EA will announce its second-quarter results on Tuesday and, according to an average estimate by analysts, is expected to report a loss of $111 million. Forbes reports EA had a $132 million loss the same quarter last year. Not that EA is hurting for customers, revenues are estimated to be up about $200 million this quarter despite the overall loss.
This second-quarter loss isn't surprising as EA -- along with almost every other publisher -- "backloads" its games to cause a hellish purchasing climate during the holiday season. Analysts are uppity with EA because this is the first quarter the company hasn't provided them with guidance, causing analysts to have a huge spread on the quarterly financial expectations. EA is also waiting for the results of an FTC investigation into its buyout of Take-Two. There's probably going to be a lot more cloak and dagger as the dethroned publishing king tries to crawl its way back to #1.
Reader Comments (6)
Posted: Jul 28th 2008 12:10PM MrHashbrown said
No wonder they're stalking Take-Two
Posted: Jul 28th 2008 12:26PM (Unverified) said
They have some really good looking games coming out. That should help
Posted: Jul 28th 2008 12:30PM ScottG13 said
In alot of eyes, EA seems to have "won" E3 by impressing with a lot of new IPs and terrific support of existing franchises.
EA is investing its Madden money in places that are good for the industry. Hell, they allowed Mercenaries 2 to be delayed by almost a year. That alone gets huge points from me.
EA is investing its Madden money in places that are good for the industry. Hell, they allowed Mercenaries 2 to be delayed by almost a year. That alone gets huge points from me.
Posted: Jul 28th 2008 12:31PM Snipermike said
Well looks like every NFL team is going to be DLC in madden this year
Posted: Jul 28th 2008 12:51PM (Unverified) said
It still mystifies me why an entertainment medium as big as video games would actively AVOID releasing during summer. Summer movies do exceedingly well. Most people under 20 have LOTS of free time during the summer (at least, more than they do in late fall). Sure, Consumermas is huge, but I think we'd see more the industry as a whole expand if there were a more spacious release schedule, especially in the summer. Maybe, eventually, someday, someone with some clout at EA will get a clue.
20 years of movie revenues: Look at summer, versus Christmas. Summer is like three solid months of Christmas for movies.
http://www.nytimes.com/interactive/2008/02/23/movies/20080223_REVENUE_GRAPHIC.html
You'd expect big game publishers to realize this.
--Sean
20 years of movie revenues: Look at summer, versus Christmas. Summer is like three solid months of Christmas for movies.
http://www.nytimes.com/interactive/2008/02/23/movies/20080223_REVENUE_GRAPHIC.html
You'd expect big game publishers to realize this.
--Sean
Posted: Jul 28th 2008 12:57PM Vidikron said
I'm trying to figure out what the photoshop of the EA logo represents. Shouldn't it be red if they are posting losses?
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