v Speaker 1>attempt to acquire another big name, Take two Interactive, which

0:31:58.200 --> 0:32:01.760
<v Speaker 1>you know gamers will wreck unize that it's it's pretty

0:32:01.760 --> 0:32:06.360
<v Speaker 1>famous studio. So e A made a move to acquire

0:32:06.440 --> 0:32:10.400
<v Speaker 1>take to Take two turned down the initial offer that

0:32:10.520 --> 0:32:15.160
<v Speaker 1>e A made, and then uh, the negotiations kind of

0:32:15.200 --> 0:32:17.719
<v Speaker 1>got a little quiet, but everyone kept an eye on

0:32:17.760 --> 0:32:20.120
<v Speaker 1>this because they were really wondering if e A was

0:32:20.160 --> 0:32:23.240
<v Speaker 1>in fact going to acquire yet another company, and some

0:32:23.280 --> 0:32:25.280
<v Speaker 1>people were really worried about what the fate of Take

0:32:25.320 --> 0:32:27.440
<v Speaker 1>two would be. Yeah. I think that part of the

0:32:27.480 --> 0:32:29.560
<v Speaker 1>reason that it fell through was also that the the

0:32:29.600 --> 0:32:32.920
<v Speaker 1>economic crisis that year, yeah hit them really hard. Yeah,

0:32:32.960 --> 0:32:38.680
<v Speaker 1>So e A's attempt to acquire Take two fails, and

0:32:39.480 --> 0:32:44.160
<v Speaker 1>that year the entire world entered into an economic crisis

0:32:44.200 --> 0:32:47.640
<v Speaker 1>and it affected lots of industries, you know, real estate

0:32:47.720 --> 0:32:50.720
<v Speaker 1>being the big famous one in the United States, banking

0:32:50.760 --> 0:32:54.160
<v Speaker 1>as well, but it also hit companies like e A

0:32:54.920 --> 0:32:58.000
<v Speaker 1>and UH. E A end up announcing that was going

0:32:58.080 --> 0:33:01.160
<v Speaker 1>to cut more than a thousand positions across all of

0:33:01.160 --> 0:33:03.880
<v Speaker 1>its divisions, which ended up being around ten to eleven

0:33:04.360 --> 0:33:07.720
<v Speaker 1>of its workforce, and that the company lost over six

0:33:07.880 --> 0:33:11.320
<v Speaker 1>hundred million dollars in the last quarter of two thousand

0:33:11.360 --> 0:33:15.040
<v Speaker 1>eight due to accommodation of the economic crisis and just

0:33:15.120 --> 0:33:17.920
<v Speaker 1>the fact that it's game releases had not performed very

0:33:17.960 --> 0:33:22.040
<v Speaker 1>well in the market at all um and there their

0:33:22.120 --> 0:33:26.800
<v Speaker 1>stock took a big tumble. So in August fifteen, of

0:33:26.800 --> 0:33:30.000
<v Speaker 1>of two thousand eight, their stock was valued at forty

0:33:30.000 --> 0:33:33.360
<v Speaker 1>eight dollars and twenty four cents per share. By December

0:33:33.440 --> 0:33:36.280
<v Speaker 1>twenty six, of two thousand eight, it had fallen to

0:33:36.520 --> 0:33:40.239
<v Speaker 1>twenty five dollars and thirty two cents per share. So, uh,

0:33:40.360 --> 0:33:45.800
<v Speaker 1>not not quite losing half its value, just under at drop,

0:33:45.880 --> 0:33:49.600
<v Speaker 1>but it's a whole bunch. Yeah, that's that's terrible, and

0:33:49.640 --> 0:33:53.320
<v Speaker 1>it really what it signaled was that investors had lost

0:33:53.400 --> 0:33:56.000
<v Speaker 1>a lot of confidence in the company. Now, keep in mind,

0:33:56.040 --> 0:33:59.000
<v Speaker 1>the value of your company is based upon how many

0:33:59.080 --> 0:34:01.840
<v Speaker 1>stocks are out there. If you're a publicly traded company,

0:34:01.880 --> 0:34:03.720
<v Speaker 1>the value of your company in part at least is

0:34:03.760 --> 0:34:06.560
<v Speaker 1>determined by how many stocks you have, and how how

0:34:06.560 --> 0:34:08.759
<v Speaker 1>many stocks are out there in the market and what

0:34:08.960 --> 0:34:12.719
<v Speaker 1>they're the actual value of each stock is. So you

0:34:12.800 --> 0:34:14.960
<v Speaker 1>kind of multiply those two numbers together and you get

0:34:15.000 --> 0:34:17.759
<v Speaker 1>a rough estimate of what the value of the company is. Well,

0:34:17.800 --> 0:34:20.520
<v Speaker 1>when you lose your stock price, that means that your

0:34:20.560 --> 0:34:25.160
<v Speaker 1>company is losing its value more or less oversimplifying, but

0:34:25.200 --> 0:34:28.520
<v Speaker 1>that more or less is what it means. Well, two

0:34:28.800 --> 0:34:31.880
<v Speaker 1>eight wasn't all bad. They did come out with a

0:34:31.960 --> 0:34:34.200
<v Speaker 1>game that ended up getting a lot of critical acclaim

0:34:34.239 --> 0:34:38.040
<v Speaker 1>and a lot of fans, which was Dead Space. I

0:34:38.080 --> 0:34:40.520
<v Speaker 1>was never a big Dead Space player, but I know

0:34:40.600 --> 0:34:44.320
<v Speaker 1>some people who can recite everything about that game, including

0:34:44.360 --> 0:34:46.399
<v Speaker 1>all the little hidden stuff that you had to find

0:34:46.440 --> 0:34:50.319
<v Speaker 1>to get the backstory. Also in the negative column that

0:34:50.360 --> 0:34:51.759
<v Speaker 1>was two thousand eight was a year that they were

0:34:51.800 --> 0:34:55.280
<v Speaker 1>hit with a class action lawsuit over the undisclosed edition

0:34:55.480 --> 0:34:59.000
<v Speaker 1>of a secure ROM DRM software along with games like

0:34:59.040 --> 0:35:02.960
<v Speaker 1>Spore for the Piece, E and M. And the lawsuit

0:35:03.040 --> 0:35:05.640
<v Speaker 1>was about the fact that they had included this this

0:35:05.640 --> 0:35:09.880
<v Speaker 1>this UH digital rights management software without telling anyone about it,

0:35:09.920 --> 0:35:12.160
<v Speaker 1>that it was separate from the game software, and that

0:35:12.440 --> 0:35:15.360
<v Speaker 1>it was basically impossible to uninstall even after you had

0:35:15.400 --> 0:35:18.040
<v Speaker 1>uninstalled the video game. Ye so e A was falling

0:35:18.120 --> 0:35:21.759
<v Speaker 1>under the same trap that Sony did, where, in an

0:35:21.760 --> 0:35:25.759
<v Speaker 1>effort to try and keep its intellectual property safe, it

0:35:25.800 --> 0:35:29.799
<v Speaker 1>had kind of over not kind of it overstepped. Yeah. Yeah,

0:35:29.880 --> 0:35:32.319
<v Speaker 1>you know. The point was to prevent people from from

0:35:32.320 --> 0:35:34.520
<v Speaker 1>installing it more than I think it was eight times,

0:35:35.239 --> 0:35:38.520
<v Speaker 1>three times, six times. It all depends number of times, right, right, Well,

0:35:38.520 --> 0:35:40.120
<v Speaker 1>it's one of those things where you know, someone who

0:35:40.200 --> 0:35:42.879
<v Speaker 1>buys the game, their argument is I should be able

0:35:42.920 --> 0:35:45.240
<v Speaker 1>to install this as many times as I want, because

0:35:45.760 --> 0:35:47.960
<v Speaker 1>you know, if I buy a new computer, I want

0:35:47.960 --> 0:35:51.360
<v Speaker 1>to be able to transfer the stuff I own onto

0:35:51.360 --> 0:35:54.080
<v Speaker 1>that computer. It's not that I'm you know, installing it

0:35:54.120 --> 0:35:56.440
<v Speaker 1>on all my friends machines. I just want to be

0:35:56.520 --> 0:35:59.400
<v Speaker 1>able to play my game. And the other argument against

0:35:59.440 --> 0:36:01.440
<v Speaker 1>that is that we don't want you to install this

0:36:01.520 --> 0:36:05.120
<v Speaker 1>somehow your friends machines. Right uh. In In other DRM

0:36:05.160 --> 0:36:07.279
<v Speaker 1>news that year, that was the year that UM the

0:36:07.360 --> 0:36:10.879
<v Speaker 1>e A announced plans to require PC owners of things

0:36:10.880 --> 0:36:14.080
<v Speaker 1>like Mass Effect and Sport to authenticate their copies every

0:36:14.160 --> 0:36:17.840
<v Speaker 1>ten days, even if they were playing the game offline. Yeah.

