When I look at EA- you are betting on one strategy and leaving the past behind. Like most small time investors without billions to throw around, it's all about the strategy and future perspective. To me, EA has made a HUGE bet on the digital future- and who can blame them? Personally, I think they are right.
How many people here buy CD's anymore? Or DVD's? Or even books? Sent a hand written letter instead of an E-mail? Even large magazine publishers are pushing their "digital" publications. So first you can think EA is absolutely right in doubling down on the future of digital content and be comfortable with it- because it is all going that direction. To a point, it has helped them in a big way to avoid even larger losses than if they just stayed with boxed products. Can you imagine where this company would be if they where absent on ITunes or Google? Just look at The Apple Stores "Top Grossing" category on ITunes and in the Top 50 slots you will see EA more than any other Game Publisher. Additionally, how many new smart phones, tablets, IPods and other devices do you think were activated in the last 6 months, it was more than likely close to double than a year ago. What type of Apps are these people going to add? 8/10 are games. To me that is huge, for the future stagey investor. Where is ATVI or Microsoft or some of the other big house publishers? Yeah they have had maybe one or two games there but not the 50+ EA has going for it. So over-all you are betting digital and digital apps are going to make EA more money than just staying as a "boxed product." The problem with this is can analysts truly, in any given quarter, know how much EA can profit from digital and App content- the true answer is.... it is a best guess, until that is digital growth is a stable economy of sorts.
But the "con" and other strategy which is the negative short basis is that EA has let the "True" gamer down by pushing digital paid content and trying to milk the gamer for the best product. Boy did they take a beating with users with their Mass Effect 3 digital debacle. Not only did it kill the reputation (which is key in the gaming world) but put the company in a very bad spotlight. Gamers are fickle... They want to be entertained but not annoyed with game interruptions and money to make "their" gaming experience better. This goes for Apps and PC, Xbox PS3. In my perspective EA has to improve on this. If they want to make a ton of money they have to make their gamers feel they are improving their game character, stagey, experience and (I hate to say it) self worth by "investing" more money into the entertainment value they will get. ATVI are experts at this... With rather their expansions or their 2nd, 3rd and 4th series games. They improve on the gamers experience.... Simply put EA has lost sight of experience and long term die hard customers and it has lost them a huge amount of money. It's like Liongate films VRS Dreamworks films- there is no comparison.
So I am curious on y'all's perspective. I like EAs strategy but hate their Ideals. I think they have it right to be going digital, but lack the integrity to their product. I think with volume they will continue to drive digital revenue and with that, offset their loses in "boxed" products. What do you think? Personally I am long EA, but am keeping them on a tight rope. Thanks for your thoughts and input.
i think they have right strategy but just are flat out not executing. they had this xmas with no good game, tablet offerings are ok they have yet to have a blockbuster. they buy a one hit wonder studio that doesnt make another for absurd price. to me they should leverage the console ip on tablets make mini games that tie into each other. like a mass effect on tablet game would unlock special items on the 360 version or something to that nature to do some cross selling.