Analyst: PS2 slowly dying and EA Sports juggernauts underperforming

by Alexander Sliwinski { Oct 20th 2007 at 4:00PM }

With the NPD numbers out, it's time for analysts to bring on some post-game analysis. Deutsche Bank's Jeetil Patel says that the PS2 business (although strong) is slowing down fast and EA Sports' mega-franchises Madden and NCAA Football are underperforming.

According to Patel's analysis, the PS2 sales fell 47% year-to-year last month, the month prior it was only 33%. He says that although the decline was "inevitable," it's still not clear if consumers are transitioning to newer hardware or "low-end consumers" are buying less. Patel says, "Needless to say, with tougher comps ahead for PS2 software sales, we think that the PS2 may finally be on its way out of the industry for good."

As for EA, this year's iterations of Madden and NCAA Football underperformed. Madden '08 sold only 619,000 units compared to the 1.19 million at the same time last year -- a 48% decline. NCAA Football dropped 23% from 147K units sold to 113K year-to-year. Although, Skate compensated the decline a bit selling 174K units. Patel says the low sales for EA is a concern given the "competitively-speaking" light month heading into the competitively-heavy holiday season. He says EA may potentially "reduce software pricing on these titles to stimulate sales volumes." Translation: Don't buy Madden now and it may drop its price.

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Reader Comments (Page 1 of 2)

Jeff @ Oct 20th 2007 4:07PM

I don't need a translation to know not to buy Madden.

Nomi @ Oct 20th 2007 5:47PM

touche`

Ethan @ Oct 20th 2007 6:56PM

OMGOSH! Touché is for accepting a clever riposte against your person.

Maybe this justifies Sony dropping backwards compatibility, ps2 still has the most readily available great games on the market, but developers have probably squeezed all the potential from the device. I'd like the market to move onwards, preferably to a similarly cheap and expansive bunch of Wii games. And all bad EA news is good general person news.

ssuk @ Oct 21st 2007 8:37AM

Alt Gr + e = é
Alt + Ctrl + e = é

harrison_schaerr @ Oct 21st 2007 11:29PM

lol... well said jeff, well said.

Mr Khan @ Oct 20th 2007 4:11PM

It's probably a factor of both, low-end consumers may have been hit hardest by the whole subprime bust, and the PS2's death has been inevitable

As for EA, maybe the tide is finally turning

Judd @ Oct 20th 2007 4:14PM

Wow, that is a huge drop. I mean the biggest publisher in the world's flagship title, dropped its sales by half.

gonk @ Oct 20th 2007 4:14PM

with madden, even if you like it a lot, you should only buy a new one every couple of years for new features

probably the stories about ps3 madden having low FPS didn't help sales either

i'm sure sales for maddens and ps2s will pick up for xmas, but then ps2's will free-fall after the holidays

jason w @ Oct 20th 2007 4:30PM

Why would you buy this years Madden at 60 bucks when last years is $10.00 and its the same game. I bought 2Ks but it looks like i was one of the only ones. I love it. Not going to trade it in any time soon.

Kangstarr @ Oct 20th 2007 4:32PM

Good. Maybe they'll actually make an interesting Madden game instead of re-hashing the same crap every year. It's hard to justify spending $60 dollars on an updated roster and 1 or 2 new features and it finally looks like the public is too.

ColossalHat @ Oct 20th 2007 4:39PM

I wish that headline had EA and PS2 switched around...

Sam @ Oct 20th 2007 4:48PM

No wonder peter moore was so desperate to make madden a success in europe

plyx @ Oct 20th 2007 5:02PM

I knew it, video games are just a fad.

dave @ Oct 20th 2007 5:11PM

I mean come on guys the title was a mistake. It was ment to say "EA games slowly dying, millions of gamers celebrate.

Shagittarius @ Oct 20th 2007 5:20PM

EA could be in real trouble now. I was expecting its sales of its main franchises to outweigh the losses its going to take for its Wii division. When EA finally sees that Wii's attach rate is so bad its going to be scrambling to come up with a way to make some cash.

For EAs own good it should bail on the Wii right now before they spend too much.

Mr Khan @ Oct 20th 2007 5:29PM

You have that backwards

It is, out of their own mouths, their over-investment in PS360 that's been hindering them

They said it, although you could be right that that division's losing money. Boogie flopped, but SSX did pretty well

finnith @ Oct 20th 2007 5:40PM

I don't really love the Wii

But you're comment is wrong. Rather than bail out on the Wii altogether, EA should invest more of their attention on the Wii and try to actually make something revolutionary.

