EA stock slips 6 percent

[UPDATE] Megapublisher's share price stumbles--analysts blame disappointing Medal of Honor reviews; spokesperson says game off to "great start".

Today was a rough day for Electronic Arts on the Nasdaq stock exchange. By the time the closing bell rang, the megapublisher's share price had fallen $1.05, or 5.95 percent, to $16.61. That's only $2.55 from its 52-week low of $14.06, and far below its 52-week high of $21.05.

Medal of Honor's middling reviews may be responsible for EA's one-day stock slide.

Analysts pegged the blame for the sudden dip on less-than-stellar reviews of the company's high-profile shooter, Medal of Honor, which had broken preorder records for the series.

"[EA] shares [are] down because apparently some investors are disappointed by these early reviews," Wedbush Securities analyst Michael Pachter told the Reuters news service. Janco Partners analyst Mike Hickey seconded the notion, saying, "Medal of Honor reviews are not looking good. This can dampen future catalog sales as word of mouth dampens consumer enthusiasm."

That score is also "certainly bugging people," Colin Sebastian of Lazard Capital Markets told the Wall Street Journal. However, Sebastian also said the drop could have resulted from a spike in EA shares leading up to the release of Medal of Honor, which the publisher has been pushing as its own Call of Duty. This sentiment was echoed to the Journal by Eric Handler of MKM Partners.

"I think it's a situation where some of the air is being let out of the balloon following a nice run in the shares and high expectations for the Medal of Honor reboot," explained Handler. The Journal also reported that EA's current share price is well below the median $20 target set by a survey of analysts by the Thomson Reuters news agency.

Check back later today for GameSpot's own review of Medal of Honor, which takes the series out of World War II for the first time. It places gamers in the boots of the shadowy commandos known as Tier 1 Operators, who ran dangerous secret missions during the beginning of the still-ongoing Afghan War.

The game became the subject of controversy when the US Army learned it would allow players to assume the role of the Taliban in its multiplayer mode. More controversy ensued when, two weeks before its release, EA changed the name of the Taliban faction to "opposing force" to sidestep complaints from the armed forces and veterans groups.

[UPDATE] An EA spokesperson offered the following response to analysts' doubts about Medal of Honor. "I can tell you that we're pleased with the North American launch of Medal of Honor and we’re looking forward to the EU launch on 10/15. You may have noticed in yesterday’s press release that the game had the highest pre-orders in the 11-year history of the Medal of Honor franchise. Early sales indicators are very strong. Day 1 retail response has been overwhelmingly positive and the game is off to a great start."

"As in all entertainment formats, critics' scores are highly subjective. Critical scores to Medal of Honor are good, with some as high as 90 on Xbox 360 and PS3. This is an especially big achievement considering Medal of Honor has been dormant for several years. This is the first year in rebooting the franchise. Medal of Honor is part of a larger EA strategy to take share in the shooter category. This is a marathon, not a sprint--yesterday’s Medal of Honor launch represents a step forward in that race."

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173 comments
JTFSNAKE
JTFSNAKE

funny i love this game , it doesnt have as many stupid kids yelling in it , and its a good blend of arcade/ needed skill

onthe_dl
onthe_dl

I dislike that marathon not a sprint comment. I interpret that as: "we made a game that's not quite up to speed with the other competitors. Maybe someday we'll make a game that will be better, at least that's what the plan is"

vinubhai
vinubhai

hey guys anybody having problems with rescue tariq mission stuck at the door.is there any update comingsoon.

disposition000
disposition000

"You may have noticed in yesterday's press release that the game had the highest pre-orders in the 11-year history of the Medal of Honor franchise." That doesn't mean anything. I've been playing games since about 1986 and pre-ordering was never as big as it is now. This new "MoH" was probably the only one in the whole series that anyone cared enough about to bother pre-ordering. And that's based on the millions EA spent on marketing (millions they should've been spending on a longer, more involved campaign). Nobody (and by nobody I mean not enough people to matter) pre-ordered the first MoH because it was a new property. Turns out it was amazing and worth a pre-order. But you can't say new MoH had the highest pre-orders in the series because what you are comparing it to is the other, less successful MoH titles. Saying MoH had more preorders than Medal of Honor: Airborne isn't a compliment and doesn't mean sh*t. That, and like I said, the marketing for this game was off the wall. Everyone including myself was psyched, only to be let down by the shortest single player campaign I've ever played. Oh and by the way, how much you wanna bet that the whole "Taliban" controversy was also part of the marketing gimmick. "Get this game on the news, THEN people will buy it. Just like Call of Duty." EA, come up with your own f**king ideas, stop stealing from everyone, including your customers.

disposition000
disposition000

"However, Sebastian also said the drop could have resulted from a spike in EA shares leading up to the release of Medal of Honor, which the publisher has been pushing as its own Call of Duty." There's your first problem. Medal of Honor ISN'T Call of Duty, though it used to be (think Allied Assault). Maybe if EA had tried to make their own, original game rather then to poorly copy CoD's Modern Warfare series they wouldn't being seeing a decline in stock.

