EA To Triple Earnings By 2009?
Despite a lower-than-predicted sales total for their first PS3 games thus far, EA is still thinking big for the future.
The world's largest video game publisher is not only anticipating growth - like most successful companies strive for - they're looking at some serious skyrocketing within the next couple of years. In fact, if they keep it up, we could be looking at the possibility of a publisher monopoly, which may or may not annoy industry analysts.
As of now, EA hopes to have its name slapped on one in every five games released for the PS3, Xbox 360, and Wii, which is one hell of an ambitious endeavor. According to Barron's, if this actually occurs, EA's earnings could be "triple that of the current fiscal year"...as if the current year is anything to be disappointed about. Triple the earnings in a mere two years? Yeah, that's significant.
For this year alone, industry analyst Michael Pachter thinks EA's stock price will soar, increasing by $15 per share over the next year to hit $65/share. Considering just how big EA is already, and all that recent talk about one standardized console at some point, perhaps it's all suggestive of a much more "focused" future...? Which isn't to say that's a future we look forward to; just throwing that out there.
2/19/2007 Ben Dutka