Sackboy
11-03-2007, 08:35 PM
Yeah, I stole this from another forum.
Discuss.
EA stock has been downgraded to 'sell' according to an analyst.
Link (http://www.gamedaily.com/articles/news/ea-to-lose-market-share-as-questionable-game-quality-persists-says-analyst/18402/)
Some bits from the article:
[...]
Patel added that EA's game quality is a concern: "Our investment thesis on Electronic Arts remains unchanged in that amidst solid growth industrywide, EA's game quality remains questionable, which in turn could translate into ongoing market share losses and limit operating margin expansion to historical levels (seen in the previous cycle). In our opinion, the lack of major outperformance on unit volumes among a majority of EA's titles, especially with a growing fixed R&D expense base, represents the single most important hurdle for the company."
[...]
"Additionally, we highlight that retail pricing for several of the next-gen versions (Xbox 360, PS3, Wii) of the two titles have been already marked down to $30-$40 within 4-6 months of release. We think this could become a more widespread problem considering lackluster product quality, weak sell-through thus far (even on major franchises), and a crowded holiday selling season that should favor a handful of titles (Call of Duty 4, Halo 3, Super Mario, Guitar Hero to name a few)."
Discuss.
EA stock has been downgraded to 'sell' according to an analyst.
Link (http://www.gamedaily.com/articles/news/ea-to-lose-market-share-as-questionable-game-quality-persists-says-analyst/18402/)
Some bits from the article:
[...]
Patel added that EA's game quality is a concern: "Our investment thesis on Electronic Arts remains unchanged in that amidst solid growth industrywide, EA's game quality remains questionable, which in turn could translate into ongoing market share losses and limit operating margin expansion to historical levels (seen in the previous cycle). In our opinion, the lack of major outperformance on unit volumes among a majority of EA's titles, especially with a growing fixed R&D expense base, represents the single most important hurdle for the company."
[...]
"Additionally, we highlight that retail pricing for several of the next-gen versions (Xbox 360, PS3, Wii) of the two titles have been already marked down to $30-$40 within 4-6 months of release. We think this could become a more widespread problem considering lackluster product quality, weak sell-through thus far (even on major franchises), and a crowded holiday selling season that should favor a handful of titles (Call of Duty 4, Halo 3, Super Mario, Guitar Hero to name a few)."