JackHoleFace00
JackHoleFace00

This game looks pretty fun but for me it has two huge things going against it (one of which has nothing to do with reviews): 1) The campaign length. Apparently it can be beat in 4 hours. 4 hours?! Why buy a game I can finish in a night. 2) The multiplayer looks ok... but BF:BC 2 looks much better... and that game is cheaper right now. Not to mention COD: MW 2 has excellent MP. So while both the single and MP parts of the game look solid, they just don't look up to par with the best. P.S. You guys see the YouTube homepage takeover for COD: BO (just realized how funny that sounds) on the DAY that MOH was launched? That's just meeaan Activision!

OGKNav
OGKNav

I don't think "buying1999" couldv'e fanboy'd any harder than that.

buying1999
buying1999

I don't blame stockholders for being upset. I mean EA chose to have some of its games to have ps3 as the lead development platform. I mean talk about a stupid decision. Lead design on the LAST PLACE console. Yeah that makes perfect since. Powwa of da cell...and declining stock..goes well together..now gotta go. My Reach match is about to start 5, 4, 3, 2, ....

Slayerduckie
Slayerduckie

Slashcare. Back to playing bad company 2.

GordonFrohman11
GordonFrohman11

EA should try and do its own thing rather then attempting to copy Activision. Battlefield is awesome so why try to create another Call of Duty?

Sgthombre
Sgthombre

I love how the guys happy about breaking the pre-order record for the series, while Black Ops. could break the all time pre-order record.

SDSkarface
SDSkarface

LOL well MoH tanked.. and the next Cod is by Treyarch not Infinity Ward, so i guess that means Bad Company 2 stays king! and Infinity Wards next game is some kind of space marine shooter,so as far as Military shooters go its Bad Company 2 FTW.

MEDzZ3RO
MEDzZ3RO

@education Yes it will and has changed in the past.Cod did just that with the original,making a game near identical to MoH.When Cod 1 came out MoH was strong and it aswell as Half-Life were labeled as the kings of fps. On a side note,WaW online was far more balanced then CoD4s and offered alot more (Zombies,patches,DLCs),CoD4 and Infinity Ward just got the hype because it wasn't set in WW2. Cod sells well but in terms of how good the franchises games are it's not the king of the fps genre.Half Life is.Just look at Gamerankings.

Alkpaz
Alkpaz

@education: Funny coming from someone sportin a Halo avatar.

Badokk
Badokk

i've play MW2 its good and fun to play. but after about a few days playing i feel it the same stuff happen every game.. i played the MOH pc beta and it was epic the fact that u step out of cover with out smoke cover i loved it. sniper system was the best around none off this bull c*** jumping around in mid air shooting some its funny for about 5 times, MOH has ture sniper system. The grandes were abit rubbish but there damage i felt was realist. Poeple will cry saying that the guns are too powerfull but get what guys its like that in REAL life. i will buy this game no matter what people say enjoy

education
education

Face it. Call of duty is king of the fps genre. That will not change because the competition tries make a similar game that ends up being compared to greatness and failing. If they keep failing and learning from the community about what to fix then that will be great! I want another quality shooter to play when I need a break from mw2. But it has to be a great game. I tried halo and its still the same game after all these years. Any game with shields or body armor is just stupid. Thats just my opinion. I'm ready for black ops now but i hope the online is better than world at war which i skipped the online aspect for and stuck with mw 1. Happy gaming everyone!

kintama88
kintama88

a bunch of you people are bad mouthing medal of honor without even trying it. it really isnt that bad. i just got it with store credit at best buy and it's a pretty good game. Most of the cons mentioned from Gamespot's review can be applicable to many other highly rated FPS games (eg. i dont see this game being more linear than MW2's campaign) but i do agree with the lack of innovation and the dumb witted AI. I've played both MW2 and Bad company 2 A LOT. Though it is a matter of personal preference, most people who's played both extensively agrees that MW2's multiplayer can't compare to BC2. This is just a temporary slump for EA. They have so many great titles coming out: Dragon age 2, Crysis 2, Dead Space, etc.

scorchingitup
scorchingitup

really it's as simple as this get 2015 to do the next medal of honor and that game should be good. although i haven't played this yet.

