Report says Electronic Arts’ better positioned, tired of Wii

A report from Kaufman Bros. just a couple of days ago had signified that Electronic Arts had the most favorable position among the four giant publishers.

As pointed out by Todd Mitchell, a Kaufman Bros. analyst, he believes that Electronic Arts has made the correct investments for the coming cycle and “will ultimately be far better positioned for changes in the industry than its peers.”

Aside from investing in a better foothold in Asia, online distribution, MMO games and the mobile gaming industry through casual games, the microtransaction advocate also saw an increase in shares value last Wednesday for expanding its line up of games for the Nintendo Wii. We really wish the news could end here.

But the report entitled “Video Game Publishers: Valuation and Technical Analysis” shut out the idea that the Wii would let publishers actually benefit from shipping titles to the Nintendo new-gen console. Certain points from Mitchell shows that the publisher could actually not gain enough of a market share foothold than Nintendo is enjoying at the moment.

But because the analysis is too business oriented, we couldn’t help but point out a few flaws in the brainstorming. The fact that the Wii has opened a chance to market to a broader consumer base is true, but stating “the independent publishers may be getting a proportionately smaller slice [of the base]” is particularly ignoring the fact that Wii gamers are asking for better games on the Wii and will buy a third-party title if it’s really, really good.

Other points, such as the Wii’s shorter life cycle than competing consoles, have also ignored the fact that continuing supply problem hasn’t destroyed the demand for the Wii. As a result, the current six million Wiis shipped worldwide still haven’t tapped a large portion of the world demand, giving the Wii an even more extended lifetime than the currently shipped competing consoles.

Overall, the analyst report still remains adamant that “[Kaufman Bros.] are getting tired of what we believe is irrational exuberance about the Wii,” further adding, “We are not sure the publishers will benefit from the Wii.”

Via Seeking Alpha

A report from Kaufman Bros. just a couple of days ago had signified that Electronic Arts had the most favorable position among the four giant publishers.

As pointed out by Todd Mitchell, a Kaufman Bros. analyst, he believes that Electronic Arts has made the correct investments for the coming cycle and “will ultimately be far better positioned for changes in the industry than its peers.”

Aside from investing in a better foothold in Asia, online distribution, MMO games and the mobile gaming industry through casual games, the microtransaction advocate also saw an increase in shares value last Wednesday for expanding its line up of games for the Nintendo Wii. We really wish the news could end here.

But the report entitled “Video Game Publishers: Valuation and Technical Analysis” shut out the idea that the Wii would let publishers actually benefit from shipping titles to the Nintendo new-gen console. Certain points from Mitchell shows that the publisher could actually not gain enough of a market share foothold than Nintendo is enjoying at the moment.

But because the analysis is too business oriented, we couldn’t help but point out a few flaws in the brainstorming. The fact that the Wii has opened a chance to market to a broader consumer base is true, but stating “the independent publishers may be getting a proportionately smaller slice [of the base]” is particularly ignoring the fact that Wii gamers are asking for better games on the Wii and will buy a third-party title if it’s really, really good.

Other points, such as the Wii’s shorter life cycle than competing consoles, have also ignored the fact that continuing supply problem hasn’t destroyed the demand for the Wii. As a result, the current six million Wiis shipped worldwide still haven’t tapped a large portion of the world demand, giving the Wii an even more extended lifetime than the currently shipped competing consoles.

Overall, the analyst report still remains adamant that “[Kaufman Bros.] are getting tired of what we believe is irrational exuberance about the Wii,” further adding, “We are not sure the publishers will benefit from the Wii.”

Via Seeking Alpha