EA hasn't been the money-printing powerhouse it had been in previous years, and Cowen Research group blames the decisions of EA's top brass for that. Cowen Research revealed in its latest report (via GI.biz) that EA could still hit its expected revenue of USD 4.3 billion for the next financial year, but that the company would need to see growth in publishing revenue that outperforms overall industry figures by a considerable amount, despite the tough economic climate of today.
Digital distribution will also play a key role in EA's economic future, as the company has stated recently, and EA hopes to grow its business there by 100 percent over the course of the year. Cowen Research's report again sees this as a possibility for the company, yet points out there is considerable risk involved.
One also has the company's two big Wii games to consider: EA Sports Active and Boom Blox: Bash Party. EA expects each to sell 1.4 million and 350,000, respectively, but Cowen Research's report doesn't put much stock in third-party success on Wii. Cowen Research is hesitant to value third-party numbers where Rock Band and Guitar Hero figures are ignored, as the top five percent of third-party titles on Wii sold an average of 860,000 copies, compared to the more lucrative numbers of 1.2 million on the PS3 and 2.5 million on the Xbox 360. These games only accounted for 31.8 percent of total game sales on Wii, compared to 34.2 per cent on the PS3 and 41.2 per cent on the Xbox 360.
Cowen Research finally points out that a buyout could be in the cards, with the company's share price reaching historical lows.
Reader Comments (29)
Posted: May 27th 2009 6:38PM TheDarkWayne said
great, when they finally start making great games they lose money and will eventually start making shit again. Fuck me sideways
Reply
Posted: May 27th 2009 6:39PM TheDarkWayne said
and ill be damned if the current management isnt the one pushing the games to be good
Reply
Posted: May 27th 2009 7:22PM TheDarkWayne said
were Dead Space, Mirror's Edge, Bad Company, Burnout Paradise, C&CRA and related titles, Left 4 Dead, Rock Band 2, and Skate 2 because of the press they got?
Reply
Posted: May 27th 2009 7:36PM (Unverified) said
I'm gunna go with Wayne on this one... EA has finally turned around, started pushing out some real innovation and quality games, and here come the analysts, and soon the shareholders, on their march to burn this thing right down to the ground again.
Amazing how BlizzActivison has taken over the reigns on the industry, the craptastic sequels, and the non-gamer household names. Just because everyone's Mom bought GH3&4, and even their dog plays WoW, suddenly the "right call" is to cater to "non-hardcore" consumers... yes, make us 12 more movie tie-ins and 20 more sequels with a number higher than 5 on the end, because it'll sell regardless of quality.
I wish I could say that having our passion and entertainment cater to people who don't care whether they go out or stay in, watch a movie or play a game, buy a household item or buy a console, doesn't bug me... but that's a lie, because it effects investors and attitudes of everyone involved. "No, I don't want to invest in your innovation... I'd rather invest in a licensed casual puzzle game".
I hate it. Cowen Research? Shut the hell up. Shareholders and boardmembers? Leave the company alone. You turn them back into the EA of old and I'll.... probably just make anonymous hatespeech on niche internet sites.
Reply
Amazing how BlizzActivison has taken over the reigns on the industry, the craptastic sequels, and the non-gamer household names. Just because everyone's Mom bought GH3&4, and even their dog plays WoW, suddenly the "right call" is to cater to "non-hardcore" consumers... yes, make us 12 more movie tie-ins and 20 more sequels with a number higher than 5 on the end, because it'll sell regardless of quality.
I wish I could say that having our passion and entertainment cater to people who don't care whether they go out or stay in, watch a movie or play a game, buy a household item or buy a console, doesn't bug me... but that's a lie, because it effects investors and attitudes of everyone involved. "No, I don't want to invest in your innovation... I'd rather invest in a licensed casual puzzle game".
I hate it. Cowen Research? Shut the hell up. Shareholders and boardmembers? Leave the company alone. You turn them back into the EA of old and I'll.... probably just make anonymous hatespeech on niche internet sites.
Posted: May 27th 2009 8:39PM TreyIM2 said
I have to agree that EA has made the big turn around but there is, unfortunately, still a negative stigma attached to EA but I think the economy may have an added affect on this. Lots of gaming companies are suffering, overall. Eh, I still support EA. I don't take things personally like many and let that affect who I purchase games, hardware or whatever from whatever companies. Nobody's perfect and people make mistakes. It's how they redeem themselves and make amends that's important.