SicklySunStorm
SicklySunStorm

6% is nothing..... if anything it represents an opportunity to buy for a short-mid term profit.

stakex007
stakex007

This is what happens when you do things like take a solid game you already made (Bad Company 2), change it around a little bit and then try to sell it again as a totally new game for $60 less then a year later (Medal of Honor). I loved the old MoH games, but man I have no idea what DICE was thinking here since MOH is just a stripped down version of Bad Company 2.

8dillinger8
8dillinger8

well they should have put more effort on M.O.H it had great potential!

Kid2812
Kid2812

I played Battlefield: bad company 2, Medal of honor (classic), Modern warfare 1 & 2 and World At War and i think that if EA can make Medal of Honor better then i think that EA can take the FPS title from Activision but i just hope that Black Ops & Bad Company vietnam are good :)

lazycomplife
lazycomplife

My favorite part is when it said it broke preorder records for the series. I lawl'd

ReD_FeLony
ReD_FeLony

@education, why have u played all of them, is a real stupid question, maybe he's a hockey fan?? I'm a football fan and I play both PES and FIFA every single year they come out, then I sell the crap one after playin both for a month

education
education

People who say you need no skill to play call of duty must actually have no skill. The people with no skill are the ones who go 2 - 25 while saying battlefield is better. I bet no one plays battlefield saying mw2 is better. Thats because we're too busy playing mw2. meh stop complaining and whining.

education
education

One more thing tainted lynx... if every ea nhl game sucked then why have u played all of them. I tried nhl 2k7 and was thought it was terrible. I havent even looked at one since. Maybe the 2k series has gotten better but ill never know. I dont play games that suck.

education
education

First of all tainted lynx you must just be bad mouthing nhl 11 because youre on the bash EA bandwagon. You obviously havent played it. If you actually played nhl 11 10 09 08 etc you would notice an improvement each year with one exception. 10 wasnt that much of an upgrade. But 11 is amazing the passing "IS" perfect. I guess you dont have the skills required for the more precise passing. Having the ability to pass precisely with the velocity of your choice is great in my opinion. Maybe youre stuck in the just aim in a general direction and it will automatically go to a player who might even be off screen etc. And the hits are brutally awesome! Anyways moving on to medal of honor. I was a bit excited about this game leading up to its launch. I was even considering it to be a purchase but it seems that the game was all hype. I'm surprised gamespot actually gave it a 7.5. Isually ign has the higher rating but not this time. As for those of you who hate EA... all i ask is why? What difference does it make who publishes or develops a game. As a gamer all i care about is playing great games. So yeah ill pass on medal of honor and continue playing modern warfare 2.

Giga_Surfer
Giga_Surfer

Actually, I'm enjoying seeing this happen, EA has become so big and over confident, that give them selfs the luxury of screwing customers over, then they complain that ppl turn to gaming piracy, iv bought my good amount of EA games, both on the PS3 and the PC, and iv seen EA ruin great Franchises like NFS and some others, EA games are decaying, proportional to how much bigger EA gets, EA its all show and no go, iv stopped pre-ordering EA games a while ago, and simply waiting for their reviews 1st and then annalise if i really want that game. Its no wounder that in a good while most of the best games in the market, do not belong to EA, mainly because their games fell like they are simply mass produced. You know what they say, the bigger they are, the harder they fall.

nazgul9910
nazgul9910

I also really don't like EA, they rarely have their content on the Xbox Marketplace, you always have a store or something similar in the game menus that where you have to buy your DLC, which sometimes turns into a hassle. They also never have their servers prepared at the release of new games (i.e. Bad Company 2 and MoH), yesterday you had to be extremely lucky to get into a game with one of your friends.

tainted_lynx
tainted_lynx

@ Heshertonfist Considering I've unlocked all the achievements, I'm pretty sure I've played it. After all, I have played every single EA hockey game since '93, so I know quite a bit about EA's hockey games. You claim NHL 11 is "way better" than NHL 10 which is laughable. It's marginally worse than NHL 10. Have YOU even played it yet? NHL 11 is slow, clumsy passing, weak hitting and inconsistent gameplay. Of course, you can adjust the settings to speed the game play up, but passing is wildly inconsistent and makes for 3 periods of frustration. The so called new physicals engine is a joke. There aren't enough physics in it to call it a "new" physics engine. Most of it is just a repack from NHL 10. There are a few tweaks in the gameplay, but that's it. It's pretty much a roster update with some tweaks and gimmicks. Nothing new, just worse than last year. EA just can't make a hockey game. Well, I should rephrase that. They can make a hockey game, just not a good one. EA has a long line of hockey games that just are not good hockey games. Except for maybe 94.

snarl2
snarl2

This is my first MoH, and I only play the multiplayer, and to me its pretty solid!

