As Electronic Arts announces further restructuring and widening losses, analysts are confused by its $300 million Playfish acquisition, unclear on its game pipeline, and perplexed by its digital business focus.
Wedbush Morgan analyst Michael Pachter says that EA hasn't grown its revenues enough in the past year, thus necessitating another round of cuts. Still, he finds the company's approach perplexing:
"To date, game quality is up, with a remarkable number of highly rated games produced, and with several that are the best efforts by the company in years," he says. "However, after claiming to recognize the problems it faced with unproductive investment, it appears that there are still potentially unprofitable games in the pipeline."