0:36:18.120 --> 0:36:22.360
<v Speaker 1>Um and this this is this becomes a common thread

0:36:22.600 --> 0:36:25.239
<v Speaker 1>in e A as well. This idea of having either

0:36:25.400 --> 0:36:29.360
<v Speaker 1>a persistent Internet connection or at least using the Internet

0:36:29.440 --> 0:36:31.880
<v Speaker 1>every now and then to again verify that you have

0:36:32.800 --> 0:36:34.879
<v Speaker 1>a legitimate copy of the game. So not only would

0:36:34.920 --> 0:36:37.759
<v Speaker 1>you have to retain whatever the disc was, you would

0:36:37.800 --> 0:36:39.239
<v Speaker 1>have to have that in your machine. You would have

0:36:39.280 --> 0:36:41.120
<v Speaker 1>to then make a connection to the internet, and then

0:36:41.160 --> 0:36:43.520
<v Speaker 1>the Internet would make sure that that, in fact was

0:36:43.600 --> 0:36:46.719
<v Speaker 1>your registered copy so that you could play the game

0:36:46.760 --> 0:36:49.800
<v Speaker 1>you wanted. Even if you were able to just move

0:36:50.000 --> 0:36:53.360
<v Speaker 1>everything on the game into your computer and it's a

0:36:53.360 --> 0:36:55.840
<v Speaker 1>single player game, you still had to do that. And

0:36:56.320 --> 0:36:58.719
<v Speaker 1>a lot of players objected. Yeah, yeah, especially you know

0:36:58.760 --> 0:37:01.400
<v Speaker 1>two thousand eight. You know, most people had had pretty

0:37:01.400 --> 0:37:04.560
<v Speaker 1>good Internet connections at that point. It was getting better,

0:37:04.600 --> 0:37:06.960
<v Speaker 1>but not everyone wanted to be connected to the Internet

0:37:06.960 --> 0:37:10.359
<v Speaker 1>all the time. And you know, the people who bought

0:37:10.400 --> 0:37:13.400
<v Speaker 1>the game pointed out that this was really a hassle

0:37:13.520 --> 0:37:16.279
<v Speaker 1>for the legitimate game player, and people who were pirate

0:37:16.360 --> 0:37:19.600
<v Speaker 1>into the game were breaking this encryption. They were using

0:37:19.760 --> 0:37:24.240
<v Speaker 1>keys that would allow them to right so that they

0:37:24.239 --> 0:37:26.879
<v Speaker 1>wouldn't they didn't have to offer a kid. They were

0:37:27.160 --> 0:37:31.320
<v Speaker 1>playing pirated copies that they got for free that didn't

0:37:31.360 --> 0:37:34.160
<v Speaker 1>have this drm in it. And so the players, the

0:37:34.280 --> 0:37:37.480
<v Speaker 1>legitimate players who had bought the games say it said, look,

0:37:37.800 --> 0:37:40.960
<v Speaker 1>you're only punishing us. You're not you're not stopping piracy,

0:37:41.000 --> 0:37:43.319
<v Speaker 1>and you're making the game a miserable experience for the

0:37:43.320 --> 0:37:46.160
<v Speaker 1>people who actually paid to play it. Yeah. This this

0:37:46.239 --> 0:37:50.320
<v Speaker 1>never did go into effect, this particular bit of of

0:37:50.400 --> 0:37:53.080
<v Speaker 1>d r M on the side. They relented pretty quickly

0:37:53.120 --> 0:37:56.279
<v Speaker 1>after community feedback, which was highly highly negative as you

0:37:56.280 --> 0:37:59.160
<v Speaker 1>can imagine. They however, did not learn their lesson from it,

0:37:59.200 --> 0:38:01.840
<v Speaker 1>because they would they would incorporate it again in the future.

0:38:02.680 --> 0:38:06.720
<v Speaker 1>H two thousand nine, e A acquires a play Fish,

0:38:06.760 --> 0:38:09.920
<v Speaker 1>which was a developer of casual games. They had seen

0:38:10.000 --> 0:38:12.400
<v Speaker 1>how Louis was doing and they thought let's get in

0:38:12.440 --> 0:38:15.160
<v Speaker 1>on that as well. Um. They also went ahead and

0:38:15.200 --> 0:38:18.520
<v Speaker 1>cut another fifteen hundred employees, which was about sevent of

0:38:18.560 --> 0:38:22.480
<v Speaker 1>its workforce, and they shut down Pandemic Studios that year.

0:38:22.560 --> 0:38:25.600
<v Speaker 1>So yet another example of them acquiring and then shutting

0:38:25.600 --> 0:38:29.320
<v Speaker 1>down a company. Uh and next, I don't have anything

0:38:29.360 --> 0:38:33.680
<v Speaker 1>for me neither, but inn In the summer they acquired

0:38:33.719 --> 0:38:39.399
<v Speaker 1>PopCap Oh wow, yeah, another casual games developer, so lots

0:38:39.400 --> 0:38:42.480
<v Speaker 1>of lots of mobile content all that. Yeah, who own

0:38:42.520 --> 0:38:45.240
<v Speaker 1>like The Jeweled and stuff like that? Right, They also

0:38:45.400 --> 0:38:48.279
<v Speaker 1>released Star Wars the Old Republic, which was a Star

0:38:48.280 --> 0:38:51.399
<v Speaker 1>Wars based m m O RPG. Uh. Now, we had

0:38:51.440 --> 0:38:54.000
<v Speaker 1>one person asked us if we could talk more about

0:38:54.120 --> 0:38:57.080
<v Speaker 1>Star Wars the Old Republic and why did it move

0:38:57.239 --> 0:39:00.239
<v Speaker 1>from a subscription based service too free to play with

0:39:00.280 --> 0:39:04.480
<v Speaker 1>micro transactions, and and how you know, what's the story

0:39:04.520 --> 0:39:07.319
<v Speaker 1>of its failure if you want to look at it

0:39:07.360 --> 0:39:10.520
<v Speaker 1>in that way? All right? As so, I actually played

0:39:10.640 --> 0:39:13.160
<v Speaker 1>Star Wars the Old Republic. I I subscribed. I was

0:39:13.200 --> 0:39:15.279
<v Speaker 1>one of the subscribers. I was one of the people

0:39:15.320 --> 0:39:17.880
<v Speaker 1>who got who rolled his eyes when I heard that

0:39:18.000 --> 0:39:20.200
<v Speaker 1>was going to free to play because I had actually

0:39:20.400 --> 0:39:22.919
<v Speaker 1>bought a I think it was like a twelve month

0:39:22.960 --> 0:39:28.760
<v Speaker 1>subscription in advance. But so Star Wars the Old Republic

0:39:28.800 --> 0:39:32.279
<v Speaker 1>takes place thousands of years before the events of the

0:39:32.320 --> 0:39:36.200
<v Speaker 1>Star Wars movie series. Um. But it puts you in

0:39:36.480 --> 0:39:41.959
<v Speaker 1>either a a Sith role or a Republic role, and

0:39:42.480 --> 0:39:44.719
<v Speaker 1>you have different storylines that we play out based upon

0:39:44.760 --> 0:39:47.640
<v Speaker 1>the type of character you were playing. I think part

0:39:47.680 --> 0:39:49.600
<v Speaker 1>of the problem was that it, even though it was

0:39:49.640 --> 0:39:53.360
<v Speaker 1>an m m O RPG, more frequently than not it

0:39:53.480 --> 0:39:56.080
<v Speaker 1>felt to me like a single player game. It felt

0:39:56.120 --> 0:39:59.040
<v Speaker 1>like another sequel to Cotur, which isn't a bad thing.

