Few video games released causes Electronic Arts’ losses to widen
Electronic Arts (EA), the world’s largest video games publisher has recently reported that it has experienced a wider fourth-quarter loss. EA has also noted that for this period, it may miss analysts’ estimates due to fewer video games released.
Bloomberg reports that net loss widened from US$ 25 million, or 8 cents a share, from US$ 16 million, or 5 cents a share a year earlier. This quarter, the company sees a net loss of 56 cents to 66 cents a share on sales of US$ 300 million to US$ 360 million. Excluding some costs, the company predicts a loss of 34 cents to 40 cents a share.
Wedbush Morgan analyst Michael Pachter notes that the company has been slower when it comes to releasing video games in the recent months because some of last year’s titles, including the much maligned Superman Returns, failed to impress critics. Pachter expounds:
Superman Returns’ for the PlayStation 2 had an average score of 46 out of a possible 100 last year on the Web site Metacritic.com, which compiles ratings from other Web sites. The company’s target is to score in the 80s with every game…
The new Harry Potter title will be released in July, while the new Medal of Honor title is scheduled for August. We’ll see then if Electronic Arts’ slower strategy pays off.
Electronic Arts (EA), the world’s largest video games publisher has recently reported that it has experienced a wider fourth-quarter loss. EA has also noted that for this period, it may miss analysts’ estimates due to fewer video games released.
Bloomberg reports that net loss widened from US$ 25 million, or 8 cents a share, from US$ 16 million, or 5 cents a share a year earlier. This quarter, the company sees a net loss of 56 cents to 66 cents a share on sales of US$ 300 million to US$ 360 million. Excluding some costs, the company predicts a loss of 34 cents to 40 cents a share.
Wedbush Morgan analyst Michael Pachter notes that the company has been slower when it comes to releasing video games in the recent months because some of last year’s titles, including the much maligned Superman Returns, failed to impress critics. Pachter expounds:
Superman Returns’ for the PlayStation 2 had an average score of 46 out of a possible 100 last year on the Web site Metacritic.com, which compiles ratings from other Web sites. The company’s target is to score in the 80s with every game…
The new Harry Potter title will be released in July, while the new Medal of Honor title is scheduled for August. We’ll see then if Electronic Arts’ slower strategy pays off.
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