Following backlash over having micro-transactions in "Star Wars: Battlefront II," video game publisher Electronic Arts' stock value took a nosedive according to CNBC News. In a month-to-date period, the company was dealt an 8.5 percent loss - estimated at around $3.1 billion.
'Battlefront II' to blame?
The drop in stock value comes shortly after the controversy over the game's inclusion of micro-transactions. Despite its $60 price tag, "Star War: Battlefront II" also featured loot boxes that must be unlocked with crystals purchasable in-game. However, EA DICE, the game's developer eventually removed in-game purchases after facing criticism from Disney.
The loot boxes also had a pay to win aspect whereas they contained items that could be used to enhance a player's performance, giving the player an unfair advantage against other players in the multiplayer mode. Many consumers have been very vocal on this aspect especially. In fact, it led to the game's Reddit page making history by having the most downvoted response on the social platform's history.
A 'Star Wars' game nobody wanted
Analysts believe that the tremendous drop in stock value is connected to "Star War: Battlefront II." The sequel was released on November 17 and the publisher had originally planned to ship 14 million copies of the game within its first five months of sales. However, sales are at an all-time low for the series.
Within the first week, U.K. sales charts show a 61 percent decline compared to its predecessor released two years ago. CNBC analysts suggest that player outcry over the micro-transactions is the most likely reason in the game's low performance.
In other bad news
In response to the loot box scandal, the Belgium Gaming Commission announced to the world that it was pursuing the banning of micro-transactions in video games throughout Europe.
The group believes these micro-transactions can constitute gambling due to their ambiguity and addictive allure towards players, especially children.
Belgium's Minister of Justice Koen Geens states that micro-transactions constitute the "mixing of gambling and gaming.
Belgium isn't the only state considering prohibiting micro-transactions in Video Games.
Shortly afterward, the state of Hawaii launched its own investigation into "Star War: Battlefront II" to protect children from "predatory practices."
What is EA's future?
Given the ramifications with these losses, it's hypothesized that EA will have to adjust their in-game monetization if it wants to better secure its profits from here on out. The company might also resort to layoffs and restructuring in the coming months.