I do seem like an optimist in that sentence. The best thing I can see happening is them releasing another run of the mill Madden game.

Clack @ Oct 20th 2007 8:16PM

"They said it, although you could be right that that division's losing money. Boogie flopped, but SSX did pretty well"

Probably because Boogie wasn't very good while SSX was a pretty typical SSX game (rockin').

ukickmydog (NDF - Earth) @ Oct 21st 2007 12:08AM

sorry attempt at bringing the wii into this

just stop writing, you just get whited out like a blizzard

MariosInferno @ Oct 22nd 2007 7:57AM

Wow, another moron that doesn't understand attach rate.

ATTACH RATES DON'T MEAN SHIT WHEN YOUR CONSOLE IS SELLING LIKE GANG-BUSTERS...GO HOME.

Arcturus @ Oct 20th 2007 5:35PM

Is that a drop from 1.19M to 619K only for the PS2 version of Madden? I'm pretty sure that overall sales across all platforms was much, much higher... I think this only shows that the market is moving on from the PS2, not that EA is underperforming.

phattie @ Oct 20th 2007 5:37PM

Where is this moron analyst getting his stats? Sales for August alone (via Kataku)...

01. Madden NFL 08 (Xbox 360) - 896,600
02. Madden NFL 08 (PS2) - 643,600
03. BioShock (Xbox 360) - 490,900
04. Madden NFL 08 (PS3) - 336,200
05. Wii Play (Wii) - 256,800
06. Metroid Prime 3: Corruption (Wii) - 218,100
07. Mario Strikers Charged (Wii) - 147,400
08. Guitar Hero II (PS2) - 145,400
09. Mario Party 8 (Wii) - 138,300
10. Guitar Hero Encore: Rocks the 80s (PS2) - 127,100

11. Madden NFL 08 (Wii)
12. Madden NFL 08 (Xbox)
13. Brain Age 2: More Training In Minutes A Day (DS)
14. Two Worlds (Xbox 360)
15. Pokemon Diamond (DS)

Arcturus @ Oct 20th 2007 6:02PM

phattie: Exactly my point. ;) The PS2 numbers are close to what this article is saying. I'm pretty sure they're talking about how Madden sales on the PS2 are about half... which, honestly, isn't really a surprise to anyone...

dotun.o @ Oct 20th 2007 5:43PM

Heh, did anyone else catch that oxymoron: "Slowing down fast"?

LaughingTarget @ Oct 20th 2007 6:52PM

How about, "A rapid rate of negative acceleration"?

Batzarro @ Oct 20th 2007 5:43PM

"Damn! Now I won't be able to buy that gold haircomb!"

Sam @ Oct 20th 2007 5:56PM

what I never understood was the need to update Madden or FIFA or NBA every year with a new box, new game modes and new price. Now that there's the emergence of Xbox LIVE and Playstation's Network(...), couldn't they just come out with a release every two years or so? I mean, come out with Madden '07 for example, and then when the new lineup/draft comes, they release an update or some sort of DLC (downloadable content for those that don't know) for a low price. Or, if they come up with a new game mode, make that DLC and charge a low price if they want it. I mean, it makes more sense from the consumer's point of view, and frees up developers from having to make a new game every single year. If less developers were concerned with these sports games at EA, then maybe, just maybe, they could be put to work on some original IPs. Just a thought.

ssuk @ Oct 21st 2007 8:42AM

I doubt a company who makes a lot of money off these games are suddenly going to change their tactic to make less money... Then again, this is EA we're talking about.

Sam @ Oct 20th 2007 5:58PM

Also, with regards to the Wii and PS2, they could make incremental updates and sell it in a new box, but at a much lower price ($30-40). Eventually, the PS2 has got to go, and Sony has also got a make a (real) effort to have the PS3 want to be developed on.

playwhutyalike @ Oct 20th 2007 6:02PM

Shhhh! Don't say "Wii" so loud in here unless you are bashing it. Phattie and Shags are listening.

Rubang B (NDF - Heart) @ Oct 20th 2007 8:00PM

Hell yeah, the Metroid's back, and now with a hat. ::props::

playwhutyalike @ Oct 20th 2007 10:20PM

Thanks Rubang, I believe the Roid' is here to stay.

