I was an ERTS investor until just recently. My kids and I have always enjoyed EA games, but I will no longer buy a single EA game. EA is becoming the next Microsoft. I used to work for a company that Microsoft drove out of business just like EA is trying to do and monopolize this industry. I know I'll be a small voice, and my money won't matter a bit to EA, but as of today I will never, ever, purchase a single EA game for me or my family. I will also tell my friends and other family members about EA's way of business and I will do my best to urge anyone I know not to buy their products.
No reason to get so upset. I'm an investor in EA, so I obviously support the company. I just think it's fine for somebody to believe differently and I'm not so totally in support of the company that I think the company can do no wrong. That's right -- I'm not a fanatic long or short -- what the hell am I doing on a stock message board? :)
Nothing wrong with aspiring even if you fail sometimes. If Gino didn't eat Kraft or McDonald's food or shop at Home Depot, would you be ok with him not investing in EA? That strikes me as an odd set of demands. Not everybody can be perfect, at least Gino's trying. For a lot of people, the instinctive response is to try to knock them down, I say, go for it.
Nobody lives in a country and economic system that acts 100% as they would like. Given that, individuals have to live and invest according to their moral code.
Many people attempt to create a life balancing the private good and the public good. Where that balance is struck depends on the person. Some people will invest in anything that makes them money, many people have some requirements beyond that.
Gino *can* have it both ways. He can invest in companies whose business practices he approves of. He's not saying hug, he's saying fight fair. I think the difference is pretty clear.
I'm with you. I loved EA since Madden back on the Genesis but I simply liked Sega's football games more since 2K for the Dreamcast and even more since ESPN. I know it's just business, but it stinks and will lead to less choice for the consumer and lower quality games. I am 37 and thought I would play games forever but I always stuck around and bought the latest consoles and started with football every fall and wound up buying at least a few other games too. Without football to spark my interest, I may be done for good. That's sad. Maybe EA will complete the cycle and buy Visual Concepts from Sega to simply buy the better game and sell it themselves.
"Maybe EA will complete the cycle and buy Visual Concepts from Sega to simply buy the better game and sell it themselves."
Why would they pay $200M to buy a company after they spent $1.5B to crush them?
Tru... Probst and crew certainly play dirty.
The problem with this stock is that it is now way overpriced for what their next few quarters will produce. At this price, you would think they are the only one selling sports games, while TTWO/SEGA are still in the game and will continue to nip at this dog...
EA had the Goldeneye name on a product this year, but even with its legacy (thanks to the N64 masterpiece), EA didn't sell nearly what was projected. EA still needs to execute in what really matters - game play and innovation... something their overworked developers have a hard time doing...
EA is sure paranoid, they spent $300 million - $1 billion on the NFL deal, probably a similar amount on this deal, is it really worth it?? They already own the market. They lost $20 million in sales because of Sega's ESPN games, but how many more games do they have to sell to get back all this money they're throwing at these licenses?
EA has been hoarding cash and must've been scratching their collective heads on what to do with it. So it's either paying for some venture deals to choke out all their competitors or giving out $2-plus per share dividend. And, they've managed to do both!!!
Kudos to the EA geniuses.
Some posters have commented that the ESPN deal enhances shareholder value. Based on what?...what are the costs here? I find it interesting that this "minor point" hasn't been disclosed.
I don't short stocks. I was a long term investor in erts until I read about their over-working their employees without extra pay, and how they've gone about handling competition from ESPN. Today, I decided that I will no longer buy their product, that�s all. It's one thing to compete and win, but it's another thing to destroy another business with people and families to feed. Their greed and I'm partially to blame, being a shareholder for so long, is destroying lives. I can no longer support it, I doubt they even care, but I hope they read this board and know I'm not the only one out there who's disgusted by the way they chose to conduct themselves and their business. This is the company who sold its shareholders (I attended their annual meetings) on integrity, values, and honesty. I'm ashamed to have held stock in this company.
You're a dummy. While I don't think it's ultimately healthy for EA to be so big and alone in terms of there being no one near their size, there are stark contrasts to how EA got there vs. how MSFT got where they are. Even you can't be blind enough to not recognize this. EA's driving no one out of business or competing unfairly, but they are doing a good job of not blundering the way so many have (IPLY, THDO, AKLM, etc.) this generation. EA didn't do a think to put them under, they did it themselves.