Reply
Posted: May 28th 2009 12:39AM AsherR said
Thinking the same thing, Wayne.
I also like how if a dev they own puts out a crap game, then it's EA's fault. But if a dev they own puts out an awesome game, then EA just stole them or something.
Sure EA can have negative effects on Devs, but they can have positive effects as well. They are finally trying to push out new IPs and people still just whine.
And Mirror's Edge was actually pretty fun, imo.
Reply
I also like how if a dev they own puts out a crap game, then it's EA's fault. But if a dev they own puts out an awesome game, then EA just stole them or something.
Sure EA can have negative effects on Devs, but they can have positive effects as well. They are finally trying to push out new IPs and people still just whine.
And Mirror's Edge was actually pretty fun, imo.
Posted: May 28th 2009 10:19AM Johnny Neat said
I'm so with you. What the hell is wrong with shoppers/gamers? They seem to like crap for the most part and solid games get over looked oddly. Dead Space for example really made me rethink EA. I can't say the same for Army of Two which was crap. But I faith, no pun intended, in EA's change of direction has been a good one thus far. Someone with power needs to give it time.
Reply
Posted: May 27th 2009 6:41PM (Unverified) said
This should be interesting
Not the outcome of the story, but whether or not haters have enough left in the tank for a 3rd potential flame war
Reply
Not the outcome of the story, but whether or not haters have enough left in the tank for a 3rd potential flame war
Posted: May 27th 2009 7:05PM Captain Planet Planeteer Power said
How to fix EA and make them profitable again:
1. No more WWII/Battlefield games from DICE
2. Shut down EA Black Box/Canada and/or force them to stop making shitty NFS games and Street titles
3. Shut down EA Montreal
4. Invest more money/time/management power into Visceral Games
5. Shut down EA Phenomic
6. Shut down EA Salt Lake
7. Punch John Riccitiello in the face and promote Peter Moore to CEO
Problem = Solved
Reply
1. No more WWII/Battlefield games from DICE
2. Shut down EA Black Box/Canada and/or force them to stop making shitty NFS games and Street titles
3. Shut down EA Montreal
4. Invest more money/time/management power into Visceral Games
5. Shut down EA Phenomic
6. Shut down EA Salt Lake
7. Punch John Riccitiello in the face and promote Peter Moore to CEO
Problem = Solved
Posted: May 27th 2009 7:12PM TheDarkWayne said
Peter Moore? Seriously? Hasnt EA Sports been doing less since he joined? Also, the Battlefield series is still profitable, Bad Company sold like what 2mil?
Reply
Posted: May 27th 2009 8:09PM SpaceFox said
Um, WTF. The Battlefield series has been going strong for years now, and still has a large amount of fans and a great community, which DICE actually bothers listening to. With 1943 coming next month DICE will be able to even further expand their audience, and probably sell a lot more copies of Bad Company 2. DICE is here to stay.
I agree that we really don't need to see more NFS games, but if they bring in a profit for EA I don't see why they woudn't continue with the series.
P.S: I have no idea if NFS is still a profitable series, just saying. =P
Reply
I agree that we really don't need to see more NFS games, but if they bring in a profit for EA I don't see why they woudn't continue with the series.
P.S: I have no idea if NFS is still a profitable series, just saying. =P
Posted: May 27th 2009 8:49PM TreyIM2 said
Wayne, I have to disagree about EA Sports, my friend. Do u remember how NHL 2K and PES dominated over EA's NHL and Fifa? Not anymore. They have turned around NHL and the Fifa franchises to the point of critical acclaim and now they are working on Madden and Live. Madden looks like it will be insane this year and the Live team even acquired a lead designer or whoever he is from 2KSports and he and co have already spoken about how Live already in these early stages is not "the same" as previous Lives. EA seems to be going hard on all levels.
Reply
Posted: May 27th 2009 7:21PM Captain Planet Planeteer Power said
Riccitiello thinks the money comes in with licensed movie tie-in games and Madden. I'd rather have Moore in there because he'd be willing to give original IP's a shot rather than sequel after sequel.
Reply
Posted: May 27th 2009 7:24PM TheDarkWayne said
I dont see how that can be true considering the slew of new IPs EA has released lately
Reply
Posted: May 27th 2009 7:33PM (Unverified) said
so in order to stop having EA think money comes from Madden, they should replace Riccitello with the guy whose job it is to make Madden?
