(picture from adweek)
Electronic Arts, after poor performance during the holiday season, has lowered its projected profit outlook for 2010 to around 40 to 55 cents per share. This falls quite far under their previous estimates of between 70 cents and one dollar per share.
EA blames poor disk sales in Europe, which makes up about a third of their revenue, as well as a buyer preference shift toward games that EA distributes, but makes a much lower profit margin on.
Financial analyst Michael Pachter said that the company was blaming too much on the economic environment, and that they need to figure out why people don't want to buy their products. Well... I'm glad somebody said it.
EA blames poor disk sales in Europe, which makes up about a third of their revenue, as well as a buyer preference shift toward games that EA distributes, but makes a much lower profit margin on.
Financial analyst Michael Pachter said that the company was blaming too much on the economic environment, and that they need to figure out why people don't want to buy their products. Well... I'm glad somebody said it.
