EA: Holiday sales disappointing

Iria · Dec 21, 2005, 01:45 AM

Electronic Arts, the world's largest video game maker, said Tuesday that it expects revenue and earnings per share to drop significantly for the third and fourth quarters, and for fiscal 2006, due to lackluster holiday sales.

In a conference call with reporters and analysts, EA chief financial officer Warren Jenson said sales had continued to be slow during the first two weeks of December after an equally disappointing November.

"It now appears (that the) overall market will be down double digits," Jenson said. "The demand curve has shifted abruptly."

This is not the first time in recent memory EA has announced disappointing results. In January, and again in July, the company said sales were slow and profits were down. However, "Madden '06," the latest update to the company's best-selling football title, has led industry sales throughout the fall.

Jenson explained that while initial sales of Microsoft's next-generation console, the Xbox 360, were strong in North America and Europe, EA now doesn't think sales of the console or games made for it will be as high as expected.

Further, he said, many people think Sony's forthcoming next-generation PlayStation 3 console will hit shelves in the spring and that may be causing consumers to hold off on purchasing games for the current-generation PlayStation 2 and Xbox.
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Read More / Source: News.com

BiGBrOwNPimpsta · Dec 21, 2005, 03:53 AM

yea well they havent been backing sony that much anymore, what do they expect

Necrosis · Dec 21, 2005, 04:13 AM

What would supporting Sony have to do with it? Sony sucks any way. How many good games are there really out there right now from EA? Um, Madden.....Madden. I rest my case.

nForcer · Dec 21, 2005, 04:17 AM

....Madden?

Dec 21, 2005, 01:45 AM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 89	EA: Holiday sales disappointing Electronic Arts, the world's largest video game maker, said Tuesday that it expects revenue and earnings per share to drop significantly for the third and fourth quarters, and for fiscal 2006, due to lackluster holiday sales. In a conference call with reporters and analysts, EA chief financial officer Warren Jenson said sales had continued to be slow during the first two weeks of December after an equally disappointing November. "It now appears (that the) overall market will be down double digits," Jenson said. "The demand curve has shifted abruptly." This is not the first time in recent memory EA has announced disappointing results. In January, and again in July, the company said sales were slow and profits were down. However, "Madden '06," the latest update to the company's best-selling football title, has led industry sales throughout the fall. Jenson explained that while initial sales of Microsoft's next-generation console, the Xbox 360, were strong in North America and Europe, EA now doesn't think sales of the console or games made for it will be as high as expected. Further, he said, many people think Sony's forthcoming next-generation PlayStation 3 console will hit shelves in the spring and that may be causing consumers to hold off on purchasing games for the current-generation PlayStation 2 and Xbox. __________ Read More / Source: News.com

Dec 21, 2005, 03:53 AM	#2
BiGBrOwNPimpsta HH's #1 Hustla and Pimp Join Date: Jan 2003 Location: The Dirty Dot Posts: 7,717 Rep Power: 107 System Specs	yea well they havent been backing sony that much anymore, what do they expect __________________ Sound Blaster X-Fi Xtreme Music \| Logitech Z-5500 THX 5.1 Surround Sound Speakers \| 2 Lite-On 20x S-ATA Burners \| Logitech G700 Mouse \| Logitech MX5500 Bluetooth Keyboard

Dec 21, 2005, 04:13 AM	#3
Necrosis HardwareHeaven Extreme Member Join Date: May 2002 Location: Ohio Posts: 8,838 Rep Power: 131 System Specs	What would supporting Sony have to do with it? Sony sucks any way. How many good games are there really out there right now from EA? Um, Madden.....Madden. I rest my case.

Dec 21, 2005, 04:17 AM	#4
nForcer Twice the fun! Join Date: Jul 2002 Posts: 1,404 Rep Power: 0	....Madden?