Sound foolproof, when can we start?
Reply
Sound foolproof, when can we start?
Posted: May 27th 2009 7:45PM HDpurist said
For the past 20+ years, EA has sucked balls to the walls. Their games have always lacked playability and class. Name 1 good EA franchise that has had a successfull "Collection" release...Nothing.
I hope EA goes bankrupt one day, they suck so hard, they've purchased amazing companys and brought them down to pure garbage. Better now than never that people start seeing this company how crap they are.
This is good news...no great news.
Reply
I hope EA goes bankrupt one day, they suck so hard, they've purchased amazing companys and brought them down to pure garbage. Better now than never that people start seeing this company how crap they are.
This is good news...no great news.
Posted: May 27th 2009 9:06PM (Unverified) said
Idc about either EA or actizzard, i want Take Two to rise up from wutever place there in and be as successful but also be a private company that way wall street doesn't turn them into mindless zombies.
Reply
Posted: May 27th 2009 10:29PM (Unverified) said
First off aside from Dead Space, which wasn't truly developed by EA, as much as a subsidiary that they put together via stolen or bought out groups.
Left 4 Dead was a Valve Game... just an FYI.
Mirrors Edge while unique and an innovation, had a rough and skewed storyline and was pretty poor in my opinion.
All the sports titles can go to Hell for all I care, I hate how people would rather play sports on their TV then just go out and play them... so stupid, and I'm not even a fan of sports in the first place.
Aside from that... EA has a HORRIBLE TRACK RECORD, releasing RE3 with Anime-style combat and vehicles / units was just stupid, and they ruined the C&C franchise with Tiberium Wars, and further with Kane's Wrath.
They just bought Bioware and Bioware is resisting them quite a lot but they can't resist forever, I just hope EA has the sense to not fiddle with Bioware aside from giving them more money to make better games.
Battlefield, let's see last one I bought was 2142 which was a great concept and turned out pretty poor, and they haven't shown that much support to it in reality, not directly or critically at least. As for Bad Company and all those others, it's time to stop milking the series name for an adequate game and make something good, and I'm sick of WWII games, and thus won't be buying 1943, as I know many others who won't as well.
Let me take a look at EA's site and post what else they've ruined.
DeadSpace is being milked, and while a sequel is inevitable (which is stupid as there is no WAY the ending would have been like that, it's illogical and unrealistic in all manners, and just plain stupid) they have done poorly with Extraction and their new Wii focus.
It's obvious they are going to ruin GI Joe, the question is do they do it before or after the movie ruins itself (I have high hopes but I doubt they'll come true).
They've milked Sims beyond all doubt, despite it being profitable it's become rehash.
Lord of the Rings Conquest was a colossal failure in truth, but they plan on milking that, just like BFME and BFME II which were also failures.
I'm keen on believing they ruined Spore.
All the movie rehash's and Harry Potter games are becoming sickening as they all suck.
I hope they crash Brutal Legend because it's a stupid concept in all manners anyway, and so it deserves to die...
Dante's Inferno is a weird concept which shows how studios are running out of good ideas.
Army of Two was a failure in all manners and was just stupid, and now they want to make a new one, to appeal to those Xbox Live idiots (not people who play an Xbox, just the stereotypical Xbox Live players).
Never been very fond of the Mercenary games but I won't put on a line on that franchise just because of my lack of insight into it.
We all know how much their sponsoring of Warhammer Online did... it is a massive failure, in terms of a good MMO.
Crysis was good I'll give it that, but it paled in storyline and focuses more on multiplayer to my dismay, I blame EA for that focus.
When's the last time a good Medal of Honor came out?
After reviewing all 400 games.of theirs it's safe to say they have had only 2 good games within their entire history of being a publisher / developer...
They've killed so many Franchises like WestWood and numerous others, that it's pathetic, now they are buying out good companies to get their funds so they can kill them as well (probably unintentional but due to incompetence).
Why Peter Moore left Microsoft is beyond me.
Reply
Left 4 Dead was a Valve Game... just an FYI.
Mirrors Edge while unique and an innovation, had a rough and skewed storyline and was pretty poor in my opinion.
