EA Invests $80 Million Dollars To BioWare’s Old Republic MMO
EA is feeling so confident with BioWare’s Old Republic MMO that they have invested $80 million dollars to the development. Wedbush Securities analyst, Michael Pachter said in a statement to IndustryGamers,
“The contribution from the Star Wars MMO is significant. Under the terms of its deal with LucasArts, EA is required to pay a royalty, but was required to front all of the development, marketing and distribution costs, as well as the costs of building out servers for the game. We estimate that LucasArts’ share is 33% of revenues, AFTER EA recoups its investment in game development. Given that the game was in development for over four years, with an estimated 200 full-time developers working on it, we estimate that EA’s investment exceeds $80 million,”
EA has mentioned that it doesn’t need a whole lot of subscribes to make all that profit back and by having about 500,000 subscribers to the mmo they’ll break even with Lucasarts. The MMO is supposed to come out this year but according the Electronic Art’s investor relations conference call, its could possibly launch in January.