Analyst says EA Sports may be a cause for concern |
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Electronic Arts stocks have always been a safe bet for longtime investors because of the company's ability to profit year in and year out with its plethora of video game titles. After the latest NPD numbers rolled in, though, one analyst voiced his concern for the gaming industry's biggest third-party publisher.Deutsche Bank's Jeetil Patel says that stockholders may be overestimating EA a little too much. He says that the decline in some of EA's biggest portfolios is a cause for concern.
"We think investors are clearly giving EA far too much credit to its scale and product quality when its industry leadership position may be under attack," Patel explains.
The market analyst pointed out that the latest market figures don't reflect the real score within EA's sales turf. He says that the EA Sports division may be on the decline as franchises like Madden NFL series NCAA Football are showing signs of slowing down.
Madden NFL 08 (PC, Xbox 360, PS2, PS3, PSP, Nintendo Wii, and DS), for instance, sold five percent less than predecessor Madden NFL 07 despite its high quality and elaborate ad campaign. More striking is the 17 percent decrease in NCAA March Madness 2008's (Microsoft Xbox 360, Sony PlayStation 3) sales when stacked against last year's stats.
Patel says that the only reason that EA's numbers are looking good right now is because Rock Band had a successful run. NCAA March Madness 2008 was released a month earlier than the usual launch period of its predecessors, giving EA a boost before the NPD let loose on the numbers.
EA recently closed its Chicago studio because of the division's inability to generate profits. EA Chicago is responsible for the well-made Fight Night series which had three iterations before being shelved.
Via Gamedaily
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Comments [refresh]
After making sure the Dreamcast died and Xbox never made a dime of profit up till now, he now leads EA into the ground.
That guy sure knows how to purify the world of all bad brands. I like that guy!
yeah. lol!
no joke huh!....well....to be fair EA had sucked big time b4 moore got there...he just took the company to another level.
there's a bunch of nice titles for EA after he took over. Rock Band and Crysis are prime examples. I just wish EA Sports goes back to the form it had back in the late 90's when they offered yearly sports games with more than just roster updates and mini-games.
Just because for one year two of their major titles I wouldn't be worried if I was a holder...not everyone buys EVERY years sports games. I only buy them if there's a huge difference, my friends only buy a sports game every 2 years. Also if I was a holder I wouldn't be concerned after titles like Rock Band, skate., NHL 08 get reviewed so good. One thing to consider for the decline in Madden as well is that APF was released this year and lots of people thought it would be awesome (including myself) and some people just don't have the funds to buy 2 football games in one year...or just see a point
Crytek made crysis, not EA, just published it
sides that game was a waste of money, so dissapointing
FN3 was one of the best 360 games out there. I know it sold well and made money so I dont understand why they would shelve the franchise. If they made another one it would make a lot of money because there arent any other boxing games available.