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Financial Analyst Claims Investors Overreacted to SWBF2 Loot Box Controversy

Posted by Suzie Ford on Jan 08, 2018  | Comments

Financial Analyst Claims Investors Overreacted to SWBF2 Loot Box Controversy - Star Wars: Battlefront II - MMORPG.com

According to one BMO Capital Markets analyst, EA investors overreacted to the Star Wars Battlefront 2 loot box controversy last year. Gerrick Johnson has written that stocks should outperform in 2018 despite the outrage.

"Consumer pushback to EA's Star Wars in-game monetization strategy has undermined some investor confidence and has driven the stock lower." said analyst Gerrick Johnson. "After further consideration, we believe the reaction may have been overdone, providing a buying opportunity for what is, otherwise, a solid long-term history."

Johnson further opined, "While the cancellation of micro-transactions in Star Wars makes for an intriguing headline, the impact sounds much larger than it really is. Over the longer term, EA is experiencing a tailwind that is benefitting the entire video game software industry: the transition of physical software sales to digital downloads, which offer higher margins and the opportunity for incremental add-on sales and multi-player online services."

You can read the full report over at CNBC.

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Suzie Ford / Suzie is the Associate Editor and News Manager at MMORPG.com. Follow her on Twitter @MMORPGMom