More layoffs and a further reduction in products. This doesn’t seem like the way to get out from under, and I think there’s more grim news ahead of them. Who will buy up those licenses and that brand? Activision Blizzard EA? Ubisoft EA?
Oh you.
Yup.
5
Magic Eight Ball says…
I’ll know in about 3 years.
You’d think EA’d at least survive to pump out its sports titles. Those are profitable right? Or are they so far in the hole they can’t even ditch everything else and focus on that?
No, they will be acquired by the ghost of Brash Entertainment.
Wait, if EA goes how will we ever find out what happens next in Marvel vs. EA?
Fan fiction, of course! How do you think I have survived without Beetle Adventure Racing?
I’m not sure if you guys are paying attention? Third quarter (Christmas season) loss of $641 million, net income of 56 cents a share (analysts expected 88), etc. From what I understand, the $860 million reported in 2007 as the cost for buying Bioware and Pandemic is actually closer to a billion, and it will take roughly ten years before they start seeing a net profit from that deal.
The response from EA has been extreme cost-cutting, ie. shutting down studios and cancelling projects. It’s sad because I salute what they’re doing in terms of supporting original IPs, etc., but they’ve chosen an especially lousy time to post the losses they’re experiencing and a lot of their gambles aren’t paying off. The stock price surged on the layoff announcement but that won’t last if there isn’t a steady revenue stream, and soon.
I’m obviously not hoping for this (I’m in the games business and the more employers out there, the better), but I honestly am wondering if all Disney rumors will finally materialize into something real. What strange days - did you ever think you’d see EA stock at 17?
You are aware that sales were up 10% year-on-year, right? A leaner EA can certainly be profitable.
It’s too early to tell. They still have time to turn things around. Plus they haven’t booted Ricitiello, so they can’t be that desperate yet.
Gee, you mean allowing the CEO to use the company purse to engage in related party transaction and overpay for his own company didn’t work out?? Shocking!
Heh. Yeah, that was my reaction too when it went down.
I know it’s a business of big, often long-term, investments and large risks, but if your sales are going up, up, up and you’re still hemmorraging money, isn’t it a case of “business: You’re doing it wrong”?
Respectfully
krise madsen
Lord British will buy them for $10 and get to work on Ultima X.
IIRC, EA has 3+ billion Dollars in cash reserves. I’m not worried about them yet and somehow doubt they’ll be burning as much money in the years to come.
The more interesting and appropriate question would be whether THQ still will be around in 3 years. Amd will Midway be around next month?
EA isn’t going away. Even if this is the Great Depression 2.0, EA will be one of the survirors along with Activision and Nintendo.
I think we will see an EA less willing to take risks.
Oh yeah, man! Because they’re so edgy. Yeah.
No, they aren’t but last year EA titles weren’t your typical lineup you would expect from EA. EA was probably my favorite over all publisher last year because of titles such as Dead Space.