0:39:59.200 --> 0:40:01.560
<v Speaker 1>The Coach board game were great. I very much enjoyed them,

0:40:02.040 --> 0:40:05.920
<v Speaker 1>even though the second Cotur game obviously had an entire

0:40:05.960 --> 0:40:09.040
<v Speaker 1>section that was left unfinished because you could see it

0:40:09.080 --> 0:40:11.200
<v Speaker 1>on your map, but you couldn't get to it in

0:40:11.360 --> 0:40:15.160
<v Speaker 1>uh in the actual game. Anyway, the Old Republic felt

0:40:15.160 --> 0:40:17.960
<v Speaker 1>like another sequel to that. It didn't feel as much

0:40:18.120 --> 0:40:20.520
<v Speaker 1>like an M M O RPG. You didn't have as

0:40:20.560 --> 0:40:23.680
<v Speaker 1>many people partying up together and kind of interactions that

0:40:23.680 --> 0:40:27.920
<v Speaker 1>you would normally expect from and not after the initial launched,

0:40:27.920 --> 0:40:30.160
<v Speaker 1>Like there was a lot of interest in it very

0:40:30.160 --> 0:40:32.480
<v Speaker 1>early on, but that kind of dropped off quickly. And

0:40:32.480 --> 0:40:34.640
<v Speaker 1>part of the problem was that people were completing the

0:40:34.800 --> 0:40:38.600
<v Speaker 1>storylines for the characters very very quickly, and once you

0:40:38.640 --> 0:40:41.600
<v Speaker 1>did that, you didn't really have any incentive to keep playing.

0:40:42.160 --> 0:40:43.719
<v Speaker 1>So it was just like if you had played a

0:40:43.760 --> 0:40:45.520
<v Speaker 1>single player game all the way through and then you're thinking,

0:40:45.560 --> 0:40:47.080
<v Speaker 1>all right, well, that was fun, but now I want

0:40:47.160 --> 0:40:50.120
<v Speaker 1>to sell this game and get some money back, and

0:40:50.160 --> 0:40:52.200
<v Speaker 1>then I'm going to buy another new game. That's kind

0:40:52.200 --> 0:40:56.440
<v Speaker 1>of what people were thinking. Well, subscribers started to drop

0:40:56.480 --> 0:40:59.520
<v Speaker 1>off from this game, and e A's response was that, well,

0:40:59.760 --> 0:41:02.280
<v Speaker 1>you know, we could either pull the plug on it entirely,

0:41:03.040 --> 0:41:06.279
<v Speaker 1>or we could try and switch our strategy and get

0:41:06.280 --> 0:41:10.080
<v Speaker 1>more people interested in this game. But obviously the subscription

0:41:10.120 --> 0:41:12.239
<v Speaker 1>models not really working. So what if we dropped the

0:41:12.280 --> 0:41:14.680
<v Speaker 1>subscription and go to free to play and instead of

0:41:14.719 --> 0:41:19.200
<v Speaker 1>making money through people subscribing, we make money by selling

0:41:19.280 --> 0:41:23.040
<v Speaker 1>items in the game for real money, small amounts of

0:41:23.080 --> 0:41:28.120
<v Speaker 1>money micro transactions, but um, and you could still play

0:41:28.120 --> 0:41:31.680
<v Speaker 1>it for free without buying anything, but you wouldn't have

0:41:31.719 --> 0:41:33.840
<v Speaker 1>access to the entire game. There'll be sections of the

0:41:33.840 --> 0:41:35.759
<v Speaker 1>game you could not get to because you would have

0:41:35.880 --> 0:41:38.080
<v Speaker 1>to purchase them in order to have access. And all

0:41:38.080 --> 0:41:42.400
<v Speaker 1>of the micro transaction items were the super powerful cool

0:41:42.440 --> 0:41:45.000
<v Speaker 1>things with rainbows and unicorns or whatever the you know

0:41:45.160 --> 0:41:49.400
<v Speaker 1>Star Wars equivalent of rainbows and called lightsabers. So I

0:41:49.440 --> 0:41:52.839
<v Speaker 1>realize you're not familiar with the venerable franchise known as

0:41:52.840 --> 0:41:55.800
<v Speaker 1>Star Wars. Yeah no, never never seen any of those

0:41:55.880 --> 0:42:00.520
<v Speaker 1>scruffy looking at um. So yeah, they that was the

0:42:00.560 --> 0:42:03.040
<v Speaker 1>whole response there was to switch over to free to

0:42:03.080 --> 0:42:06.719
<v Speaker 1>play and do micro transactions. Now, this is another thing

0:42:06.800 --> 0:42:09.239
<v Speaker 1>that e a has received a lot of criticism for

0:42:09.440 --> 0:42:12.600
<v Speaker 1>is the whole micro transaction approach. I can't say the

0:42:12.600 --> 0:42:18.799
<v Speaker 1>word criticism either, obviously, but the micro transactions are that's

0:42:18.800 --> 0:42:20.920
<v Speaker 1>another way to try and generate revenue, and if you

0:42:20.960 --> 0:42:23.520
<v Speaker 1>make your game free to play, it may be the

0:42:23.560 --> 0:42:27.000
<v Speaker 1>only way unless you incorporate lots of advertising, and either

0:42:27.080 --> 0:42:29.919
<v Speaker 1>way most players kind of react in a negative way. Yeah,

0:42:30.000 --> 0:42:32.160
<v Speaker 1>that has also been something that e A has gotten

0:42:32.200 --> 0:42:34.360
<v Speaker 1>a lot of flak for, is the the inclusion of

0:42:34.840 --> 0:42:38.200
<v Speaker 1>kind of kind of annoying out there advertising in the

0:42:38.200 --> 0:42:42.080
<v Speaker 1>middle of their games. Right. Well, the disappointing performance of

0:42:42.120 --> 0:42:45.360
<v Speaker 1>Star Wars may have also contributed to another dip in

0:42:45.440 --> 0:42:49.920
<v Speaker 1>e AS stock prices in although, but before we move on,

0:42:50.040 --> 0:42:52.640
<v Speaker 1>just thank you Chaz our listener from Twitter for for

0:42:52.680 --> 0:42:55.560
<v Speaker 1>writing in about that. Yes, thank you very much, and

0:42:55.800 --> 0:42:57.799
<v Speaker 1>we have a few more questions we will address at

0:42:57.840 --> 0:43:00.360
<v Speaker 1>the end of this episode as well. Also in twenty eleven,

0:43:00.400 --> 0:43:03.960
<v Speaker 1>something else big happened to e A. E A had

0:43:04.000 --> 0:43:08.080
<v Speaker 1>the honor is the wrong word for it, had had

0:43:08.160 --> 0:43:14.880
<v Speaker 1>the unfortunate um role as Lull's SEC final target. LULLS

0:43:14.920 --> 0:43:18.400
<v Speaker 1>SEC being laugh out Loud Security was kind of a

0:43:18.400 --> 0:43:25.040
<v Speaker 1>an offshoot of Anonymous. It was not necessarily related directly

0:43:25.120 --> 0:43:28.719
<v Speaker 1>to anonymous, but it was a group of of hackers

0:43:28.760 --> 0:43:31.160
<v Speaker 1>who decided that they were going to cause as much

0:43:31.200 --> 0:43:35.040
<v Speaker 1>trouble as possible really for the main reason they wanted

0:43:35.080 --> 0:43:37.839
<v Speaker 1>to do it was to show that they could. And Uh, boy,

0:43:37.840 --> 0:43:40.160
<v Speaker 1>I bet they're regretting that decision right now because as

0:43:40.280 --> 0:43:43.239
<v Speaker 1>the recording of this podcast, uh, four of them have

0:43:43.360 --> 0:43:47.080
<v Speaker 1>been sentenced to between a year and two years in

0:43:47.320 --> 0:43:53.279
<v Speaker 1>various uh jails or juvenile facilities. Well, so, yikes, I

0:43:53.280 --> 0:43:57.200
<v Speaker 1>guess they weren't quite as anonymous as they thought. Uh. Anyway,

0:43:57.320 --> 0:44:01.080
<v Speaker 1>they hit e A as their final target for disbanding,

0:44:01.719 --> 0:44:05.440
<v Speaker 1>and uh they ended up releasing the log in information

0:44:05.560 --> 0:44:09.520
<v Speaker 1>of thousands of people who were playing Battlefield Heroes. So

0:44:10.040 --> 0:44:12.120
<v Speaker 1>uh that was a big black I. E A had

0:44:12.120 --> 0:44:14.560
<v Speaker 1>to reset all that and send emails out to everybody saying,

0:44:14.600 --> 0:44:17.640
<v Speaker 1>you know, it was compromised and you need to change

0:44:17.680 --> 0:44:20.919
<v Speaker 1>passwords and all that kind of stuff. Uh. In twelve

0:44:21.520 --> 0:44:27.440
<v Speaker 1>e he wins another awful uh distinguishing feature here they

0:44:27.480 --> 0:44:30.280
<v Speaker 1>were called they they they were named the worst company

0:44:30.320 --> 0:44:32.960
<v Speaker 1>in America by the Consumerist And this is a this

0:44:33.040 --> 0:44:35.480
<v Speaker 1>is a thing that that the consumers does every year.

