EA Hit By Profit Slump

[Modeps]

http://news.yahoo.com/news?tmpl=story&u...0504/ap_on_bi_ge/earns_electronic_arts

Electronic Arts announced fiscal fourth-quarter earnings Tuesday of $8 million, or 2 cents per share, compared with $90 million, or 29 cents per share in the same period of 2004.

For the first quarter of fiscal 2006, Electronic Arts expects to post a loss between 22 cents and 28 cents per share, compared with a profit of 8 cents per share a year ago. Revenue is expected to fall to $300 million to $340 million from $432 million. Analysts were expecting the company to post a profit of 4 cents per share for the quarter on revenue of $450.2 million.

:thumbsup:

 

[Fenixgoon]

finally, EA gets hit by its production of crappy games!

 

[SynthDude2001]

Well, I can't say I've personally been really interested in any EA games at all since the old Need For Speed games of 5-10 years ago...

 

[alent1234]

one of the reasons cited was a higher cost for licenses

 

[Modeps]

It's funny that they mention that the licensing is part of the reason for this... they imposed the higher costs on themselves.

 

[Feneant2]

Good, I hope it keeps going down and they have to stop buying all the companies out there and licensing everything that moves.

 

[edro]

Fight Night Round 2 is pretty good... but that's all I play.

 

[Modeps]

edro13: Yeah, I really wanted to buy that game seeing that there are like no other boxing games out. My self imposed boycott however makes me not get it.

Now... if 2kSports were to make a boxing game... that would rock, although I'm sure EA already licensed all the fighters.

 

[vi edit]

Mwuahahahahahaha!

:evil:

 

[StageLeft]

Originally posted by: SynthDude2001
Well, I can't say I've personally been really interested in any EA games at all since the old Need For Speed games of 5-10 years ago...

 

[Fingolfin269]

Originally posted by: Modeps
edro13: Yeah, I really wanted to buy that game seeing that there are like no other boxing games out. My self imposed boycott however makes me not get it.

Now... if 2kSports were to make a boxing game... that would rock, although I'm sure EA already licensed all the fighters.

I'm a 2k fan myself but I doubt they would make a game superior to Fight Night. Those two games are the only ones that have ever held my interest. Other than Punch Out! of course.

 

[Mr.IncrediblyBored]

Who in their right mind would invest in a games developer? The revenue swings quarter to quarter are unheard of in virtually any other industry. A delay of a key game could kill their expected revenue. I guess that's why EA is known for so much shovelware. They need to constantly release content to keep their revenue up and stock holders happy. Gamers seem to get the raw end of that deal.

edit: Their stock is down 11% in pre-market trading.

 

[CHfan4ever]

EA can rot in hell seriously.

 

[RagingBITCH]

hahahaha, eat it EA.

 

[Modeps]

another thing that's funny is that they also blame this on withering competition... they caused that too! Blame everyone but yourselves EA.

 

[ShotgunSteven]

Originally posted by: alent1234
one of the reasons cited was a higher cost for licenses

Well, if you can't afford to monopolize NFL games, get out of the locker room.

 

[mzkhadir]

I think they will be back in a year or two because of the exclusive licenses for the NFL and MLB, I think.

 

[meltdown75]

"EA GAMES - challenge everything"

bf1942 and Tiger 2004 were the last two EA games I picked up. I might snag TW 2005 but only when it's in the bargain bin. I'm a cheap bastard like that... this is also why I'm waiting to purchase KOTOR II.

 

[Modeps]

mzkhadir: They own the NFL license, not MLB. Take Two has that one.

 

[alent1234]

Originally posted by: ShotgunSteven

Originally posted by: alent1234
one of the reasons cited was a higher cost for licenses

Well, if you can't afford to monopolize NFL games, get out of the locker room.

maybe they took the profit hit this year in order to make more money in the next few years on the licensing?

 

[Linflas]

Good. After they bought OSI and drove it into the ground they deserve all the bad luck they can get.

 

[Modeps]

That was their thought I'm sure, but I dont think they'll get as much revenue as they were hoping to get. Also, they pay a per-year licensing, it wasnt all up front.

 

[40Hands]

w00t! down with EA games! I have some torches, anyone up for a good ol fashioned angry mob storming the EA HQ?

 

[ViRGE]

I wouldn't be cheering about this, from the looks of things the quarter was bad for everyone. This is really going to ream the stocks, maybe even fuel a pre-next-gen round of merging.

 

[Modeps]

This wasnt First Quarter Virge, this was Fourth Quarter last year... in other words, holiday time.