Software engineers straight out of college often make six-figure salaries, not counting equity compensation.Technologyread more
Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
Wall Street, though, is clamoring for a rate cut, with an 85% chance of a move in July and a 61% probability of three reductions by year's end.The Fedread more
A company spokesperson said the outage was the result of a "an internal technology issue" and was not security related.Retailread more
Using MIT's living wage calculator, CNBC Make It mapped out the minimum amount a single parent must earn to meet their basic needs without relying on outside help in every...Earnread more
In the survey, 66% of Democratic primary voters say they'd be enthusiastic or comfortable about Biden as their nominee to take on President Trump in the 2020 election. Just...Politicsread more
You can save money by doing a quick check and unsubscribing from apps you no longer use.Technologyread more
The flattening of the yield curve is exuding a bad omen for the stock market if history is any guide.Marketsread more
Stratolaunch, the world's largest airplane, which flew once, is up for sale, sources familiar told CNBC.Investing in Spaceread more
Transparency is key… or is it? With the first-ever non-transparent, actively managed exchange-traded fund receiving approval from the SEC, "ETF Edge" goes straight to the...ETF Edgeread more
Mired in a crisis over its best-selling 737 Max plane, Boeing could hand the spotlight over to its rival Airbus at the Paris Air Show.Airlinesread more
The controversy over in-game microtransactions will have a lasting negative impact on game publishers, according to one Wall Street firm.
"Game development times are getting longer, and R&D costs are growing faster than they had previously," analyst Doug Creutz wrote in a note to clients Friday. "This isn't a monopoly business … Angering your customer with bad MTX [microtransactions] does matter."
Creutz reaffirmed his $66 price target for Activision Blizzard shares, representing 7 percent downside to Thursday's close. He also reiterated his $104 price target for EA stock, which is 9 percent lower than Thursday's close.
The analyst said research and development spending growth is accelerating for gaming companies. He noted R&D budgets for the four largest publishers grew at roughly a 1 percent annual rate from 2010 to 2015, then rose to more than 8 percent per year the last two years.
Creutz said the outrage over the initial money-making strategy in EA's "Star Wars Battlefront II" likely hurt the title's sales by 3 million to 4 million units versus the company's 14 million guidance. He noted Activision's "Destiny 2" player engagement is waning after the community questioned the game's design decisions.
The "industry plans to further expand live services revenue appear to have run into some roadblocks with gamers sounding off against some recent titles, notably EA's "Star Wars Battlefront II" and Activision's "Destiny 2" (though the issues with the latter go beyond just MTX)," he wrote. "We think writing off angry gamers as largely irrelevant is a mistake."
"[Star Wars Battlefront II] has pretty clearly significantly underperformed expectations and remains without a live services revenue stream, while Destiny 2 has at the least suffered some unwanted engagement attrition. We suspect that 2018 will see a pullback on industry attempts to aggressively drive MTX growth as a result."
The analyst also warned gaming industry stocks may falter due to high expectations.
"Current valuations are pricing in an awful lot of good news, with an investor base that seems at least somewhat complacent," he wrote. "It's not just that gamers are angry and complaining; there have clearly been performance consequences for the games involved. And in an industry where every company is dependent upon a relatively small number of franchises, this matters."
Electronic Arts and Activision Blizzard did not immediately respond to requests for comment.