0:44:35.480 --> 0:44:37.319
<v Speaker 1>They've been doing it for a while. They gave a

0:44:37.360 --> 0:44:42.080
<v Speaker 1>Golden Poo award. Yes they do. It's a very distinguished

0:44:42.680 --> 0:44:44.560
<v Speaker 1>Uh yeah. The way it works is that they set

0:44:44.560 --> 0:44:48.240
<v Speaker 1>it up like a tournament bracket and they let people

0:44:48.360 --> 0:44:51.680
<v Speaker 1>vote on which company they think should progress in the bracket.

0:44:52.160 --> 0:44:55.560
<v Speaker 1>And that year e A took home the Golden Pooh.

0:44:55.760 --> 0:44:59.160
<v Speaker 1>It's final opponent was the Bank of America. Now keep

0:44:59.200 --> 0:45:02.120
<v Speaker 1>in mind this is all from reader votes, it's not.

0:45:02.239 --> 0:45:04.400
<v Speaker 1>I mean, I think I think the consumers is the

0:45:04.440 --> 0:45:07.120
<v Speaker 1>one that ultimately decides which ones are in the brackets,

0:45:07.120 --> 0:45:10.480
<v Speaker 1>but the readers are the ones who determine which companies progress, right,

0:45:10.520 --> 0:45:12.520
<v Speaker 1>And this is the Internet, and there are some gamers

0:45:12.560 --> 0:45:14.600
<v Speaker 1>on the internet, so so I'm sure that that is

0:45:14.760 --> 0:45:17.279
<v Speaker 1>part of why e A made it that far. But

0:45:17.280 --> 0:45:21.000
<v Speaker 1>but also, I mean was when Occupy was happening, so

0:45:21.000 --> 0:45:23.440
<v Speaker 1>so think I mean there were thousands of people on

0:45:23.520 --> 0:45:28.640
<v Speaker 1>the streets protesting the actions of corporations like Bank of America,

0:45:28.960 --> 0:45:32.840
<v Speaker 1>and e A still still beat them out. Yeah, by

0:45:33.040 --> 0:45:36.279
<v Speaker 1>I think it was like close to to you know,

0:45:36.680 --> 0:45:39.480
<v Speaker 1>twenty six or something like that. It's really like that,

0:45:39.640 --> 0:45:42.719
<v Speaker 1>So it was it wasn't even close. It's a runaway

0:45:42.760 --> 0:45:45.880
<v Speaker 1>but again, you know the platforms the Internet. Gamers like

0:45:45.960 --> 0:45:48.080
<v Speaker 1>the Internet, so you know, keep that all in mind.

0:45:48.280 --> 0:45:50.600
<v Speaker 1>It's kind of it was kind of skewed to e A,

0:45:50.600 --> 0:45:54.040
<v Speaker 1>is what we're saying. Probably, So why did it win

0:45:54.160 --> 0:45:58.280
<v Speaker 1>Worst Company? Well, some of the the suggestions were because

0:45:58.400 --> 0:46:00.320
<v Speaker 1>it had stripped the video game in the story of

0:46:00.400 --> 0:46:04.200
<v Speaker 1>talent through all those acquisitions and then shutting down competitions.

0:46:04.600 --> 0:46:08.080
<v Speaker 1>Are shutting down competing studios, I should say. So they

0:46:08.239 --> 0:46:10.560
<v Speaker 1>not only bought up competing studios but then shut them down,

0:46:10.600 --> 0:46:14.120
<v Speaker 1>which then meant that that talent and those games would

0:46:14.320 --> 0:46:18.240
<v Speaker 1>often become inaccessible. There would never be another one because

0:46:18.360 --> 0:46:21.040
<v Speaker 1>e A would own the intellectual property, but not have

0:46:21.120 --> 0:46:24.400
<v Speaker 1>anyone to actually develop the games anymore. At least the

0:46:24.440 --> 0:46:26.359
<v Speaker 1>people who had developed it were gone, so it would

0:46:26.360 --> 0:46:29.399
<v Speaker 1>be a completely different experience. Uh. Then there was also

0:46:29.560 --> 0:46:32.360
<v Speaker 1>citing of the use of micro transactions, just like I said,

0:46:33.360 --> 0:46:36.480
<v Speaker 1>especially for any games where you already had to buy

0:46:36.520 --> 0:46:38.919
<v Speaker 1>a game and then on top of it, have micro

0:46:39.000 --> 0:46:41.760
<v Speaker 1>transactions within the games that were not free to begin with. Yeah,

0:46:41.800 --> 0:46:44.120
<v Speaker 1>so the idea of buying like a sixty dollar game

0:46:44.160 --> 0:46:46.359
<v Speaker 1>and then having to spend more money within the game

0:46:46.400 --> 0:46:48.759
<v Speaker 1>in order for it to be a satisfying experience. That

0:46:48.800 --> 0:46:50.880
<v Speaker 1>did not sit well with a lot of people who

0:46:51.000 --> 0:46:53.759
<v Speaker 1>voted in this Also, the one of the things they

0:46:53.840 --> 0:46:57.040
<v Speaker 1>cited were the exclusivity deals that e A had made

0:46:57.040 --> 0:47:01.160
<v Speaker 1>with organizations like the NFL. Now that big deal. Now

0:47:01.160 --> 0:47:03.160
<v Speaker 1>for e A, it made perfect sense. That meant that

0:47:03.239 --> 0:47:06.359
<v Speaker 1>they had tied up the NFL license that they were

0:47:06.360 --> 0:47:09.600
<v Speaker 1>the only company that could put out an official NFL

0:47:09.719 --> 0:47:12.520
<v Speaker 1>affiliated football game. And the same thing is true for

0:47:12.600 --> 0:47:16.160
<v Speaker 1>other sports as well. They made exclusivity agreements with other

0:47:16.239 --> 0:47:21.239
<v Speaker 1>sports agencies, but NFL is an easy example. So e

0:47:21.360 --> 0:47:26.200
<v Speaker 1>A then shuts down competition because no other game company

0:47:26.280 --> 0:47:29.919
<v Speaker 1>can make an official NFL licensed game. They can't use

0:47:30.040 --> 0:47:33.520
<v Speaker 1>the actual team player names or anything. And although you know,

0:47:33.880 --> 0:47:37.080
<v Speaker 1>another football strategy game could certainly be enjoyable, when you

0:47:37.080 --> 0:47:39.560
<v Speaker 1>don't have that brand recognition behind it, it becomes a

0:47:39.600 --> 0:47:41.600
<v Speaker 1>lot harder to market, right. I mean, why if if

0:47:41.640 --> 0:47:44.320
<v Speaker 1>you're a fan of football and you want to play

0:47:44.480 --> 0:47:48.000
<v Speaker 1>as your favorite football team with with the actual players

0:47:48.000 --> 0:47:50.760
<v Speaker 1>who are on that team as your as your players,

0:47:51.120 --> 0:47:53.319
<v Speaker 1>then you had to go with the A because no

0:47:53.360 --> 0:47:55.879
<v Speaker 1>one else had the licensing agreement that would allow them

0:47:55.920 --> 0:47:58.759
<v Speaker 1>to do that and so that you know, people said, like,

0:47:58.800 --> 0:48:01.960
<v Speaker 1>you're essentially saying we're the only game in town. Yeah,

0:48:02.000 --> 0:48:06.000
<v Speaker 1>you're you're further further shutting down the opportunities of other studios. Right,

0:48:06.040 --> 0:48:08.719
<v Speaker 1>So that was another reason why they got a lot

0:48:08.719 --> 0:48:14.320
<v Speaker 1>of votes. Uh So the tournaments came out pretty badly

0:48:14.520 --> 0:48:17.279
<v Speaker 1>for e A. Uh, it showed that that had a

0:48:17.320 --> 0:48:20.560
<v Speaker 1>real problem with public perception of the company. Um and

0:48:20.640 --> 0:48:24.839
<v Speaker 1>e A tried to kind of uh respond to that,

0:48:24.960 --> 0:48:27.120
<v Speaker 1>and and a lot of people thought that their response

0:48:27.200 --> 0:48:30.640
<v Speaker 1>was lackluster. This would happen again, but we'll get to it. Yeah,

0:48:30.719 --> 0:48:33.439
<v Speaker 1>I don't want to spoil it, but yeah. That year

0:48:33.560 --> 0:48:36.759
<v Speaker 1>also was when e A released Mass Effect three, which

0:48:36.800 --> 0:48:39.400
<v Speaker 1>may also have affected its standings as Worst Company in

0:48:39.440 --> 0:48:41.920
<v Speaker 1>America because, as I recall, there were a lot of

0:48:41.960 --> 0:48:44.320
<v Speaker 1>people who were not happy with the way that game ended.