All the sports titles can go to Hell for all I care, I hate how people would rather play sports on their TV then just go out and play them... so stupid, and I'm not even a fan of sports in the first place.
Aside from that... EA has a HORRIBLE TRACK RECORD, releasing RE3 with Anime-style combat and vehicles / units was just stupid, and they ruined the C&C franchise with Tiberium Wars, and further with Kane's Wrath.
They just bought Bioware and Bioware is resisting them quite a lot but they can't resist forever, I just hope EA has the sense to not fiddle with Bioware aside from giving them more money to make better games.
Battlefield, let's see last one I bought was 2142 which was a great concept and turned out pretty poor, and they haven't shown that much support to it in reality, not directly or critically at least. As for Bad Company and all those others, it's time to stop milking the series name for an adequate game and make something good, and I'm sick of WWII games, and thus won't be buying 1943, as I know many others who won't as well.
Let me take a look at EA's site and post what else they've ruined.
DeadSpace is being milked, and while a sequel is inevitable (which is stupid as there is no WAY the ending would have been like that, it's illogical and unrealistic in all manners, and just plain stupid) they have done poorly with Extraction and their new Wii focus.
It's obvious they are going to ruin GI Joe, the question is do they do it before or after the movie ruins itself (I have high hopes but I doubt they'll come true).
They've milked Sims beyond all doubt, despite it being profitable it's become rehash.
Lord of the Rings Conquest was a colossal failure in truth, but they plan on milking that, just like BFME and BFME II which were also failures.
I'm keen on believing they ruined Spore.
All the movie rehash's and Harry Potter games are becoming sickening as they all suck.
I hope they crash Brutal Legend because it's a stupid concept in all manners anyway, and so it deserves to die...
Dante's Inferno is a weird concept which shows how studios are running out of good ideas.
Army of Two was a failure in all manners and was just stupid, and now they want to make a new one, to appeal to those Xbox Live idiots (not people who play an Xbox, just the stereotypical Xbox Live players).
Never been very fond of the Mercenary games but I won't put on a line on that franchise just because of my lack of insight into it.
We all know how much their sponsoring of Warhammer Online did... it is a massive failure, in terms of a good MMO.
Crysis was good I'll give it that, but it paled in storyline and focuses more on multiplayer to my dismay, I blame EA for that focus.
When's the last time a good Medal of Honor came out?
After reviewing all 400 games.of theirs it's safe to say they have had only 2 good games within their entire history of being a publisher / developer...
They've killed so many Franchises like WestWood and numerous others, that it's pathetic, now they are buying out good companies to get their funds so they can kill them as well (probably unintentional but due to incompetence).
Why Peter Moore left Microsoft is beyond me.
Posted: May 28th 2009 4:23PM TheDarkWayne said
It's not stealing, it's called fucking business, no one gets pissy when Kraft foods buys pepsi co or some shit. L4D was developed by Valve, put published by EA, that's what they do, they are a publisher. Tiberium and Kane's wrath as well as the assorted Red Alert stuff have gotten great reviews and sold pretty well also. Everything Bioware has said about EA has been completely positive, they aren't resisting anything because EA hasn't interfered at all, bioware still has complete creative control. Bad Company was a great game that gave people the ability to do something we've been begging for for years. Sequels=/= milking, it's dead space 2, not dead space 13, and the ending was fine, it wasn't suppose to be logical it was supposed to make you question whether it was real or not, whether Isaac was sane or not. You obviously haven't played extraction but it seems like it'll be pretty good despite your unfounded negativity. I'm not sure where you got the idea that BFME was bad, or that they're gonna milk Conquest, because there hasn't even been a rumor of a sequel for that. Brutal Legend is a fucking great idea from a fucking game design legend, and you should just hang up your controller if you dont like Tim Schafer. They might be running out of ideas even though that's not the case, but at least it isn't another "milked sequel" you seem to hate so much for no reason. If you bothered to read anything about Army of Two TFD youd realize how much they are cutting out the stupid "bro stuff" as well. Warhammer is doing very well for itself and was very well received. Just because you dont like multiplayer doesnt mean Crysis was bad. Jesus, looking at your post history it's obvious you hate just about every game ever, and are just trying to find things to hate, or maybe play some the games it's really very clear you haven't
Reply
Posted: May 29th 2009 7:46AM elmer said
This Cowen "research" is riddled with illogical metrics in regards to Wii and so calls into question ALL their EA 'analysis' as well.
