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    EA Swallows a $300M Pill, Shuts Down Playfish, and Leaves Sim Facebook

    In 2009, Electronic Arts joined the social gaming rush, spending millions to establish itself as a Zynga competitor. The company spent $300 million purchasing Pet Society studio Playfish. Not even four years later, EA is shutting down all Playfish games, including SimCity Social.

    In July 2012, when shares in Electronic Arts were trading beneath $11 for the first time since the 1990s, then CEO John Riccitiello tried to explain why it was that the company’s investors were so shaken. He believed that it came down to a misunderstanding of the modern video game industry. “After many years of stellar growth, we more recently got into a place where I think investors are having a hard time understanding where growth in the industry is coming from,” Riccitiello told CNBC at the time. “And they’re unclear about ongoing growth in the Facebook platform for gaming and mobile.” Today it appears that Riccitiello and EA’s other executives were equally unclear about the potential of Facebook gaming. Just over three years after acquiring Playfish, one of Facebook gaming’s biggest competitors, EA is shutting the studio down.

    On the official Playfish forums (via GamesIndustry International), EA’s community team announced the impending closure schedule of six Facebook games in total. On May 14, the studio will shut down Madden NFL Superstars ’11 and’12, as well as NHL Superstars. Then on Jun. 14, it will go on to shut down SimCity Social, Pet Society, and The Sims Social. This comes not even a full year after Electronic Arts sued developer Zynga for releasing The Ville, which it claimed copied and therefore hurt the profitability of SimCity Social.

    “We know that you may be disappointed by this,” said EA, “Retiring games is never easy, we hope you enjoyed playing SimCity Social as much as we enjoyed making it. Thank you to all of our passionate and dedicated players for supporting SimCity Social. We hope to see you in some of our other titles on Facebook and other platforms.

    For those that purchased and are still holding on to Playfish virtual currency, EA says to spend what you have before the games are shut down in the coming weeks, without offering any kind of compensation.

    EA isn’t abandoning Facebook by any means though. The Simpsons: Tapped Out, developed by EA Mobile, remains a major earner, and across Facebook, Android, and iOS, that game generated $23 million for EA during the holiday quarter.

    It would seem, however, that Playfish is done for, even after EA spent scads to acquire the company. In November 2009, right as the social game boom was kicking into high gear and companies like Zynga saw their valuation skyrocket, EA spent a whopping $300 million to acquire Playfish­, and it promised the studio another $100 million if it could hit certain milestones.

    Read it here.



    User Feedback


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    Good job, EA! $ 300 M wasted and yet another small company has been bought and killed by EA. 

     

    Are you guys running for a 3rd "Award" ?

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    And still I bet noone in that boardroom is waking up and seeing that online games really aren't the things the gamer wants....

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    I'm beginning to change my mind about EA. The company is delivering at least three good laughs a week and it's not costing me a penny.

     

    While I feel bad for some of the studios' employees caught up in this mess, this isn't all bad news for the industry. EA's bad missteps will eventually create a vacuum that some of these people will be positioned to fill

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    And still I bet noone in that boardroom is waking up and seeing that online games really aren't the things the gamer wants....

     

     

    I recommend that you read the material below and you'll understand why everyone is moving in that direction.

     

    :read:

     -  Study: US rapidly becoming a nation of gamers

     

    Also know that Microsoft and Nvidia bet on a partnership platform integral to providing content online Agawi and that if by chance the new stuff in market consoles do not give enough momentum to sales recovery, this is certainly the way of all the editors .

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    another small dev destroyed by the Evil Alliance. this company is toxic. this should serve as yet another big waving red flag to any other dev who is even thinking about being bought out by them.

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    I'm beginning to change my mind about EA. The company is delivering at least three good laughs a week and it's not costing me a penny.

     

    While I feel bad for some of the studios' employees caught up in this mess, this isn't all bad news for the industry. EA's bad missteps will eventually create a vacuum that some of these people will be positioned to fill

     

     

    That moment... when you realize that watching EA is more entertaining than their services...

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    I'm beginning to change my mind about EA. The company is delivering at least three good laughs a week and it's not costing me a penny.

     

    While I feel bad for some of the studios' employees caught up in this mess, this isn't all bad news for the industry. EA's bad missteps will eventually create a vacuum that some of these people will be positioned to fill

     

     

    That moment... when you realize that watching EA is more entertaining than their services...

     

     

    Haha! :P

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    This is as good as a soap opera or drama of some sort.  I think that's the market EA really has cornered.  They seem to be one of these companies that buys out other developers and franchises just to shut them down.

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    ... Parks defines a gamer as “individuals in a broadband household who play at least one hour per month.”...

     

    That's a pretty broad definition for a 'gamer'.

     

    Yeah, and after reading the article. One could even say that all owners of smart phones and Blu-Ray devices are also gamers. Irregardless of amount of time playing or accessing a game. Just because these devices can allow access to games of some variation, therefore consumers with these devices and other electronic devices are considered gamers.

    - lets make vague definitions apply to all. 

        If you have electricity flowing into your home you are a gamer!

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