0:48:44.560 --> 0:48:46.560
<v Speaker 1>Yeah didn't they didn't they wasn't that the one that

0:48:46.600 --> 0:48:49.840
<v Speaker 1>they released a different ending too that you could you

0:48:49.880 --> 0:48:52.799
<v Speaker 1>could download. There were, as I recall, there were there

0:48:52.840 --> 0:48:54.560
<v Speaker 1>may have been. I think there might have been, but

0:48:54.600 --> 0:48:56.799
<v Speaker 1>I know there were at least three different endings that

0:48:56.880 --> 0:48:59.799
<v Speaker 1>were already in the game. But some people argued that

0:48:59.840 --> 0:49:02.759
<v Speaker 1>the three different endings were not distinct enough that you know,

0:49:02.960 --> 0:49:05.520
<v Speaker 1>you would have small details that were different, but that

0:49:05.960 --> 0:49:08.080
<v Speaker 1>in the grand scheme it felt like what you had

0:49:08.160 --> 0:49:11.640
<v Speaker 1>done in the series of games. Yeah, it defeats the

0:49:11.760 --> 0:49:14.200
<v Speaker 1>entire purpose of the Mass Effect series exactly. It felt

0:49:14.239 --> 0:49:17.280
<v Speaker 1>like like, while while the whole game makes it feel

0:49:17.280 --> 0:49:20.680
<v Speaker 1>like you're going to have this huge impact, ultimately, if

0:49:20.760 --> 0:49:24.319
<v Speaker 1>the differences aren't that great, then it means that you know,

0:49:24.360 --> 0:49:26.399
<v Speaker 1>what you did didn't really matter in the grand scheme

0:49:26.400 --> 0:49:28.360
<v Speaker 1>of things, which from an existential point of view is

0:49:28.400 --> 0:49:32.319
<v Speaker 1>kind of interesting. But from a gamer player, uh, you know, experience,

0:49:32.480 --> 0:49:34.879
<v Speaker 1>maybe not so much fun. Right, It's not called nic

0:49:35.080 --> 0:49:38.160
<v Speaker 1>the game so therefore so so people said that they

0:49:38.200 --> 0:49:41.120
<v Speaker 1>felt that the game had what the end game in particular,

0:49:41.120 --> 0:49:43.160
<v Speaker 1>had been rushed, and that it just wasn't a fitting

0:49:43.440 --> 0:49:48.480
<v Speaker 1>capper to it. UH and Penny Arcades Ben Kuchera and

0:49:48.640 --> 0:49:52.400
<v Speaker 1>I apologize if I'm miss uh mispronouncing his name. He

0:49:52.520 --> 0:49:55.760
<v Speaker 1>criticized the company for concentrating on free to play games

0:49:55.760 --> 0:49:58.480
<v Speaker 1>and micro transactions, and he also said that the company

0:49:58.520 --> 0:50:01.200
<v Speaker 1>was failing to create compel in retail games. So you're

0:50:01.239 --> 0:50:04.040
<v Speaker 1>saying that the games that you are selling for sixty

0:50:04.080 --> 0:50:07.440
<v Speaker 1>dollars aren't really good good and the ones that are

0:50:07.440 --> 0:50:10.360
<v Speaker 1>free to play with micro transactions are irritating. Right. So

0:50:11.239 --> 0:50:14.320
<v Speaker 1>Penny Arcade, by the way, has nine hundred and twenty

0:50:14.320 --> 0:50:17.200
<v Speaker 1>two comics that are tagged e A in their system,

0:50:17.320 --> 0:50:19.879
<v Speaker 1>which as of the recording of this podcast, yes, as

0:50:19.880 --> 0:50:22.879
<v Speaker 1>a well, yeah, as of as of Tuesday, I think

0:50:22.880 --> 0:50:26.000
<v Speaker 1>actually Tuesday or Wednesday this week, so there there. There

0:50:26.080 --> 0:50:30.239
<v Speaker 1>might have been more UH since then, but it just

0:50:30.320 --> 0:50:32.960
<v Speaker 1>which just goes to show that the gaming community has

0:50:33.000 --> 0:50:34.880
<v Speaker 1>had a lot to say and a lot of crisis

0:50:35.000 --> 0:50:38.319
<v Speaker 1>criticism to lob against the company over the years. And

0:50:38.440 --> 0:50:43.360
<v Speaker 1>UH and John Richard tell O stepped down as CEO

0:50:43.680 --> 0:50:46.040
<v Speaker 1>and as a member of the board. UH. Here's a

0:50:46.080 --> 0:50:48.440
<v Speaker 1>direct quote from one of the blog posts that was

0:50:48.480 --> 0:50:50.960
<v Speaker 1>written that he wrote about this. He said, I am

0:50:51.000 --> 0:50:54.040
<v Speaker 1>writing with some tough news. I have resigned my position

0:50:54.040 --> 0:50:56.520
<v Speaker 1>as e A s CEO. I will be around for

0:50:56.560 --> 0:50:58.200
<v Speaker 1>a couple of weeks and I hope to have it

0:50:58.600 --> 0:51:01.040
<v Speaker 1>the chance to say goodbye to many of you. Larry

0:51:01.080 --> 0:51:03.719
<v Speaker 1>Probest will be stepping in as executive chairman to help

0:51:03.800 --> 0:51:08.400
<v Speaker 1>smooth the transition. UH. E A also continued to layoff

0:51:08.440 --> 0:51:12.240
<v Speaker 1>employees in part as a streamlining effort at this time,

0:51:12.960 --> 0:51:15.120
<v Speaker 1>and so Probest comes back in. You know, he had

0:51:15.120 --> 0:51:20.680
<v Speaker 1>stepped down and now he was interim CEO. Uh and

0:51:20.880 --> 0:51:23.920
<v Speaker 1>uh that's as of the recording of this podcast, that's

0:51:23.920 --> 0:51:27.080
<v Speaker 1>still the case. They hadn't found a permanent replacement yet. Yeah,

0:51:27.120 --> 0:51:29.080
<v Speaker 1>but they yeah, that was that was another ten percent

0:51:29.080 --> 0:51:32.160
<v Speaker 1>of global staff that was laid off as of May

0:51:32.280 --> 0:51:35.640
<v Speaker 1>of this year. So tough times over at e A.

0:51:36.080 --> 0:51:39.000
<v Speaker 1>They also said that they planned to open a Dice

0:51:39.280 --> 0:51:43.600
<v Speaker 1>l A office, uh, where they would be developing games,

0:51:43.640 --> 0:51:46.800
<v Speaker 1>including Star Wars games because they made a deal with Disney,

0:51:46.840 --> 0:51:50.720
<v Speaker 1>which of course acquired the rights to the Lucas Arts

0:51:50.880 --> 0:51:56.680
<v Speaker 1>stuff earlier. And they won the Worst Company in America

0:51:56.760 --> 0:51:59.360
<v Speaker 1>for the second year in a row. And most of

0:51:59.400 --> 0:52:01.879
<v Speaker 1>the reasons is the first time that any company has

0:52:01.920 --> 0:52:04.080
<v Speaker 1>ever done this, by the way, done a two for

0:52:04.680 --> 0:52:07.359
<v Speaker 1>and they they the reasons are pretty much the same

0:52:07.360 --> 0:52:11.080
<v Speaker 1>as twelve. But also there was another controversy that happened

0:52:11.719 --> 0:52:14.800
<v Speaker 1>between those two times that ended up costing the company

0:52:14.840 --> 0:52:17.680
<v Speaker 1>big time, which was the launch of sim City five,

0:52:17.800 --> 0:52:21.200
<v Speaker 1>one of the most anticipated games in a long time.

