Electronic Arts reported fiscal third-quarter earnings Thursday that fell a bit short of already-lowered guidance, though revenue was slightly ahead of expectations and the stock gained in after-hours trading. The video game publisher earned $259 million during the holiday quarter, down from $375 million in the same frame a year ago. Excluding restructuring and other charges, EA earned $268 million, or 86 cents per share, shy of the 90 cents that analysts predicted. Revenue was $1.3 billion, down from $1.4 billion a year ago, but $1 million better than the average analyst forecast. The company cited such hot-selling games during the quarter as Madden NFL 06, Harry Potter and the Goblet of Fire, Need for Speed: Most Wanted, FIFA Soccer 06 and The Sims, each of which sold more than 2 million copies in the frame.
Electronic Arts reported fiscal third-quarter earnings Thursday that fell a bit short of already-lowered guidance, though revenue was slightly ahead of expectations and the stock gained in after-hours trading. The video game publisher earned $259 million during the holiday quarter, down from $375 million in the same frame a year ago. Excluding restructuring and other charges, EA earned $268 million, or 86 cents per share, shy of the 90 cents that analysts predicted. Revenue was $1.3 billion, down from $1.4 billion a year ago, but $1 million better than the average analyst forecast. The company cited such hot-selling games during the quarter as Madden NFL 06, Harry Potter and the Goblet of Fire, Need for Speed: Most Wanted, FIFA Soccer 06 and The Sims, each of which sold more than 2 million copies in the frame.
Leading video game company Electronic Arts appears to have led the way again when it halved the price of some titles and slashed the price on many others. Industry analysts have documented the cyclical nature of the video game industry, which guarantees that new consoles are introduced into the market at a higher price point every five or so years and results in a reduction in existing hardware and software prices. Now that Microsoft launched its $400 Xbox 360 and Sony's PlayStation 3 is on the horizon, EA reduced the price of 48 current-generation games from $20 to $10. Arcadia Research video game analyst John Taylor is one of many who predict that other publishers will follow suit. Madden NFL 06, the top-selling game of 2005, dropped from $50 to $30. Such games as "Harry Potter and the Goblet of Fire," FIFA 06, NASCAR 06 and NBA Live 06 also now retail for $30 after the $10 cut. Need for Speed: Most Wanted dropped from $50 to $40, while "Medal of Honor: European Assault" fell from $40 to $20. The move follows a limited list of price reductions EA introduced in November.
- 1/22/2006
- The Hollywood Reporter - Movie News
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