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EA to Make a 'Significant' Profit

Posted by Suzie Ford on Dec 01, 2011  | Comments

EA to Make a 'Significant' Profit - Star Wars: The Old Republic -

Earlier in the week, Blizzard's Bobby Kotick opined that EA might not see the stellar profits from Star Wars: The Old Republic that might be expected. However, financial analyst Michael Pachter begs to differ. LucasArts is anticipated to take a 35% cut of profits but only after EA has recouped its development costs.

"On an ongoing basis, they will split revenue from running the subscription business. My best guess is that they will attract 1.5 million subscribers paying around $15 a month, so they should generate around $270 million in revenue. If LucasArts gets 35 per cent and if EA incurs around 35 per cent operating expense, they make 30 per cent, or around $80 million per year, in profit. That's not bad."

Read the full interview over at Eurogamer.

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