0:52:21.239 --> 0:52:23.480
<v Speaker 1>I mean, like there's certain titles that when you hear

0:52:23.480 --> 0:52:27.360
<v Speaker 1>about them coming out, people old school gamers get really excited.

0:52:27.640 --> 0:52:30.239
<v Speaker 1>Diablo three is a great example of a game that

0:52:30.320 --> 0:52:33.480
<v Speaker 1>got a lot of people talking months before it came out.

0:52:33.520 --> 0:52:36.279
<v Speaker 1>Sim City five is another one of those where people

0:52:36.320 --> 0:52:38.800
<v Speaker 1>who are fans of the sim City franchise were really

0:52:38.840 --> 0:52:43.319
<v Speaker 1>excited by this game. But the big issue was that

0:52:43.400 --> 0:52:45.640
<v Speaker 1>sim City five was a game that requires you to

0:52:45.640 --> 0:52:47.719
<v Speaker 1>have a persistent connection to the Internet in order to

0:52:47.760 --> 0:52:50.400
<v Speaker 1>play it. Even if you're just playing single payer, single

0:52:50.400 --> 0:52:52.920
<v Speaker 1>player offline, it's just you and your computer, but you

0:52:52.960 --> 0:52:55.719
<v Speaker 1>still have to have a persistent Internet connection. And they

0:52:55.760 --> 0:52:58.879
<v Speaker 1>had some server issues when the game launched, which meant

0:52:58.880 --> 0:53:01.160
<v Speaker 1>that people couldn't play the game they had just bought.

0:53:01.200 --> 0:53:04.080
<v Speaker 1>They had spent the money, the game was in their hands.

0:53:04.120 --> 0:53:06.520
<v Speaker 1>They wanted to play a single player game, and they

0:53:06.600 --> 0:53:10.120
<v Speaker 1>couldn't do it because the servers weren't working. Now, that

0:53:10.920 --> 0:53:13.520
<v Speaker 1>tells you that this is a huge problem that that's

0:53:13.520 --> 0:53:17.160
<v Speaker 1>another example of why the persistent Internet connection thing is

0:53:17.200 --> 0:53:21.040
<v Speaker 1>an argument that people say makes for bad gaming experience,

0:53:21.040 --> 0:53:23.560
<v Speaker 1>because when you have a technical issue on the the

0:53:23.600 --> 0:53:28.759
<v Speaker 1>game providers end uh, then it's adding a completely unnecessary

0:53:28.760 --> 0:53:30.759
<v Speaker 1>extra step that a lot of things can go wrong

0:53:30.800 --> 0:53:34.359
<v Speaker 1>with right, And if it's an online game, then that's

0:53:34.400 --> 0:53:36.560
<v Speaker 1>just the way that works, right. But but when it's

0:53:36.560 --> 0:53:39.040
<v Speaker 1>a single player game, then people have a real hard

0:53:39.120 --> 0:53:43.080
<v Speaker 1>time feeling. And uh, you know again, a lot of

0:53:43.120 --> 0:53:45.400
<v Speaker 1>people say that the whole reason for this was just

0:53:45.480 --> 0:53:48.800
<v Speaker 1>so that e A could have another kind of DRM

0:53:48.840 --> 0:53:52.600
<v Speaker 1>there that you know, that's not e A has denied that.

0:53:52.680 --> 0:53:54.920
<v Speaker 1>They said, that's not the reason, but that's the reason

0:53:55.000 --> 0:53:59.480
<v Speaker 1>everyone says, says is a lot of people suggest that's

0:53:59.520 --> 0:54:02.080
<v Speaker 1>the real Let me put it that way. Sure. They

0:54:02.120 --> 0:54:04.719
<v Speaker 1>also made headlines in February and March when um, the

0:54:04.800 --> 0:54:08.240
<v Speaker 1>CFO Blake Jorgensen announced that all future titles would involve

0:54:08.280 --> 0:54:11.919
<v Speaker 1>micro transactions. Uh he back pedaled really hard a week later.

0:54:12.200 --> 0:54:14.040
<v Speaker 1>Um yeah, let it. That did not get a great

0:54:14.080 --> 0:54:17.960
<v Speaker 1>reaction now and again that's probably what contributed to it

0:54:18.000 --> 0:54:21.239
<v Speaker 1>winning the Worst company in America again. Yeah. Despite all

0:54:21.280 --> 0:54:25.439
<v Speaker 1>of this, their their stock has been rising dramatically over

0:54:25.440 --> 0:54:30.240
<v Speaker 1>the course of of so far. Um and uh really

0:54:30.320 --> 0:54:34.200
<v Speaker 1>really interestingly, as of as of this week, the a

0:54:34.200 --> 0:54:36.560
<v Speaker 1>couple of the really high level people have been selling

0:54:36.600 --> 0:54:40.600
<v Speaker 1>off a lot of their shares in their own company's stock,

0:54:40.719 --> 0:54:45.920
<v Speaker 1>like fifties seven thousand of their shares. Wow, that is uh,

0:54:46.040 --> 0:54:48.960
<v Speaker 1>I'm actually looking it up right now because it's actually

0:54:48.960 --> 0:54:50.600
<v Speaker 1>a little lower than it was when I wrote it down.

0:54:50.640 --> 0:54:52.840
<v Speaker 1>Because originally we were going to record this episode the

0:54:52.920 --> 0:54:55.320
<v Speaker 1>day before. We're actually recording it right We're going to

0:54:55.400 --> 0:55:01.280
<v Speaker 1>record it yesterday. But on May fifteenth, fifteenth, the stock

0:55:01.320 --> 0:55:03.759
<v Speaker 1>price was at twenty two dollars and fifty cents when

0:55:03.760 --> 0:55:07.920
<v Speaker 1>I looked at originally. Uh, right now on May sixteenth,

0:55:08.200 --> 0:55:11.719
<v Speaker 1>at four forty four pm Eastern time, more information than

0:55:11.760 --> 0:55:14.400
<v Speaker 1>you need to know, it's at two and two cents.

0:55:14.400 --> 0:55:17.640
<v Speaker 1>So it's dropped almost fifty cents, right around fifty cents

0:55:18.239 --> 0:55:22.480
<v Speaker 1>since I checked it yesterday. So it's still and it's

0:55:22.480 --> 0:55:27.120
<v Speaker 1>obviously not at that pre August two eight high when

0:55:27.120 --> 0:55:29.719
<v Speaker 1>it was in the high forties and lower fifties, but

0:55:29.719 --> 0:55:33.040
<v Speaker 1>it's but it's dropped a great deal since then. Um,

0:55:32.320 --> 0:55:35.560
<v Speaker 1>I think I think that that well as of as

0:55:35.600 --> 0:55:38.440
<v Speaker 1>of wednesday, as of the May fifteenth, anyway, shares where

0:55:38.440 --> 0:55:42.799
<v Speaker 1>your shares were up very nearly for the course. Yeah,

0:55:42.840 --> 0:55:47.600
<v Speaker 1>so it's it's I think volatile is a safe wordy use, Yes, Yes,

0:55:47.880 --> 0:55:51.560
<v Speaker 1>that that's there's a lot of very very important financial

0:55:51.600 --> 0:55:53.799
<v Speaker 1>publications that are talking about e A right now, which

0:55:53.840 --> 0:55:55.880
<v Speaker 1>I which I always find fascinating, and all of them

0:55:55.920 --> 0:55:58.719
<v Speaker 1>are going like, be cautious, don't actually invest, we don't

0:55:58.760 --> 0:56:00.759
<v Speaker 1>know about this thing. Yeah, there does seem to be

0:56:00.760 --> 0:56:06.360
<v Speaker 1>a real problem with consumer confidence in an investor confidence

0:56:06.400 --> 0:56:08.520
<v Speaker 1>in a e A. And again that can really affect that.