Eg: Top 5% accounted for 31.8 percent of total game sales on Wii, compared to 34.2 per cent on the PS3 and 41.2 per cent on the Xbox 360.
This was used as a reason not to work on Wii, but is actually a bad thing. High percentages for a tiny fraction of the 3rd party market (particularly the 360) means an extremely anemic market place remaining for 95% of titles.
Eg: Top 5% of third-party titles on Wii sold an average of 860,000 copies, compared to the more lucrative numbers of 1.2 million on the PS3 and 2.5 million on the Xbox 360.
This is incomparable as the number of titles available for Wii dwarf the number of titles available for the others (thanks to shovelware). This means you're comparing the average of the top 10 third party games on PS3 to the average of the top >20 third party games on Wii. Totally irrational (and a cherry picked metric that particularly disreputes the Wii).
Eg. "where Rock Band and Guitar Hero figures are ignored"
This is pointless, baseless, anti-Wii, and frankly contradicts the point they're trying to make, seen as Rock Band was published by EA. Rock Band is excellent evidence that the right product on the Wii can lift your bottom line, and that putting more effort in on your Wii iterations (ala RB2>RB1) improves your sales.
Eg. Wii sold an average of 860,000 copies, compared to the more lucrative numbers of 1.2 million on the PS3 and 2.5 million on the Xbox 360
Joystiq put "lucrative" in, but Cowen research cited this as reason Wii support is bad. SALES ARE VANITY PROFITS ARE SANITY. Sales are meaningless without costs. I've heard most HD games have break even sales of ~2 million. This would mean the AVERAGE game in the top 5% of 360 3rd party sales would make small money. In fact it means the lower half of the top 5% might not make money at all. This indicates a good chance that 97.5% of 360 games don't make money. It's probably less, and probably even less that lose money. But I wouldn't be surprised if >80% of 360 games LOSE MONEY. THE PS3 is even worse. I wouldn't be surprised if the only PS3 games earning are COD4, MGS4 and GTA4. By comparison an average 860,000 on the Wii is actually a high return on investment if the average Wii 3rd party spend is likely around $3~4 million with a break even number
Reply
Eg: Top 5% accounted for 31.8 percent of total game sales on Wii, compared to 34.2 per cent on the PS3 and 41.2 per cent on the Xbox 360.
This was used as a reason not to work on Wii, but is actually a bad thing. High percentages for a tiny fraction of the 3rd party market (particularly the 360) means an extremely anemic market place remaining for 95% of titles.
Eg: Top 5% of third-party titles on Wii sold an average of 860,000 copies, compared to the more lucrative numbers of 1.2 million on the PS3 and 2.5 million on the Xbox 360.
This is incomparable as the number of titles available for Wii dwarf the number of titles available for the others (thanks to shovelware). This means you're comparing the average of the top 10 third party games on PS3 to the average of the top >20 third party games on Wii. Totally irrational (and a cherry picked metric that particularly disreputes the Wii).
Eg. "where Rock Band and Guitar Hero figures are ignored"
This is pointless, baseless, anti-Wii, and frankly contradicts the point they're trying to make, seen as Rock Band was published by EA. Rock Band is excellent evidence that the right product on the Wii can lift your bottom line, and that putting more effort in on your Wii iterations (ala RB2>RB1) improves your sales.
Eg. Wii sold an average of 860,000 copies, compared to the more lucrative numbers of 1.2 million on the PS3 and 2.5 million on the Xbox 360
Joystiq put "lucrative" in, but Cowen research cited this as reason Wii support is bad. SALES ARE VANITY PROFITS ARE SANITY. Sales are meaningless without costs. I've heard most HD games have break even sales of ~2 million. This would mean the AVERAGE game in the top 5% of 360 3rd party sales would make small money. In fact it means the lower half of the top 5% might not make money at all. This indicates a good chance that 97.5% of 360 games don't make money. It's probably less, and probably even less that lose money. But I wouldn't be surprised if >80% of 360 games LOSE MONEY. THE PS3 is even worse. I wouldn't be surprised if the only PS3 games earning are COD4, MGS4 and GTA4. By comparison an average 860,000 on the Wii is actually a high return on investment if the average Wii 3rd party spend is likely around $3~4 million with a break even number
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