Analyst Calls EA Situation "Troubling"
A Deutsche Camber analyst has said that despite appearances, Electronic Arts' dominance in the industry is coming low siege, lead to a "troubling" situation at the publication giant.
In a report posted on GameDaily, analyst Jeetil Patel said effect food market part for EA on a standalone basis had dropped to 14.3 percent for the month of December, but that the mooring was masked away Rock Band likewise as the archeozoic release of NCAA Border district Rabidness 2008. That title, which EA elected to ship in December rather than in January as it had done the previous year, added $7.5 million to the company's December gross sales.
He besides pointed out that two popular EA Sports franchises were as wel experiencing sales declines, with Craze 08 falling 5 pct to 1.86 million units from 1.96 million units the preceding twelvemonth, and NCAA Football 2008 selling 352,000 units compared to 423,000 sold in December 2006, a 17 percent decline. The slide comes despite a reduction in the average marketing price of the games, which adage Madden 08 down nine percent to $40.34 and NCAA Football 2008 disregard by 12 percent to $36.39.
"We think the proportional underperformance of Physical science Arts' two well-proved titles represent a major concern for two reasons. First, if the company's proven and well-known franchises (with exclusivity on its broadside) are struggling to grow YoY [twelvemonth finished twelvemonth], it does beg the interview whether the company's newer titles wish be prosperous during a very competing retail environment (with blockbuster titles from the likes of Activision, Ubisoft, Microsoft, Sony and of course Nintendo). Irregular, should these unaccented sell-through trends continue, we think that EA may wait to shorten computer software pricing on these titles to stimulate gross revenue volumes," Patel said.
"With marketplace contribution losses and different of the company's dominant franchises likewise shrinking, we think investors are clearly giving Ea far too much credit to its scale and product quality when its industry leaders position Crataegus laevigata be under attack."
https://www.escapistmagazine.com/analyst-calls-ea-situation-troubling/
Source: https://www.escapistmagazine.com/analyst-calls-ea-situation-troubling/