0:56:08.800 --> 0:56:12.000
<v Speaker 1>You know, e A is a multibillion dollar industry company

0:56:12.120 --> 0:56:15.400
<v Speaker 1>right now. It's you know, it's revenues can be over

0:56:15.480 --> 0:56:18.200
<v Speaker 1>a billion dollars, can be over three billion dollars in

0:56:18.239 --> 0:56:20.960
<v Speaker 1>a good year, and so when you're talking about that,

0:56:21.080 --> 0:56:24.200
<v Speaker 1>it's kind of weird to think that it's it's value

0:56:24.239 --> 0:56:26.520
<v Speaker 1>as a company is in question. That suggests that there's

0:56:26.560 --> 0:56:30.040
<v Speaker 1>been some pretty serious missteps or that something's really funky

0:56:30.120 --> 0:56:32.319
<v Speaker 1>with the industry in general, right right, Well, you know,

0:56:32.360 --> 0:56:34.480
<v Speaker 1>it's I think it's just basically that thing where they're

0:56:34.520 --> 0:56:37.440
<v Speaker 1>not really they're not really heating all of all of

0:56:37.480 --> 0:56:40.400
<v Speaker 1>this this feedback that they're getting from from all of

0:56:40.440 --> 0:56:43.520
<v Speaker 1>their their from their fans, and that's you know, like

0:56:43.600 --> 0:56:47.160
<v Speaker 1>and they also just renew their license with with the

0:56:47.880 --> 0:56:51.800
<v Speaker 1>Football Association with a FIFA, FIFA and the soccer soccer

0:56:52.160 --> 0:56:58.239
<v Speaker 1>So yeah, sure, football whatever, go back to France. Um

0:56:58.320 --> 0:57:02.279
<v Speaker 1>until two? Um so well, and and FIVA is one

0:57:02.280 --> 0:57:06.240
<v Speaker 1>of those titles that consistently does really well for e A. Sure,

0:57:06.360 --> 0:57:08.600
<v Speaker 1>And and you know again like it's it's understandable why

0:57:08.640 --> 0:57:13.200
<v Speaker 1>would they would want that exclusivity? Now, we asked our

0:57:13.239 --> 0:57:15.560
<v Speaker 1>listeners if they had any specific questions they would like

0:57:15.640 --> 0:57:19.280
<v Speaker 1>us to address, and uh, we We've talked about some

0:57:19.320 --> 0:57:20.760
<v Speaker 1>of them already, so I'm not going to go over

0:57:20.840 --> 0:57:23.160
<v Speaker 1>all of them. But I've got two left that we

0:57:23.200 --> 0:57:26.959
<v Speaker 1>can chat about really quickly. Peter from Facebook said, what

0:57:27.000 --> 0:57:29.840
<v Speaker 1>was the most popular e A game? And if you

0:57:29.880 --> 0:57:33.680
<v Speaker 1>go from the debut of e A till present day

0:57:33.680 --> 0:57:36.600
<v Speaker 1>and you look at all the units sold, the SIMS

0:57:36.760 --> 0:57:39.440
<v Speaker 1>comes out on top with a level eleven point twenty

0:57:39.480 --> 0:57:43.800
<v Speaker 1>three million units sold globally according to VG charts. And

0:57:43.880 --> 0:57:47.280
<v Speaker 1>second place would go to Need for Speed Underground. Now,

0:57:47.480 --> 0:57:50.680
<v Speaker 1>UM that that doesn't surprise me because the SIMS is

0:57:50.680 --> 0:57:52.680
<v Speaker 1>one of those games that had a very wide appeal.

0:57:52.760 --> 0:57:54.240
<v Speaker 1>I mean I loved it when it came out. I

0:57:54.280 --> 0:57:56.920
<v Speaker 1>thought this was such a cool, innovative game. Also, I

0:57:56.920 --> 0:57:59.720
<v Speaker 1>thought it was funny to lock people out of the bathroom.

0:58:00.080 --> 0:58:03.600
<v Speaker 1>Um yeah, I did. Some pretty cruel things. Good good,

0:58:03.640 --> 0:58:07.720
<v Speaker 1>good thing to know about you, Jonathan, That's great. Uh.

0:58:07.720 --> 0:58:12.080
<v Speaker 1>And then Ian he asked also on Facebook if I

0:58:12.080 --> 0:58:14.800
<v Speaker 1>could give a rundown of some of the PR meltdowns

0:58:14.840 --> 0:58:18.000
<v Speaker 1>the e A has had. I could, but that's a

0:58:18.040 --> 0:58:21.000
<v Speaker 1>full episode. So I'm going to give you, Um, I'm

0:58:21.040 --> 0:58:25.520
<v Speaker 1>gonna give you three examples of PR attempts that e

0:58:25.720 --> 0:58:29.920
<v Speaker 1>A maybe did not handle very well. This isn't just

0:58:30.080 --> 0:58:33.560
<v Speaker 1>like coming out and saying, uh, we didn't do this right,

0:58:33.560 --> 0:58:35.600
<v Speaker 1>We're going to do better. This is this is this

0:58:35.680 --> 0:58:39.520
<v Speaker 1>goes beyond this. This comes into marketing mistakes. Okay, three

0:58:39.600 --> 0:58:43.040
<v Speaker 1>big marketing mistakes. Now, keep in mind that this might

0:58:43.080 --> 0:58:46.520
<v Speaker 1>not be entirely e a's fault. They could have partnered

0:58:46.560 --> 0:58:49.360
<v Speaker 1>with a marketing firm that came up with a terrible

0:58:49.400 --> 0:58:52.640
<v Speaker 1>idea and just ran with it. Um. One of them

0:58:52.760 --> 0:58:56.720
<v Speaker 1>was when e A was marketing the game Dante's Inferno,

0:58:58.320 --> 0:59:01.160
<v Speaker 1>remember that, Yeah, which had all these different characters that

0:59:01.200 --> 0:59:06.320
<v Speaker 1>were based off the Seven Deadly Sins. So the promotion

0:59:06.440 --> 0:59:10.080
<v Speaker 1>for the Sin of Lust came around and right around

0:59:10.120 --> 0:59:13.560
<v Speaker 1>the same time as Comic Con An e A had

0:59:13.840 --> 0:59:18.040
<v Speaker 1>a booth at Comic Con where they had some young

0:59:18.240 --> 0:59:23.360
<v Speaker 1>ladies dressed in costume models colloquially known as booth babes

0:59:23.960 --> 0:59:29.000
<v Speaker 1>to promote their games, and they had their Sin to

0:59:29.120 --> 0:59:34.160
<v Speaker 1>Win campaign, which was a contest that encouraged people to

0:59:34.480 --> 0:59:39.920
<v Speaker 1>quote commit acts of lust unquote with costumed reps at

0:59:39.960 --> 0:59:43.520
<v Speaker 1>e A's booth. Later on, the team clarified this as

0:59:43.560 --> 0:59:47.320
<v Speaker 1>saying that they were just trying to tell people to

0:59:47.800 --> 0:59:51.920
<v Speaker 1>take photos with these reps and then tweet and share

0:59:51.920 --> 0:59:56.080
<v Speaker 1>them in various ways. But no, that doesn't sound like

0:59:56.160 --> 1:00:02.640
<v Speaker 1>that thing. Yeah, I'm I I remember I had completely

1:00:02.640 --> 1:00:05.720
<v Speaker 1>blocked that from my memory, but I remember exactly how

1:00:05.760 --> 1:00:08.760
<v Speaker 1>offended I was by that because it was really offended.

1:00:08.800 --> 1:00:12.600
<v Speaker 1>Actually yeah, yeah, not a great move. Okay, So here's

1:00:12.600 --> 1:00:15.520
<v Speaker 1>another one. This one, This one really makes me scratch

1:00:15.600 --> 1:00:18.480
<v Speaker 1>my head. So theyre for a promotional campaign for the

1:00:18.480 --> 1:00:23.080
<v Speaker 1>game Mercenaries to e A converted a London gas station

1:00:23.840 --> 1:00:26.480
<v Speaker 1>to make it look like a military depot, so it

1:00:26.600 --> 1:00:28.480
<v Speaker 1>was like a depot that you would see in the

1:00:28.480 --> 1:00:30.600
<v Speaker 1>game Mercenaries to which is kind of cool. I mean,

1:00:30.600 --> 1:00:35.400
<v Speaker 1>we've seen promotions like that, like the Simpsons, Quickie mark

1:00:35.480 --> 1:00:38.920
<v Speaker 1>type stuff. They had a bunch of a bunch of

1:00:39.120 --> 1:00:42.160
<v Speaker 1>life size column dolls on London Underground for a while.

