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"Electronic Arts has missed the current hardware cycle" - analyst

Gamesindustrybiz: EA has "missed the current hardware cycle" and is unlikely to return to historical operating income margin levels "anytime soon", according to a new report by analysts at Cowen Research.

In an occasionally damning critique of EA's plans and guidance the report states that: "We believe that following serial earnings disappointments, Electronic Arts now deserves a lower valuation premium than the company has historically enjoyed."

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FreestyleBarnacle3068d ago

The prediction is for 400 thousand for Brutal Legend and 800,000 for Dante's Inferno. Seeing as the last games from these respective studios were Psychonauts and Dead Space which were great but nobody bought these sound like reasonable estimates. However, isn't it time these guys both had a huge hit?
The challenge is to make that happen.

Superfragilistic3068d ago (Edited 3068d ago )

Brutal Legend will sell well over 500K and in my mind should approach 1m. EA is backing it with serious mainstream promotion (as opposed to ME and Dead Space last year), and don't doubt the market's appetite for heavy metal and particularly Jack Black.

Dante's Inferno on the other hand I'm not so sure, although the familiar name and a studio with the 1m selling Dead Space is likely to help.

Most interesting though is the estimate on Mass Effect 2 of 1.1 million compared to Dragon Age's 2.1 million. It suggests that Mass Effect 2 (unlike Dragon Age) is still a PC and 360 only affair... at least for now.

free2game3653068d ago

What are you talking about? Mirror's Edge and Dead Space both recieved a lot of advertising. They just flopped.

Shortstop3068d ago

Fix madden and the sales will come back. I owned all of last generation's Maddens, but I've only owned one from this generation and I returned it well early because it sucked.

YeOldeGamer3068d ago

Madden the problem. In fact, considering how little effort goes into each installment vs. the sales...it's probably their most profitable franchise.

The biggest problem for EA, is that they've invested too much into the Wii, and even the PS3....with not enough return.

"The report is particularly despondent about third party sales when revenues for Guitar Hero and Rock Band are ignored, where the top 5 per cent of third party titles for the Wii sold an average of 860,000 units, compared to 2.5 million on the Xbox 360 and 1.2 million on the PlayStation 3. "

jessehaysfl3068d ago

amazing, we all used to bust on EA for buying up everything and putting out crap, Now EA puts out well thought out ip's and all the analysts bag on them.....I never thought I would but I feel sorry for EA they tried hard to please us with Mirrors edge and Dead Space, sucks that no one in the media thinks they are solid attempts at pushing the industry along, bummer all the way 'round.

Superfragilistic3068d ago

The greatest irony is that Activision has become the old EA and analysts love em for it! lol

Lets see what they say when their core franchises die out - Guitar Hero I'm looking at you! lol

yoshiroaka3068d ago

i havent really though about it but yea it true they have been bringing out some good original games. Dead space and Mirrors Edge were great and even Army of Two is some good split screen fun.

I hope Dante's Inferno turns out to be good and not just a wannabe God of War.

jessehaysfl3068d ago

yeah even skate is a good new ip...I hope EA gets some credit.

kevnb3068d ago

before something from these devs catches on huge.

bigjclassic3068d ago

and it is showing overall in the profit margins. EA is not taken seriously anymore because of some questionable moves in the past, but they can return to form. Give the Wii a proper Madden game, Show the PS3 and 360 equal love in hardware performance and use Wii motion plus.

They can still make a buttload of money. How about Road Rash HD?

Superfragilistic3068d ago (Edited 3068d ago )

Yeah they've just been slow to the party.

But watch them milk it this year. They've laid the foundations of new franchises over the last two years and now the hardcore sequels and fully peripheral focused Wii games are ready to go. Not to mention the commercial potential of Star Wars: The Old Republic.

This analyst might be eating his words come Christmas. ;)

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