Electronic Arts is cutting the prices of some of its Sports titles in the US in the run up to the 'Holidays'. There are, apparently 14 games to be slashed, including, NBA Live 08, Madden NFL 08 and Tiger Woods PGA Tour 08.
According to the ubiquitous, "analysts", this is a bad sign going into the holiday season. Banc of America analyst Michael Savner, for example, says that sports games, "account for about 40 percent of Electronic Arts' revenue".
±Pacific Crest analyst Evan Wilson is quoted as blaming what he says are declining sales of the PS2. He is also clearly unconvinced by EA's strategy in terms of 'increasing shareholder value'.
"Over the past three years, pre-holiday cuts on games have been a precursor of slower-than-expected sales," he says. "Investors will surely debate the cause of the reductions, but our stance is that they are never an indication of blockbuster sales".
It's all getting very confusing to SPOnG with companies such as Atari (and parent company Infogrames) and now EA looking poor but US stats provider NPD saying everything's rosy. That's right, David Riley, marketing director of the NPD says that sales in the U.S. of video and computer game-related products will rise from total $19 billion (£9bn) in the US, up from $13.5 billion (£6.5) last year.±±
Source: Forbes
Source: Associated Press
According to the ubiquitous, "analysts", this is a bad sign going into the holiday season. Banc of America analyst Michael Savner, for example, says that sports games, "account for about 40 percent of Electronic Arts' revenue".
±Pacific Crest analyst Evan Wilson is quoted as blaming what he says are declining sales of the PS2. He is also clearly unconvinced by EA's strategy in terms of 'increasing shareholder value'.
"Over the past three years, pre-holiday cuts on games have been a precursor of slower-than-expected sales," he says. "Investors will surely debate the cause of the reductions, but our stance is that they are never an indication of blockbuster sales".
It's all getting very confusing to SPOnG with companies such as Atari (and parent company Infogrames) and now EA looking poor but US stats provider NPD saying everything's rosy. That's right, David Riley, marketing director of the NPD says that sales in the U.S. of video and computer game-related products will rise from total $19 billion (£9bn) in the US, up from $13.5 billion (£6.5) last year.±±
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