Why is EA struggling??

[DawgcityClev]

Seems like no one noticed, but these idiots also bought the PGA license as well. Wow, what a great need to bully out Hot shots and the other Golf game that people love to play. Not that these other titles were targeting the PGA, so why do this? These guys at the top of EA are greedy and screwing up the gaming world. I guess by 2010 a.d. we'll only be playing Electronic Arts crap on the new systems.

[LIGHTNING]

Quote: Originally Posted by MVPlaya

Let me post this again... EA will be fine....they were at around 20 a share before they bought NFL rights...when they bought the NFL rights it shot up to 60. That is a damn shame I didn't have no shares...

We have a sell rating on Electronic Arts, ERTS. It is a poorly managed company it's best days are the past. Growth by acquisition almost always fails.

[Motown]

Quote: Originally Posted by MVPlaya

Each year when MAdden releases...EA shares go up...so wait till Madden and I think they'll gain a lot back.

EA = ARCADE so i wouldn't worry about their profit....the mommies & daddies will support them

[schwaby]

Quote: Originally Posted by MVPlaya

Let me post this again... EA will be fine....they were at around 20 a share before they bought NFL rights...when they bought the NFL rights it shot up to 60. That is a damn shame I didn't have no shares...

Bull****.
Electronic Arts announced the exclusivity deal with the NFL on Monday, December 13, 2004.

ERTS sold the Friday before at 54.19 a share.
On closing on the 13th, shares were at 57.57
It reached a high of 63.44 near the end of the month before hitting highs of the upper 60's in March of 2005

It closed August 5th at 59.00 a share.

Now to say the company jumped 200% in one day is ridiculous.

http://www.google.com/search?oi=stoc...en-US:official

Quote: Originally Posted by LIGHTNING

We have a sell rating on Electronic Arts, ERTS. It is a poorly managed company it's best days are the past. Growth by acquisition almost always fails.

It's a poorly managed company that is slowly cornering in the market in the sports genre. Anybody involved in the market knows that buy and sell ratings mean close to nothing. For every sell rating you have, there is another buy rating. And growth by acquisition did fine by Microsoft for many years.

I am curious. You have a sell rating on it for what reason? I see the ceiling at 65 and the floor at around 48. I would sell here too, but I am interested in what your analysts have to say.

[TomHolmoe]

Quote: Originally Posted by DawgcityClev

Seems like no one noticed, but these idiots also bought the PGA license as well. Wow, what a great need to bully out Hot shots and the other Golf game that people love to play. Not that these other titles were targeting the PGA, so why do this? These guys at the top of EA are greedy and screwing up the gaming world. I guess by 2010 a.d. we'll only be playing Electronic Arts crap on the new systems.

The cartoony golf games like Hot Shots, Tee Off on the old Dreamcast, and even Nintendo's golf efforts are more fun than Tigger Golf anyway. Those games never had anything approaching a PGA license so I don't see it hurting them. It would be more entertaining for those games if they had product licenses for some of the exotic Japanese club makers like a Matsumoto, Tour Stage, PRGR or Honma.

[mazhirui]

Apparently no one listened to the only person on here that has said the only intelligent thing. Electronic Arts is one of the biggest players in the video game industry and their EA Sports division is only that, one division. They're a huge company and their loss (as Bill stated) probably has NOTHING to do with their sports games, or at the most, very little to do with them.

[JohnnyCanuck]

On top of the fact that EA Sports is only one division, EA Sports did struggle to provide revenue to EA for three main reasons: ESPN titled games forced EA Sports to reduce their prices on all their products (including Madden) affecting revenue per unit; ESPN titled games eroded some EA Sports market share; and the NHL lockout affected total sales of EA Sports titles.

The exclusive deals mentioned in this thread, along with securing ESPN branding, will recoup some of the losses to 2K Sports.

Another contributing factor to EA's revenue is the age of the three main consoles. The introduction of nexgen consoles from over the next two years will provide a significant bump in video game sales.