Heshertonfist
Heshertonfist

@tainted_lynx If it were a simple roster update (if they just added a handful of new players) then sure, I'd agree with the whole roster issue. But it's a deep and far more realistic update than has been seen in previous years. And you can hardly call the new physics engine "a few tweaks in gameplay" because it's completely new and gives the game a less arcade-like feeling. Have you even played it yet?

kiopta1
kiopta1

The moronic reviews did hurt EA. As a Vet I found this MOH game (and FPS in general) to be the best and most acurate. I truelly appreciate how they made the action and environment as acurate as possble/ Far better than the hollywood over shock done in other shooters (MW2 and the airport is a good example). FPS is oversaturated..lets have more great RPGs :)

blackace
blackace

There are already too many FPS games out on the market. We didn't even need MoH or Black Ops right now. The negative reviews, complaints from the U.S. Army and the delay of NBA Elite all contributed to stocks dropping I think. I truly believe that the developers of NBA Elite got an early copy of NBA 2K11 and was like (Ooohhh @#$%!!) and decided to their game. NBA 2K11 is the only game I can play and then can't wait for the game is over so I can see the highlights, picture and all the other goodies. The presentation is over the top.

Shadow_th
Shadow_th

The market is already overly saturated with FPS with this nowadays war wannabe realistic background. It's the new WWII. Then you have another Call of Duty coming, whatever Respawn is going to do that might be another FPS and so on. Just look at Duke Nukem Forever, a decade ago it would be another similar FPS, today it can be the most fresh first person shooter experience in some time.

QuiCkz_Alex
QuiCkz_Alex

Medal of Honor is back in a big way! Forget about all the controversy surrounding the Taliban. This game does nothing to offend anyone fighting in today’s war. Danger Close came dangerously close to giving you an incredibly real experience behind the eyes and weapons of some of our heroes. If that’s what these guys are capable of then I fear for the “Opposing Forces” out there. I’ve been wanting a game with a campaign that was not just a spinoff of its multiplayer. Medal of Honor managed to give me an experience worth repeating. I hope all of the controversy surrounding the Taliban doesn’t deter any military person (active or otherwise) from playing this game because Danger Close paid a respectful tribute to those people with its campaign.

bumbum1991
bumbum1991

EA could have made a better MOH if they spent more time on it. But it's a signal that more MOH will be developed and yeah, it's not dead. I love FPS so I love both EA and Activision! :)

Recarnator
Recarnator

EA, This is what you get when you side with PS3. I kid I kid :)

deathwish026
deathwish026

lol people only buy cod because it requires NO SKILL at all. this will be different.

MarcJL31
MarcJL31

I dont think MOH is a bad game. I just wish that EALU did the whole game. The campaign was great. And like their feel better then DICE's. Just seemed graphically better and control more polished and precise. Not to mention that the multi still have problems from the Beta. I sure it will get patched up as it was the same for BFBC. I am looking forward to Crysis 2 though.

JamTrini
JamTrini

Maybe it was also due to EA revamping NBA Live into Elite, which was disappointing to say the least. So much so that they pushed it back to release it next year when the actual NBA season will be over. So they definitely lost huge sales there.

diesil
diesil

maybe they will stop making cod rip offs after this one...wait thats it say on the box (EA)...nevermind :(

Bortson
Bortson

Its probably a mixture of both. Shares are always on the uptick before a big release as people slow to the party want to get in on the potential profits. Then any bad news scares those same people off, and the price gets back to what it should be. This happens all the time. I think it was last year Ubisoft announced they were delaying several games, stock prices plummeted. The only thing that matters is when the sales numbers come in for the quarter that includes the holiday shopping season

Ryuketsu2043
Ryuketsu2043

Even with bad reviews..releasing this a few weeks after reach and a few weeks before black ops was a very very bad business idea in the first place..

snake8304
snake8304

ganesh69:you're right dude, as i say before THIS GAME IS A WELL ADVERTISED PIECE OF CRAP.

gam3reclypso
gam3reclypso

the new Medal of Honor is in my opinion is a good game, but it can't measure to the Black Ops hype and goodies, i don't think that the fps market is saturated, there are a lot of fps games, but some people just enjoy this genre more than others, so EA lost some percents, that doesn't mean that they will die, and stop comparing Black Ops to Medal of Honor, some people will just be MOH fans, some just COD fans

ChiefFreeman
ChiefFreeman

It's amazing how big video games have gotten in the last decade. Even investors who don't have an interest in ames themselves are watching review scores closely now to determine when to buy or dump their stock.