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View Full Version : EA's Quarterly Profits Down 31%


RobertoOrtiz
02-03-2006, 02:32 PM
Quote:
"Megapublisher reports Q4 2005 net income is down $116 million; names Sims 2, Need for Speed as top sellers; claims 70 percent sports-game market share.

When Electronic Arts announced yesterday it was laying off 5 percent (http://www.gamespot.com/news/6143510.html) of its worldwide workforce--around 350 people--cynical observers saw it as a preemptive strike to a lackluster earnings report. As a rule, news of layoffs at an ailing company shows stockholders that said company is taking action to cut costs and shores up the stock price. "

>>LINK<< (http://www.gamespot.com/pages/news/story.php?sid=6143587)

-R

Caffeinemonkey
02-03-2006, 03:32 PM
The Ford and GM of videogames..

mummey
02-03-2006, 03:48 PM
I guess everyone forgot to buy their 'roster update' (http://www.easports.com/madden06/index.jsp) this year. :scream:

Auctane
02-03-2006, 03:51 PM
Gee, that's really weird.

Saurus
02-03-2006, 05:48 PM
...but their stock is up.

slime
02-03-2006, 06:44 PM
I love when a company has a quarterly benefit of 259 million dollars and decides to fire 5% of the staff because the projected profits were higher.
Some people are just money making machines; they don't have any soul.

PhillipCrond
02-03-2006, 07:16 PM
Hollywood is starting to feel the sequel sting a little bit, perhaps game companies will, too. Eventually, the consumers will vote with their dollar, and EA will have to catch up to what people want. And I'm pretty sure what people want is "not another Need for Speed game."

halo
02-03-2006, 07:32 PM
perhaps, but whilst the gamers market represent x% the games industry is looking to broaden its market, so if the mainstream sells, it stays. Added to that EA are probably the most commercially professional company out there that actually understand what they are doing...they may have a lower bar than others try to hit, but they know how to hit it again and again and again. There is a marked difference between their approach at some ends of the market that other publishers could have done with adopting. Yes, they are about the money, but at least they don't waste huge sums of it getting absolutely nowhere then self destructing and blaming difficult conditions etc...

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