EA Suffers from Lack of Innovation

Kirjoittanut: Livegamers


Electronic Arts Inc. exceeded expectations with its fourth-quarter earnings proving to investors that it is indeed a solid investment. However financial analysts have begun speculating if EA has become overvalued.
EA has been holding on to a gold mine in the form of sports games, a genre that is said to be the most lucrative and, more importantly, most reliable segment of the gaming industry. But analysts are worried, that there simply isn´t enough innovation there. Year after year of similar sports titles might get trampled over by more innovative thinkers and developers.

”EA just mass-markets these sports titles every year, but they´ve been sucking on that pig for a long time and it´s kind of painful to watch,” noted technology analyst David Gardner.

Revenue for the quarter that ended December 31st rose less than one per cent to $1.28 billion from $1.27 billion a year earlier. All in all EA earned $201 million or 63 cents per share. The expectation was $184 million on sales of $1.27 billion. EA expects the fiscal year 2007 to be even more successful than last year.