Analyst: EA Has Missed The Boat This Generation
See Full ImageBack in 2007, new PlayStation 3 owners and publishing giant Electronic Arts were at odds. The problem was that EA titles were either crappy 360-to-PS3 ports, or worse, multiplats released simultaneously that were inferior on Sony's machine.
And although we've seen great growth in ability since then, one analyst simply says that EA has "missed the current hardware cycle" and aren't likely "to return to historical operating income margin levels" at any time in the near future. This Cowen Research report, summarized by GamesIndustry.biz, isn't exactly glowing and concludes that after more than a few disappointments, "Electronic Arts now deserves a lower valuation premium than the company has historically enjoyed." Basically, they've failed to deliver on their earnings projections, and despite the excellence of two IPs in 2008 (Mirror's Edge and Dead Space), EA has continually toned down their guidance for the next fiscal year. However, the report does say that while EA's projections for the upcoming financial year are "aggressive," they're not impossible. Provided they do some more cost-cutting, their revenue target of $4.3 billion might be achieved, and right now, the share rating advice for EA is "neutral." You should definitely read more about the report, and the games and how they've performed; it's quite interesting.
For our part, we've already forgiven EA for their early transgressions and provided they keep giving us special projects that are worthy of our collections at home, we're happy. It's all about the games for us. ;)
5/26/2009 Ben Dutka
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Comments (28 posts)
Qubex
Tuesday, May 26, 2009 @ 11:26:04 AM
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Maybe they will redeem themselves in the long run. It's all about quality... without quality people will not easily part with $60 dollars regularly... if they get burnt, they will be far more cautious next time... or go for the second hand market; which wouldn't help a company like EA either in the long run.
Q!
"i am home"
Last edited by Qubex on 5/26/2009 11:27:57 AM
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N a S a H
Tuesday, May 26, 2009 @ 11:26:18 AM
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Highlander
Tuesday, May 26, 2009 @ 11:38:45 AM
Not to mention EA has an immense portfolio of games, I think this analyst needs to consider that while some games may under perform, others do not, and still others are 'sure things' in terms of decent sales.
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jaybiv
Tuesday, May 26, 2009 @ 1:40:49 PM
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Highlander
Tuesday, May 26, 2009 @ 11:25:59 PM
It's KOS-MOS, you can't beat KOS-MOS. Long flowing Blue hair, ruby red eyes, an intense expression and a body that's registered throughout the galaxy as both a deadly weapon and a work of art. See, it's undeniable, KOS-MOS can't be beat. Besides, if you try, she'll X-Buster your butt back into an alternate dimension. ;-)
P.S. Shion may have to drop in for a week or too soon. While not as tough as KOS-MOS, she has her charm...
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Geobaldi
Wednesday, May 27, 2009 @ 5:32:24 PM
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dveisalive
Tuesday, May 26, 2009 @ 11:41:21 AM
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BTNwarrior
Tuesday, May 26, 2009 @ 1:08:08 PM
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jlch777
Tuesday, May 26, 2009 @ 11:53:22 AM
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On the other hand you have a studio like Criterion where you can always expect a quality product from them.
I am hoping that NFS Shift(developed by Slightly Mad Studios) turns out to be a quality racing game.
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MornelitheVT
Tuesday, May 26, 2009 @ 12:28:08 PM
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Firstly, just because something is a 'sure thing'. Doesn't mean EA did it justice, nor does it mean the money they got for it was warranted. Sure Things, are often what developers will half-ass, just so they can take our money. When they do it right, and do it well, so be it. But, just giving them a blank-check, simply because they brought a franchise back from extinction...nah, not my cup of tea.
My second issue with EA of late (and a few other developers/publishers), is simply the DLC issue. I'm really not ok with segments of the gaming population, BE THEY SONY OR MS Fans, being jipped out of the entire experience, simply because EA (Or other publishers/developers) doesn't know how to say no to Sony or MS. I've put my foot down at this point, and flat-out refuse to buy any game that promotes this kind of marketing. Sure, it's nice that Mirror's Edge had exclusive DLC for those who own Sony's machine. But, what of those who do not? And...I can certainly recall my frustration, anger, hatred and resentment when the same tactics were employed by MS/Rockstar with regards to GTAIV. No more, I say. EA has a long ways to go to prove to me that they care more for the gamers and community in general that made their company what it is today, and less for the mighty dollar.
