I can't feel sorry for EA, they are turning into MS with there monopolization. Letting developers create games that THEY created is why we like them. Twisted metal sucked when it went into the wrong hands, and that's what's happening with some EA titles that they keep buying out. Don't get too greedy b/c the public will backfire, we are gamers not lemmings and will not buy your rehashed crap like Tony Hawk and such. This is like what their 7'th title?? Can I get an amen? Lurker Creep VERY GOOD POINT AMEN TO YOU TOO BROTHER, EA is all about one face, not diversity. They tried to buy out UBISOFT and they bought out sega titles, there is no more DIVERSITY quit buying their crap so other publisher can have a chanse and not get bought out. What are we Microsoft?? hehe, i know that was a cheap shot.
Analysts lower EA, Activision projections
Lowered expectations for big-time publishers, but long-term outlook remains favorable.
It's been a rough holiday season for gaming so far, with sales in September, October, and November failing to live up to numbers posted in 2004. And while Piper Jaffray analysts Anthony Gikas and Stephanie Wissink have twice reduced their annual revenue estimates over the past few months for the game industry as a whole, until today, they hadn't revised projections on specific stocks to match.
The two lowered their projected earnings numbers for Electronic Arts and Activision in both the short and long term today, but said both companies remained attractive in long-term investments.
They reduced their Electronic Arts sales projections for the December quarter from $1.52 billion to $1.45 billion, and likewise lowered the associated earnings per-share estimate from $1.29 to $1.20. In the long term, the company reduced its peak earnings per-share estimate from $3.50 to $3.20 in fiscal year 2010.
Activision's long-term earnings per-share projection of $1.05 for FY10 beats out EA's proportionate to stock price, but the near-term numbers are still expected to slip. For the December quarter, Gikas and Wissink downgraded their sales expectations for the company from $820 million to $780 million, with earnings per share down from $0.55 to $0.50.
If they miss their previous marks this holiday season, Activision and EA will likely have company. While Piper Jaffray previously pegged an 8 percent growth rate for the industry, the firm is now expecting revenues to be up a more modest 3 percent. Gikas and Wissink blamed the poor sales in part on the transition between console generations.
"In our opinion, more consumers are waiting for next-generation systems than previously thought and gamers view industry-wide hardware and software products as overpriced," they wrote. They also pointed out that EA "has been early to address this concern," though it's unclear to what exactly the pair is referring.
Hot Stories
Newsmakers
-
Preowned games on Xbox One decided by publisher
Microsoft confirms that it won't charge any fees for any titles eligible for resale. Full Story
- Posted Jun 6, 2013 4:00 pm PT
-
Microsoft confirms required 24-hour check-in for Xbox One
Playing Xbox One games on somebody else's console will also require a check-in every hour. Full Story
- Posted Jun 6, 2013 3:41 pm PT
Featured Stories
-
PlayStation 4 will cost $399
Sony confirms a $399/€399/£349 price for the PlayStation 4 hardware, $100 cheaper than Microsoft's Xbox One. Full Story
- Posted Jun 10, 2013 11:19 pm PT
-
New Halo coming to Xbox One; runs at 60fps
Will be coming in 2014. Full Story
- Posted Jun 10, 2013 11:11 am PT
-
Del Toro calls BioShock Infinite a 'mindf*ck'
Pan's Labyrinth director praises Ken Levine and Irrational Games for latest BioShock, says he would consider large-scale Pacific Rim game "God willing." Full Story
- Posted Jun 13, 2013 8:53 am PT
-
Microsoft: Xbox One will be leading product people love and embrace
Xbox boss Don Mattrick believes concerns over connectivity are overblown, recommends Xbox 360 for those without an Internet connection. Full Story
- Posted Jun 11, 2013 5:52 pm PT
-
New Mirror's Edge is open-world
EA Labels boss Frank Gibeau describes new project as "open-world action adventure game." Full Story
- Posted Jun 12, 2013 10:45 am PT
Related Game
Need for Speed Most Wanted
- Publisher(s): Electronic Arts
- Developer(s): EA Canada
- Genre: Driving
- Release:
- ESRB: T





