Do you think No News is good news?

[nbasuperstar40]

Quote: Originally Posted by LIGHTNING

EA is a "has" been company and they are on the way down IMO. Look at the stock, it has been smashed and this may only be the beginning. I have seen the same pattern where great companys rise and peak then fall. EA has risen for a long time and is near peak and ready for a big fall IMHO. Companys, when small, have more freedom and inspiration to innovate and develop exciting products because they cannot rely on branding, but not all of course succeed in the market place. The key is a great product for a fast growing market and EA had this in the 1980s, 1990s and up to the present, but the video game industry after a HUGE run faces much slower growth going forward because the next generation of console sales will be much lower than the current generation IMHO. EA also faces saturation in the football video game market and this is why they paid such a HUGE amount for the NFL and NFLPA. They either had to pay the NFL/NFLPA a huge sum of money or lose market share to Take Two . The exclusive license will buy EA some time but the reality of a near saturated video football game market will catch up with them. Another warning sign is that EA's management has been aggressive buying up smaller companys with great games because they cannot come up with better ideas. The big problem with branding in entertainment/leisure is that it inspires complacency and discourages change which may become necessary to maintain growth. This is becoming apparent with EA. Most companys that rely almost exclusively on branding with some exceptions eventually face trouble especially in entertainment/leisure. It would not surprise me if in ten years EA was the next Acclaim. It may seem very hard to believe, but big surprises do happen and more often than you might think. Take Two probably will not make another football game. I think they will concentrate on the other sports. Hopefully they can survive and continue to make other sports games, but the future is not so bright.

The next Acclaim, I don't know, I mean Acclaim was popluar but they were nowhere close to EA is at this moment, it's a possiblty, but don't count on it.

[mjb2124]

Quote: Originally Posted by nbasuperstar40

The next Acclaim, I don't know, I mean Acclaim was popluar but they were nowhere close to EA is at this moment, it's a possiblty, but don't count on it.

Not to mention that EA doesn't just make sports games. They have a slew of other games and things that they do.

Speaking of stock. EA's at $52.43 which is down from where they have been in the past, but still is pretty strong. Acclaim on the other hand never really broke $5-$6 on a good day. They were down around .33 cents when they finally shut it down.

EA is a far cry away from that ever happening.