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JT30 · 08-05-2005, 05:16 PM

From the Wall Street Journal Online:
Electronic Arts Inc. posted a loss and said revenue declined in its fiscal first quarter because of a weaker lineup of videogame releases in comparison with a year ago.

The videogame publisher also lowered financial forecasts for the rest of its fiscal year largely because of a delay in the release of an eagerly anticipated game based on "The Godfather" movie.

After regular trading hours, EA, of Redwood City, Calif., reported a loss for the quarter ended June 30 of $58 million, or 19 cents a share, compared with net income of $24 million, or eight cents a share, a year ago. EA's loss was narrower than the 22 cents a share to 28 cents a share the company had forecast and the 24 cents expected on average by analysts surveyed by Thomson First Call.

Revenue declined 16% to $365 million from $432 million. EA said it had a number of strongly performing games during the quarter, including "Battlefield 2" and "Medal of Honor European Assault," each of which sold more than a million copies. However, EA's slate of titles didn't fare as well when compared with the blockbuster titles out in the same quarter last year, including one based on a "Harry Potter" movie.

Tomahawk · 08-05-2005, 05:24 PM

Paying too much for exclusive contracts??

Price cuts on some games like MVP baseball caused by competitors lowering prices??

Mizzou23 · 08-05-2005, 05:27 PM

I'm no expert, but I know a lot of their prices have been lowered a lot sooner than they have in the past. Plus EA Sports games aren't the only games they release. I guess MVP would be the only game released during the first quarter, maybe they didn't sell as many copies this year.

Deegeezy · 08-05-2005, 05:33 PM

I would say that they took an upfront financial loss in order to pay for their exclusive contracts with the NFL and the NCAA. It will more than make up for itself very soon though. It was an investment.

MVPlaya · 08-05-2005, 05:34 PM

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

Fluffhead · 08-05-2005, 05:43 PM

Quote:

Originally Posted by Deegeezy


	I would say that they took an upfront financial loss in order to pay for their exclusive contracts with the NFL and the NCAA. It will more than make up for itself very soon though. It was an investment.

I don't know the details of the transaction, but this expense is typically paid out over a number years, so it may not be that. It may not even show up on the bottom line anyway being an intangible asset and all, but my accounting is rusty so I won't go there.

nofearsp2007 · 08-05-2005, 06:00 PM

Quote:

Originally Posted by Deegeezy


	I would say that they took an upfront financial loss in order to pay for their exclusive contracts with the NFL and the NCAA. It will more than make up for itself very soon though. It was an investment.

thats what i think too.

MVPlaya · 08-05-2005, 06:05 PM

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...

08-05-2005, 05:16 PM	#1
JT30 MVP OVR: 17 Join Date: Jul 2004 Location: FL	Why is EA struggling?? From the Wall Street Journal Online: Electronic Arts Inc. posted a loss and said revenue declined in its fiscal first quarter because of a weaker lineup of videogame releases in comparison with a year ago. The videogame publisher also lowered financial forecasts for the rest of its fiscal year largely because of a delay in the release of an eagerly anticipated game based on "The Godfather" movie. After regular trading hours, EA, of Redwood City, Calif., reported a loss for the quarter ended June 30 of $58 million, or 19 cents a share, compared with net income of $24 million, or eight cents a share, a year ago. EA's loss was narrower than the 22 cents a share to 28 cents a share the company had forecast and the 24 cents expected on average by analysts surveyed by Thomson First Call. Revenue declined 16% to $365 million from $432 million. EA said it had a number of strongly performing games during the quarter, including "Battlefield 2" and "Medal of Honor European Assault," each of which sold more than a million copies. However, EA's slate of titles didn't fare as well when compared with the blockbuster titles out in the same quarter last year, including one based on a "Harry Potter" movie.

08-05-2005, 05:24 PM	#2
Tomahawk MVP OVR: 13 Join Date: Feb 2005 Location: In the land of the Hokies!!!	Re: Why is EA struggling?? Paying too much for exclusive contracts?? Price cuts on some games like MVP baseball caused by competitors lowering prices?? __________________ LETS GO RED SOX!!! LETS GO HOKIES!!! GO PACK GO!!! LETS GO BRUINS!!!

08-05-2005, 05:27 PM	#3
Mizzou23 MVP OVR: 13 Join Date: Dec 2002	Re: Why is EA struggling?? I'm no expert, but I know a lot of their prices have been lowered a lot sooner than they have in the past. Plus EA Sports games aren't the only games they release. I guess MVP would be the only game released during the first quarter, maybe they didn't sell as many copies this year.

08-05-2005, 05:33 PM	#4
Deegeezy Moderator OVR: 15 Join Date: Jul 2002 Posts: 5,269	Re: Why is EA struggling?? I would say that they took an upfront financial loss in order to pay for their exclusive contracts with the NFL and the NCAA. It will more than make up for itself very soon though. It was an investment.

08-05-2005, 05:34 PM	#5
MVPlaya Banned OVR: 10 Join Date: Mar 2003 Location: Los Angeles, CA	Re: Why is EA struggling?? EA will be fine....they were at around 20 a share before they bought NFL rights...when the bought the NFL right it shot up to 60. That is a damn shame I didn't have no shares...

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08-05-2005, 06:05 PM	#8
MVPlaya Banned OVR: 10 Join Date: Mar 2003 Location: Los Angeles, CA	Re: Why is EA struggling?? 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...

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Why is EA struggling??