But I have this feeling that we are going to look back a couple of years from now and kick ourselves for not really loading up on this company. The confidence of the CEO, these subtle transactions, the conversion ,the brand etc etc. I love this stock. I know I am not alone.
hope is not an investing strategy. there are too many headwinds on EA right now. the video game business takes years of development to create hit products and EA just doesn't have any "game changers" in play right now. i love the digital strategies that will squeeze more revenue out of franchises, but EA has cut the number of titles they release in half, yet they have the same size workforce as previously. so squeezing more revenue per title is not resulting in higher profits because they still have the same size workforce. also, the mobile and social gaming areas are too competitive, with no barriers to entry.
this business is simply a difficult business to be in at the moment. ea's great brand strength will be very powerful, if and when the video game business gets it's groove back with an exciting new platform.
nevermind I take the two million number back. I assumed that too many people are willing to pony up $50 for dlc for a great game like I was. It probably won't even get into the millions before the quarter is out. It will most likely be more like 200k-300k :/
haha wow! I am completely embarrassed right now, you sir are correct. However I do think it will be more the 2 million range of how many people buy it. But this could be a huge mover for the stock then since I doubt the Premium service was taken into account when the analysts were making their estimates for the upcoming quarter. I mean they only announced the service within the last month so there's no way the analysts took it into account. Haha I'm really glad you corrected my two zero mistake there as I am now more hopeful for this stock.
I went long about two weeks before the last earning report at 17.97 and it went to 20.61 after earnings before collapsing. I thought it could go to $24 but I was planning on selling at $22. Now I'm just hoping to get back to $16 or $17 so I can get out with dignity.
Im looking at getting in this stock and am thinking the same thing. I'm an avid "gamer" and from what I'm seeing, I think I need to pick up some shares at these prices.
EA just offered "premium" for Battlefield 3. That's $50 a pop (the cost of the original game) and most everybody that plays the game will pick it up. I already bought it.
EA makes good games and they will continue to be a market leader IMO.
I was also just thinking that same exact thing about the Premium adding to their earnings because I also bought it today. However, even though it is very high margin Digital Content, I do not think it will have a significant impact on earnings. VGChartz reports about 13.4 Million units of Battlefield 3 that have been sold. If you add in origin Sales that could make it as high as 14 or 15 Million. Even if 3 million purchased premium that would only increase earnings about 0.5 cents per share for the upcoming quarter. And I don't know if that many will purchase it since this game is getting old and only the more loyal players are still hanging around. And it takes a significant amount of loyalty to hand over another $50 for DLC even if you are getting a better deal in the long run simply because of the sticker shock feeling compared to most other DLC.