1:00:42.600 --> 1:00:46.480
<v Speaker 1>That clever stuff. So what's the big deal about converting

1:00:46.480 --> 1:00:50.320
<v Speaker 1>a gas station into a military depot. Well, they had

1:00:50.360 --> 1:00:54.320
<v Speaker 1>this campaign where anyone stopping at the military depot slash

1:00:54.360 --> 1:00:58.880
<v Speaker 1>gas station would get seventy dollars worth of gas for free.

1:01:00.080 --> 1:01:02.360
<v Speaker 1>Keep in mind that the game doesn't cost that much,

1:01:02.920 --> 1:01:05.240
<v Speaker 1>which meant that even if every single person who stopped

1:01:05.280 --> 1:01:08.280
<v Speaker 1>at that gas station then went out and bought a

1:01:08.280 --> 1:01:12.520
<v Speaker 1>copy of Mercenaries, to still at losing money. And they

1:01:13.040 --> 1:01:17.000
<v Speaker 1>ended up screwing up traffic patterns so badly in London

1:01:17.040 --> 1:01:19.240
<v Speaker 1>once people found out they could get free gas at

1:01:19.240 --> 1:01:24.320
<v Speaker 1>this station that it caused a massive traffic snarl and

1:01:24.440 --> 1:01:28.880
<v Speaker 1>even ended up with government censure of e A cost

1:01:28.960 --> 1:01:31.920
<v Speaker 1>him about fifty to convert the gas station into a

1:01:31.920 --> 1:01:36.280
<v Speaker 1>military depot. Seventy bucks of gas per person who stopped. Yeah,

1:01:36.640 --> 1:01:39.400
<v Speaker 1>not the most effective use of your marketing dollars, you

1:01:39.800 --> 1:01:44.080
<v Speaker 1>might argue. And here's the third one. So godfather to

1:01:44.720 --> 1:01:48.600
<v Speaker 1>the game coming out and e A, like many companies,

1:01:48.800 --> 1:01:53.560
<v Speaker 1>tries to court the gaming press by sending out publicity kits.

1:01:53.920 --> 1:01:57.720
<v Speaker 1>They have various little gifts in them. Right horses head, No,

1:01:57.720 --> 1:02:02.080
<v Speaker 1>no horses had no fish. Okay, no, knowly brass knuckles.

1:02:03.120 --> 1:02:06.439
<v Speaker 1>They send out brass, actual brass knuckles, actual breast knuckles, which,

1:02:06.720 --> 1:02:11.400
<v Speaker 1>by the way, not legal and also illegal to send

1:02:11.680 --> 1:02:15.160
<v Speaker 1>by May. So then they had to send a message

1:02:15.200 --> 1:02:17.680
<v Speaker 1>to everyone they had sent a package to saying could

1:02:17.680 --> 1:02:20.959
<v Speaker 1>you please send back those breast knuckles and please don't

1:02:21.440 --> 1:02:26.320
<v Speaker 1>sue us. Three examples of marketing failures on e A's part. Now,

1:02:26.840 --> 1:02:28.880
<v Speaker 1>there are plenty of other examples of e A coming

1:02:28.880 --> 1:02:32.520
<v Speaker 1>out and apologizing or not apologizing for something, like when

1:02:32.520 --> 1:02:35.680
<v Speaker 1>they won the America's Worst Company the second time. There

1:02:35.680 --> 1:02:38.040
<v Speaker 1>was a blog post that essentially said we can do better,

1:02:38.520 --> 1:02:40.520
<v Speaker 1>but a lot of people viewed it as kind of

1:02:40.520 --> 1:02:45.640
<v Speaker 1>a backhanded slap at gamers, and not not like so

1:02:45.720 --> 1:02:49.280
<v Speaker 1>much as owning up to problems, but rather saying, uh,

1:02:49.800 --> 1:02:52.080
<v Speaker 1>you know, people perceive it as this, so we can

1:02:52.160 --> 1:02:58.080
<v Speaker 1>change their perception. So uh and I'm paraphrasing obviously, but

1:02:58.080 --> 1:03:00.440
<v Speaker 1>but nonetheless it no, they've they've they've not always had

1:03:00.440 --> 1:03:02.600
<v Speaker 1>the best attitude about that sort of thing, or at

1:03:02.680 --> 1:03:05.640
<v Speaker 1>least that that seems to be the implication anyway, you know,

1:03:05.680 --> 1:03:08.120
<v Speaker 1>because we're all reading this through our own lens and

1:03:08.160 --> 1:03:09.960
<v Speaker 1>perhaps the way they intended it and the way that

1:03:10.000 --> 1:03:12.880
<v Speaker 1>we're interpreting it are just wildly different. Oh. Absolutely, And

1:03:13.120 --> 1:03:17.360
<v Speaker 1>you know, and it's an understanding, understandably upsetting situation to

1:03:17.440 --> 1:03:19.400
<v Speaker 1>be in UM to to have to be the company's

1:03:19.440 --> 1:03:22.240
<v Speaker 1>representative coming off of something like that. Yeah, there's there's

1:03:22.240 --> 1:03:24.600
<v Speaker 1>ever you know, it's you know that that's the kind

1:03:24.600 --> 1:03:26.040
<v Speaker 1>of thing that if if I had to write that,

1:03:26.120 --> 1:03:28.280
<v Speaker 1>I would draft it like nine and a half times

1:03:28.280 --> 1:03:30.000
<v Speaker 1>and get everyone in the office to read it and

1:03:30.000 --> 1:03:31.960
<v Speaker 1>make sure there was absolutely no way that it could

1:03:32.000 --> 1:03:35.080
<v Speaker 1>be perceived as being negative to the fans that I

1:03:35.080 --> 1:03:38.560
<v Speaker 1>had piste off so much to begin with. Yeah, that's fair. Well,

1:03:38.600 --> 1:03:42.000
<v Speaker 1>and that's our rundown of Electronic Arts, the history of

1:03:42.040 --> 1:03:44.920
<v Speaker 1>the company and what they have managed in the industry,

1:03:44.920 --> 1:03:48.480
<v Speaker 1>how they've been influential, both in good and bad ways.

1:03:49.360 --> 1:03:51.440
<v Speaker 1>I thought it was a really interesting story. It's it's

1:03:51.480 --> 1:03:54.880
<v Speaker 1>kind of fascinating. I'm curious to see where the company

1:03:54.880 --> 1:03:58.040
<v Speaker 1>goes from here. I will be going to the Electronic

1:03:58.200 --> 1:04:02.440
<v Speaker 1>Arts Keynote presentation at E three this year, so UM

1:04:02.480 --> 1:04:04.479
<v Speaker 1>I will give a full report on what I saw

1:04:04.480 --> 1:04:07.200
<v Speaker 1>when I come back. We're already we've already planned that episode.

1:04:07.240 --> 1:04:09.360
<v Speaker 1>So when I come back the day I come back

1:04:09.360 --> 1:04:12.440
<v Speaker 1>from E three, we'll be going into the studio and

1:04:12.560 --> 1:04:15.479
<v Speaker 1>I will be sleep walking my way through talking about

1:04:15.520 --> 1:04:18.080
<v Speaker 1>what I saw the three red Red Eye flight and

1:04:18.120 --> 1:04:21.439
<v Speaker 1>then then podcasting. Yeah. I land at six am, come

1:04:21.480 --> 1:04:25.120
<v Speaker 1>to the office, and I just rock star lifestyle. Yeah.

1:04:26.640 --> 1:04:29.320
<v Speaker 1>Sure does feel good to be a gangster. So guys,

1:04:29.360 --> 1:04:32.920
<v Speaker 1>if you have any suggestions for future episodes of text Stuff,

1:04:33.080 --> 1:04:37.120
<v Speaker 1>I highly recommend you let us know because otherwise we won't.

1:04:37.720 --> 1:04:41.480
<v Speaker 1>So write us our addresses tech stuff at Discovery dot

1:04:41.520 --> 1:04:43.560
<v Speaker 1>com or get in touch with us on Facebook or Twitter.

1:04:43.840 --> 1:04:46.760
<v Speaker 1>Our handle of both those locations is text Stuff H. S.

1:04:47.000 --> 1:04:48.800
<v Speaker 1>W and Lauren and I will talk to you again

1:04:49.240 --> 1:04:58.760
<v Speaker 1>really soon for more on this and thousands of other

1:04:58.840 --> 1:05:10.040
<v Speaker 1>topics because it has to of works dot Com