Lagging PS3 Sales Hurt EA's Margins

Electronic Arts is still a staunch supporter of PlayStation 3, but the firm said Wednesday that slow sales of the console are a prime reason for shrinking operating margins.

"Point blank, this cycle is developing quite differently than the last cycle. The next-gen hardware build is going a little more slowly." He said that last cycle, EA was on PS2 in a "gigantic way," and of course that platform ended up leading the market.

"This time, there's been some unexpected strength with the Wii and the PS3 hasn't--yet--performed as well as we expected it to. That probably has a bigger impact than any other factor on our margins."

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deepujatt20053913d ago

i thought
PS3 sales got better...

drtysouf213913d ago (Edited 3913d ago )

all this is being said before the NPD numbers for July are released. And even when they are it'll still take a few months to see if the price cut has a permanent effect. I think it will though with the release of some great titles coming this fall.

nasim3913d ago

with the ps3 price cut sales have got better

but before JULY ..sales were not so good.

Now ps3 is beating x360 every week by a margin of 60 000 units on a GLOBAL basis

WIIIS13913d ago

When you're rockbottom, the only way is up. And even then, they had to use smoke and mirrors to start the climb up.

Loudninja3913d ago

Lagging software from EA hurt the PS3 as well

Marceles3913d ago

Yeah I agree.

"It's in the game", step your game up EA

Daver3913d ago

I can't agree more with you loll Stop the laziness EA and maybe you are gonna see your profit go up.../sigh Lazy developpers

Hatchetforce3913d ago

Absolutely correct. The new head of EA sports isn't likely to help the issue either.

rogimusprime3913d ago

EA can go swallow a fatty.

There's no reason the ps3 version of any game should run at 30fps while the xbox version runs at 60.

This is what those nerds get paid to develop for. They didn't complain when they were getting fat off of all the cash the ps2 brought in during the last gen.

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the_round_peg3913d ago (Edited 3913d ago )

He's going over to EA when the business is going downhill.

Hatchetforce3913d ago

Yeah and look at the 360 while he was there. It went from number 1 way out front to being just 600,000 units ahead of Wii. It went from good sales to a 60% drop. He ran Sega Dreamcast. A great console. Uh oh, I see a pattern developing...

drtysouf213913d ago

"the PS3 hasn't--yet--performed as well as we expected it to". I'd like to see all these major companies statistics on how well they thought the PS3 would do compared to how its doing. Well the pricecut has had a positive effect so hopefully "lagging sales" as put it will be a mute point from here on out.

Lord Anubis3913d ago

"Great software sells hardware," Riccitiello said.

then why pushing titles to generate a small profit when you can push quality titles and double the sales.

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