Tuesday, March 22, 2005

Electronic Arts revenue estimates too optimistic

Lots of news came out today. In Bloomberg News, Jonathan Thaw wrote about sudden fall of revenue estimates in Electronic Arts. The game industry giant is not able to meet its projections. Reason behind this shortfall is the lackluster sales of their key titles, which were published for the Christmas season. Looks like the gaming engine ran out of gas before reaching the next quarterly checkpoint. Now we have an exciting play to watch as the situation unfolds. Is the hit towards EA a sign of general stalling of the industry or are competitors still doing strong? Personally I am betting that others are still doing fine and that the dip with EA is on the other hand, related to some public relations problems and on the other to misjudgments based on exceptionally well-sold Christmas season. So, I am guessing that this hasn’t tilted industry off the track, but soon this news is forgotten and the train pushes on. That’s a guess...
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