Electronic Arts, Inc (ERTS)EA cuts outlook on weak holiday salesReuters - December 9, 2008
Submitted by apujanata (14935)
at 3:06PM PST on December 9, 2008
EA warned that its fiscal 2009 profit and revenue will fall short of already-low forecasts due to disappointing holiday sales of its video games in North America and Europe.
Share price down 10 %.
EA had already slashed its fiscal 2009 estimates in late October, blaming slowing demand at retail stores and a delay in the release of its latest "Harry Potter" video game.
1
Interesting comparison with other game companies in the article :
In contrast, smaller rival Take Two Interactive Software Inc (TTWO.O: Quote, Profile, Research, Stock Buzz) and Xbox game console maker Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) told the Reuters Media Summit last week that holiday game sales were better than expected despite the recession.
He said EA has been hit by market share gains by Nintendo Co Ltd's (7974.OS: Quote, Profile, Research, Stock Buzz) Wii, which publishes most of its own top selling games. He also pointed to tighter inventory management at retailers who do not want to overstock during uncertain economic times.