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Electronic Arts Inc. (ERTS) Message Board

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  • monkabc3 monkabc3 May 6, 2010 1:40 PM Flag

    erts or atvi

    Crap like Mass Effect 2? Oh yah... rest of year! FIFA always does so poorly and Madden too... ERTS has a MASSIVE product catalog. They also have drip revenue streams like social gaming apps and hand held apps. One can only wonder why such a crappy company has $2 Billion in cash. Yikes, hate to be them. Their previous trading range was $44 to $60. Like everyone else, they will make it back up there again.

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    • If you're trying to counter the argument that EA releases crap titles I wouldn't bring up any of their sports franchises particularly Madden. EA has a massive product catalog, so what? They're losing money hand over fist. In the current economic climate, consumers are more selective about the games they buy so it's actually better to have a small catalog with a large, dedicated fan base such as Call of Duty, World of Warcraft, Starcraft etc etc. Having a small catalog also makes it easier to integrate and cross-sell. With a revamped, WoW players like me who never really got into Starcraft 1 are suddenly much more likely to buy Starcraft 2 just because of the new platform. This is synergy and innovation in action. But then again, you own ERTS, you'll be enjoying all that drip revenue *rolls eyes*.

      • 2 Replies to tlreddragon
      • I agree that the current economic climate is severely hampering ERTS, compared to ATVI and their strategy of releasing lesser/bigger games. That will probably continue. I'm thinking more long term when the games sector picks up.


      • Like closing 11 studios and cutting 1500 jobs? They have done exactly what you say they need to do. There were massive restructuring costs which hit their earnings reports. Hopefully now that the restructuring is over the volatility of ERTS will settle down. Mass Effect 2 and Dragon Age should make for a great quarter. Looking forward it is a typically poor quarter which I think is priced in all ready. Then FIFA and Madden and their trimmed down business model should provide for a great August sending the stock to its usual peak in October. That is if they come up with absolutely no new products which would be pretty unusual for a company of this size. What new and innovative games has ATVI come up with in the last... forever. New version of COD, new version of WOW... boring.

        What the hell though? $18 to $17 to $18 in 5 mins! Share volume through the roof! All because of Greece? WTF?

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