economics

EA’s Not-Good Day

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Well, in case you hadn’t heard, EA had it’s stock price drop, probably due to the loss of members of the Star Wars MMO – yes, that MMO lost people.  And, yes, on top of this a restructuring is coming.

So the question arises, is EA a takover target.  Yeah, I’m already seeing articles on that right after the bad news.

As an old gamer, this question has come up a lot.  EA has its highs and lows, and certainly has had a very erratic time of it as of late.  Since I’ve seen so many times EA has supposedly been having a bad time, I’m kind of used to it.

Looking it over, EA does seem to have a lot going for it – it has IP, it obviously has plans for gaming (such as social), so it’s not flailing.  It’s also published some good stuff.  So I get a bit cynical when I hear another story of EA getting bought out.

However, I’d add a few things.

  • First, I don’t think EA is going to get bought out right now.  This is just one thing, and you know – seen it all before.  My one concern is that if EA keeps having problems or has a rapid-fire series of issues . . .
  •  . . . there are players with big money out there.  Remember the wits that suggested Apple just buy into Hollywood?  Think about the other big players out there – and then don’t discount foreign sources as well.  Some have weathered the economic issues well, and could whip out the cash if EA remains vulnerable.  I’m not saying Apple would buy them (I doubt it), but other multimedia conglomerates like Disney or Vivendi.
  • There’s also the chance that EA doesn’t look like a good acquisition.  I mean when there’s so many other ways to get into gaming, if EA actually implodes it might be more trouble than it’s worth to buy, so you wait for a fire sale.  Speaking of . . .
  • I’d also add that a troubled EA might survive by selling stuff off or by partnership or deals.  They have the goods.

In the end I don’t see EA as being taken over in the short term, and it’d take other stumbles for them to be in that situation. It’s something to watch out for, but not panic over.

So if you want to work at EA – beyond the restructuring – I don’t see any reason why not.

– Steven Savage

Economics, Airlines, And Education

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Admittedly the “economics of airlines” doesn’t sound like exact fan-to-pro stuff here, except for travel and airline model fanatics, the Washington Monthly has a fascinating deconstruction of the continuously stupid state of airlines in the US that’s worth reading.

As opposed to analyzing the article – which stands on its own – I’d like to say “more of this, please” and note that, like it or not, this is stuff you should be reading.

Yes, this is a plea for you, my fellow geeks, to get a hell of a lot more into economics.

No, it doesn’t look easy. Yes, it can be obscure. Yes, it can be depressing. But understanding economics is vital to your survival. Face it, we live in a time where a presidential candidate can claim responsibility for a program he opposed, so it’s time to pay attention. ).

If you’re not into economics like I am, then there’s two things to remember:

  • Economics affects stuff you like. For instance if you do travel a lot, the Washington Monthly article really IS useful.
  • Economics lets you succeed.
  • This affects your survival, so Read Or Die.

One of those ought to motivate you.

That’s why I treasure articles like that deep analysis as I learn from it – because I do travel and have an interest in that part of the economy. It’s something that pertains to my interests, gives me ideas on success (I certainly know to watch airports now for my travel plans), and it helps me prepare for what will probably be some inevitable upheaval in airlines. Again.

– Steven Savage

This May Explain a Few Things About New Jersey

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I have friends in NJ, and nearly moved there myself once.  Apparently I dodged a Snooki because it did really lousy economically the last year.

This is one of those reminders of why you follow local economic news – it can be very revealing.  Take it from a Silicon Valley guy where economic issues change if you drive a mile or two, and 3 major cities combine into a diverse megaregion.

– Steven Savage