EA claims modest year guidance

Posted Aug 2, 2007 at 4:19PM EST by QJ Staff

Listed in: Wii, PS3, Xbox 360, PC Gaming Tags: Activision, Crysis, Electronic Arts, Michael Pachter, Microsoft, Peter Moore

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Electronic Arts, the world's leading game publisher, has announced the company's earnings for the first quarter (Q1) of fiscal year 2007 at a recently conducted conference call earlier, and questions arising from the publisher's overall confidence began to rise after it claimed that it was "too early" to hike up its full year guidance.

 

According to Wedbush Morgan analyst Michael Pachter, even EA's Q2 guidance has the securities firm "somewhat confused." The publisher's release list for the later part of 2007 has brought more favor in analysts and investors' eyes, which include Boogie, SKATE, My Sims, Medal of Honor: Airborne, and highly-anticipated Crysis.

"For the balance of the fiscal year, we expect industry growth of 18%, and think that EAÂ’s release schedule favors the company to again grow above the industry average," added Pachter, and even fellow analyst Mike Hickey of Janco Associates, Inc. shares the same feeling of optimism for the company.

"In our view, [Electronic Arts'] lineup positions it to gain market share during the quarter," commented Pachter, saying that even Wedbush Morgan's estimations could be millions shy off the publisher's actual performance. US$ 925 million, according to the game industry analyst, could be as much as US$ 75 million higher for Q2.

Instead, the press conference has impressed upon investors a certain air of skepticism over EA's overall resolve, but current actions taken by the publishing giant help uplift the image of the company overall. "The companyÂ’s recent business realignment, and management appointments demonstrate that it is serious about maintaining its market share leadership and growing margins," Pachter explained.

Hickey agreed with Pachter's analysis, stating that the company's choice to move things around a bit would attract experienced game industry veterans, counting ex-Microsoft VP Peter Moore and ex-Activision president Kathy Vrabeck, who have left their respective camps in favor for EA's stronger foundation in the industry.

We'll update you on Electronic Arts' Q1 performance right after this. And more developments on publishers' Q1 financial earnings as they come in. Keep tuned.

Via Gamasutra

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Comments 

 

# meh — Guest 2007-08-02 19:13

if you guys are breaking so much ground on technology explain to me why madden 08 for the ps3 runs at 30fps while other games run at 60fps.

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# meh — Guest 2007-08-02 19:16

if you guys are breaking so much ground on technology explain to me why madden 08 for the ps3 runs at 30fps while other games run at 60fps.

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# skies — Guest 2007-08-03 14:58

Because you're an ignorant fool.

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