Electronic Arts Suffers $45 Million Loss

The Escapist : News : Electronic Arts Suffers $45 Million Loss: ". . . analyst Michael Pachter said EA is being "overly conservative" in the wake of disappointing Medal of Honor: Warfighter sales, which were bad enough that the publisher revealed yesterday that plans for future games in the franchise have been shelved. "They were probably a little shell-shocked by how bad holiday demand was, and I think at the low end they're probably assuming demand is down 20 percent or so," he said. BMO Capital Markets analyst Edward Williams also noted that some of EA's troubles are beyond its control, as the entire industry is suffering from a downturn in demand as consumers await next-gen hardware from Sony and Microsoft. "The guidance pretty clearly represents a lot uncertainty in the market and that uncertainty stems from recent performances as consumers are pretty aware of new consoles coming," he said. In other words, the news may not be great but it's not necessarily all that bad, either. EA also announced that its digital business is continuing to grow, with games and services for mobile (including handhelds) growing 18 percent year-over-year to roughly $100 million, and that its Origin platform now has more than 39 million registered users and distribution deals with 86 independent developers."

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