Arcturus @ Oct 20th 2007 6:03PM

Sam: EA releases a new one every year because they can sell tons of them and make money. And really, what else does EA want from Madden besides that?

phattie @ Oct 20th 2007 6:15PM

They are most likely required to put out a Madden game every year as part of their exclusivity deal with the NFL... the league wouldnt be happen if the period between launches for NFL games was 24 months. Much like the video game, the league is based on hype and marketing rather than substance.

Mr Khan @ Oct 20th 2007 6:20PM

I *agree* with Phattie for once

Their contract with the NFL creates most of the biggest problems with Madden. Make 1 game a year, make virtually the same thing, release across all platforms ad nauseum

If they tried to make it better, they would lose the exclusivity, then it would get a lot better indeed (or just get into monopoly with some other company)

LaughingTarget @ Oct 20th 2007 6:55PM

phattie isn't exactly correct. The end-result is the same with that theory, but EA put Madden out once per year since 1991 (Madden '92) I think and they didn't have an exclusive deal until 2006. They'd put the same game out once a year regardless.

playwhutyalike @ Oct 20th 2007 6:11PM

I agree with Arcturus. It's all about money. What makes Madden better this year than last year? I have no clue because I've never gotten into the Madden games.

ChillyX @ Oct 21st 2007 3:29PM

How about EA stop putting out the SAME Games every year? lol. And as for the ps2 dying in sales, its because 90% of america owns one. I say they make as many gr8 games as they can for people to buy instead of abandoning the system for the new overpriced ps3 that has NO games lol. I've never seen the point in dismissing a system that still has decent graphics and everyone has. Seems they'd be trying to make new gr8 games and make money on the software.

Arcturus @ Oct 20th 2007 6:19PM

I doubt the NFL cares too much what EA does with the license after they got their $1 billion. EA has been making a new NFL game every year since, what, the late 80s? I doubt the exclusivity agreement has anything to do with it.

n2 @ Oct 20th 2007 6:26PM

When I first read this article, I thought maybe they were talking about Madden across all platforms, but I knew that number would be over a million copies, so then I realized these numbers are for the PS2 version only.

Well, duh! Of course those sales numbers are in decline from prior years.

And if you think it's simply people not buying PS2 software, I can help clarify just from my own perspective. I was a PS2 owner. Had been a huge Sony fan for many years. But, I've since given away my PS2 and moved on. The PS3 was too expensive, so I'm not a Sony console owner anymore.

Go back to Madden, I'm really shocked the numbers are a high as they are, considering it's basically the same game year after year. It's inevitable people will get tired of it at some point.

AmgKmpsR @ Oct 20th 2007 7:26PM

Everyone is just figuring out that you shouldn't buygames from EA, all their glitching and constant patching is absolutely ridiculous!

ColossalHat @ Oct 20th 2007 8:12PM

You'd think having made the same game about 15 times EA would have worked out the kinks in those sports games.

gonk @ Oct 20th 2007 9:27PM

i think they leave them in on purpose, to get people to buy next year's version, hoping it's not as buggy

i mean look at tiger woods this year, i heard about bugs all over the place with it, that's why I didn't buy it

Sam @ Oct 20th 2007 6:56PM

Ok, to everyone above, I understand the exclusivity agreements and the fact that the NFL and some parts of EA are just in it just to milk the cash cow a little bit more every year. From an business standpoint, my argument's null and void. From a consumer standpoint, it makes sense. Maybe with Moore in control of EA Sports, he could make something like this happen, because, think about it, how much talent is wasted by making these same exact games, year after year after year? Quite a bit, and to be honest, I think thats ridiculous. EA would probably (see: probably) be seen in a better light if they didn't ship redundant sports games every year with only microscopic changes to the basic gameplay. Sure it makes them a ton of cash, but it also waste's valuble talent at their own company, stifles the creation of original IPs and burns a hole in the pocket of consumers. Have it your way EA and NFL, but substance is better than hype.

jovin6 @ Oct 20th 2007 9:42PM

Lol. Cause Moore understands nothing about revenue figures and the bottom line.

Listen to the hilarity of what you're saying. EA is a consumer goods company. They understand plenty about consumers, and, in fact, the figures seem to suggest that roughly 2 million consumers bought Madden 08. Explain how it is that they aren't doing what consumers demand, because the flow of finances seems to suggest otherwise.