EA's Quarterly Profits Down 31%

Posted by Zonk on Thursday February 2, 2006 @08:35PM from the no-love-for-madden dept.

On the heels of announced layoffs, Electronic Arts reported reduced profits for the just-ended quarter. From the Gamespot article: "Whether the layoffs propped up EA's stock is debatable, as its share price lost over 2 percent of its value, $1.18. Trading was heavy indeed--twice normal volume, in fact, with 7.3 million shares changing hands. And no wonder: Shortly after the US markets closed, EA announced its earnings for its third fiscal quarter, which ran from October to December 2005. Besides being of great import to stockholders in the world's biggest third-party publisher, the report was seen by many as being a bellwether of the game industry's overall health."

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It's all because Godfather was delayed by Jarnis · 2006-02-02 23:14 · Score: 5, Informative

Their profits tanked, because their 'biggest' christmas title, Godfather, was delayed. Apparently it was so buggy and incomplete that even EA could not hash together a shippable build in time for holidays, and now it's been pushed back to late spring.

One 'major' title is easily 20-30% of their bottom line in a quarter.

Now the reason why they aren't improving otherwise is because they treat their customers like shit, and are ran by clueless idiots that chase the quick buck over long-term sales and customer loyalty - bit like every other megacorp on the planet.