this holiday they had no top 10 game. medal of honor didnt do well. im excluding sports games cause they are there every year but are not that profitable after they pay nfl license etc. dead space 3 and simcity should do fairly well for this winter.
Their sports games aren't that profitable?!! You on crack? Sports games are the core of EA. I don't play them but as an investor they are awesome? People will ALWAYS play sports games, maybe get sick of 6-8 years of COD FPS, possible. Not playing their favorite team in FIFA or Madden, timeless. The product is already there, they just have to improve it and update it, low R&D... every year, year after year. This quarter will be weak but the forecast will be great and that is all the investment community cares about. For every XBox720 and every PS4 that is made EA will sell a Madden or a FIFA or a PGA, they delayed NBA for quality or maybe the new consoles, so one of them too. EA is also a distributor for not just their games but for EVERYONE else's. Origin is just one more huge aspect of EA that makes it an incredibly diverse company. There is no other game company like it out there. If they continue with their business model, ATVI will fail, it is just a matter of time. 3-5-8 years. Mark my words. WHA HA HA HA!!!
New consoles take a while to pan out. This is where EA should be making the big money, when the consumer market is saturated with the current gen of console owners.
I agree with you that digital is where its at. Margins are better, distribution is better. Also, sad to say, but I think the console market is fading away. (For the time being at least).
Come on Iraj!
"Also, sad to say, but I think the console market is fading away"
You mean that you think the market might be saturated after a console cycle of 9 bloody years?! Wow, that's a shocker. And you are saying this 5 months before the demonstration and announcement of the next generation of consoles? You don't think that Madden and Fifa are being developed for XBox720 and PS4? Do you think that moneymakers are going to wait until everyone has bought one and there are tons of titles available to then invest in EA? Pretty sure that they can think more than 12 months down the road. Why else do you think that EA moves $75million in shares a day, every day? At this point EA could have been doing everything wrong for the last two years, who cares? The new console cycle is finally upon us and EA has a MASSIVELY diverse product portfolio and now has their own digital distribution platform. At $14 a share, anyone betting against EA for 2013 is not going to win.