I'm personally done with any game that gets touched by this practice. I've far...FAR too many other games to play, at present. It's not that difficult a decision to just let one go.
Morne
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Doosharm
Tuesday, May 26, 2009 @ 5:49:24 PM
Because of that fact, I can't blame any of the big game companies for doing what they do. Afterall, their goal is not to make games, its to make money by selling games. And if people are willing to pay for your products no matter their quality, why change? It is up to us, as gamers and good consumers, to place all of our support on the developers who give us more than the minimum and who are in it to make great games first and a lot of money second.
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SkantDragon
Tuesday, May 26, 2009 @ 12:33:25 PM
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EA has its policies of putting out yearly games for each IP and also of being 'innovative' in finding new ways to fleece gamers for money.
These policies have driven up EA's profits. But at the same time it's also been developing a bad reputation for them.
Many gamers now may be very interested in a game, but when they see it's published by EA, they put it back on the shelf. They expect it to be a quickly written yearly game chock full of bugs and game play issues. And that $60 is only the first downpayment they'll be required to cough up for the priviledge of playing it.
Personally, I've nearly completely sworn off buying anything from EA anymore. And I hate it when they advertise a game I would otherwise want. Because I want that game to be released by another publisher so that it's not ruined.
And I'm pretty sure I'm far from the only one that feels this way.
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WorldEndsWithMe
Tuesday, May 26, 2009 @ 2:13:12 PM
Last edited by WorldEndsWithMe on 5/26/2009 2:14:21 PM
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elass0wyp0
Tuesday, May 26, 2009 @ 3:30:20 PM
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HOODGE
Tuesday, May 26, 2009 @ 4:50:27 PM
Tiger woods 10 looks exactly the same as 09 with the addition of just a few more features and new courses. That's how they suck you in. Then they make another kabillion by offering you two dlc courses during that season. Not impressed.
Plus I own both a PS3 and 360 and tried out the Tigerwoods 10 demo out on both and I swear the 360 version still looks more polished. Those idiots are still porting the 360 version to the ps3. I thought it was gonna be the other way around with the PS3 being the more powerful system being developed on first.
Just goes to show that EA is still catering to the 3fixme as their no.1 platform leaving Sony in the background. Pathetic losers. Sony is soon gonna outsell Microsoft in overall sales and just like the article said, EA has definately missed the boat. Serves them right. I'm all for Sony exclusives anyway. EA among others will never beat the Sony exclusive sports titles like MLB09 The Show in amazingness. That title makes any EASports title look last generation in my opinion..
Last edited by HOODGE on 5/26/2009 4:51:36 PM
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Scarecrow
Tuesday, May 26, 2009 @ 2:15:12 PM
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I've been saying it for years!
Hell, I barely have 2 or 3 games from them.
They're garbage
Freaking Madden Bullsh*t
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Ultimadream
Tuesday, May 26, 2009 @ 2:59:51 PM
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faraga
Tuesday, May 26, 2009 @ 3:19:11 PM
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smileylyon
Tuesday, May 26, 2009 @ 4:24:43 PM
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Geobaldi
Tuesday, May 26, 2009 @ 7:33:32 PM
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Highlander
Tuesday, May 26, 2009 @ 11:29:01 PM
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OriginalSin
Wednesday, May 27, 2009 @ 3:14:32 AM
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Highlander
Wednesday, May 27, 2009 @ 10:08:38 AM
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Geobaldi
Wednesday, May 27, 2009 @ 5:44:08 PM
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iliimaster
Thursday, May 28, 2009 @ 10:31:14 AM
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Random_Steve
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Tuesday, May 26, 2009 @ 11:19:08 AM