Slaiv Posted March 22, 2005 Share Posted March 22, 2005 EA Stock Drops on Lowered EstimatesSlow sales leave the heavy hitter taking a heavy hit.by David Adams March 21, 2005 - Citing slower-than-hoped software sales, Electronic Arts today lowered its revenue expectation for fiscal 2005, prompting a dramatic share drop of 8.55 points, or about 12 percent, in after-hours trading. During a conference call today, EA said that several factors led to new full-year net revenue estimates, now at $3.1 to $3.125 billion, as opposed to $3.275 to $3.325 billion offered previously. The company said it underestimated the impact of hardware shortages -- particularly the lack of slim-line PS2s -- during the company's post-holiday fourth quarter. Hot holiday titles such as Need For Speed Underground 2 and Madden 2005, while selling strongly, still did not do as well in Q4 as EA had hoped, and titles released in Q4 also underperformed. "These results are clearly disappointing," said EA chairman and CEO Larry Probst in a statement issued today. "While our new releases are performing reasonably well, they have not been able to offset a significant falloff in catalog sales." During the conference call, Probst also blamed strong competition for EA's disappointing sales. Probst identified Half-Life 2, Halo 2, Grand Theft Auto: San Andreas, Gran Turismo 4, and World of Warcraft as titles whose strong performance cramped core EA franchises. World of Warcraft in particular, he said, has gained surprising momentum even outside gaming enthusiasts. "We are very disappointed that we're having this call," said CFO Warren Jensen during the conference. "In short we missed our plan and we missed our forecast." Despite the lower software sales and the effects of console shortages, EA expressed confidence going forward, restating its commitment to the next console generation, in which it is investing heavily. "Next-generation development is expensive, but critical," Jensen said. Probst was careful to say that the revised estimates did not entail a larger trend: "Is something fundamental changing in the industry? No." In addition to its commitment to new hardware, EA emphasized that it intends to be a leader on Sony's new PSP, for which it will release about 15 titles in the new fiscal year. As a result of decreased revenue, EA will not award bonuses to its senior staff, though it still plans to reward its employee base appropriately. From this article located on IGN:http://pc.ign.com/articles/597/597770p1.html While I sympathize with EA's employees, I certainly do not for the company. Trying to stealthily take over Ubisoft, then poorly covering it up when made public; gaining exclusive rights to the NFL; acquiring Free Radical; and vying for control over nearly every other sports league. And don't forget obtaining the Bond licence - EA's efforts in this field have really sucked. There are many other developers who could make much better use of this license... Link to comment Share on other sites More sharing options...
Chaosmaker Posted March 23, 2005 Share Posted March 23, 2005 Ha serves then right trying to take over the world they will hear no sympathy from me :laugh2: :laugh2: :laugh2: Link to comment Share on other sites More sharing options...
Morbid_Pathologist Posted March 23, 2005 Share Posted March 23, 2005 as much as i hate their games and wish they never existed, its a shame for the employee's, but ill never forgive those fools for making C&C:Generals....such a waste.... Link to comment Share on other sites More sharing options...
Slaiv Posted March 23, 2005 Author Share Posted March 23, 2005 EA has the potential to be the best publisher available [other than Nintendo, of course. :tongue: ]. The chances of this potential being realized, however, are very small. Think about it - they have Free radical under their wing, which I believe is one of the best developers out there. They have very talented developers - they're rushed by the upper-level employees and pushed to work insane hours on crazy development schedules. Link to comment Share on other sites More sharing options...
Stanhead Posted March 24, 2005 Share Posted March 24, 2005 Apart from when I bought Need for Speed: Hot Pursuit 2 and NFS:UG, I have never supported EA. They can burn in hell! I hated NFS:UG, don't know why I bought it. Hot Pursuit 2 was good though. Link to comment Share on other sites More sharing options...
Morbid_Pathologist Posted March 25, 2005 Share Posted March 25, 2005 Apart from when I bought Need for Speed: Hot Pursuit 2 and NFS:UG, I have never supported EA. They can burn in hell! I hated NFS:UG, don't know why I bought it. Hot Pursuit 2 was good though.<{POST_SNAPBACK}> *if i keep looking at your avatar, ill die of laughter!* the older NSF games like Hot Pursuit were great....then EA went "hey!, lets copy movies and keep remaking the same game" and Need For Speed : Underground was born. was EA responsible for Tony Hawk : Underground as well? (i get confused since activision made the first few i think) Link to comment Share on other sites More sharing options...
Slaiv Posted March 26, 2005 Author Share Posted March 26, 2005 EA is in no way affiliated with the Tony Hawk series, although the two share strikingly similar features [copying films, porr graphics, "sequels" that are mere updates of the original, etc...] Link to comment Share on other sites More sharing options...
Peregrine Posted March 26, 2005 Share Posted March 26, 2005 gaining exclusive rights to the NFL; acquiring Free Radical; and vying for control over nearly every other sports league. I don't see what the big deal is with this. It was an extremely good decision from a business perspective. EA doesn't have the duty to sacrifice their profits because you dislike them. And for all the EA hatred out there, they seem to be doing pretty well. If they truly were as bad as all of you say, they wouldn't be in business anymore. Link to comment Share on other sites More sharing options...
Slaiv Posted March 26, 2005 Author Share Posted March 26, 2005 It's the fact that EA's games are lazily and sloppily designed that gives me reason for my opinions. Year after year EA puts out the same Madden game with a new title and updated roster. As soon as Sega began to gain success with its NFL 2k series, EA gained exclusive rights to the NFL. Now, instad of actually having to make a quality, enjoyable game to succeed[gasp!], EA can now sit and do even less than before because people will have no other option. And apparently more and more people are starting to dislike EA - a 12% drop in stokcs is a rather large percent for a company like EA. Link to comment Share on other sites More sharing options...
Peregrine Posted March 26, 2005 Share Posted March 26, 2005 Year after year EA puts out the same Madden game with a new title and updated roster. Apply that to all sports games, and I'll agree with you. EA is just one of the crowd doing the same thing. Now, instad of actually having to make a quality, enjoyable game to succeed[gasp!], EA can now sit and do even less than before because people will have no other option. Except not to buy it. But they still will, so it was an excellent decision by EA. Which is what I don't understand, people acting like it's some great evil to make sane business decisions. This isn't unbelievable news, it's how the world works.And apparently more and more people are starting to dislike EA - a 12% drop in stokcs is a rather large percent for a company like EA. Good for them. If sales drop too much, EA goes away. If they don't, they're obviously finding an audience somewhere to buy their games. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.