Top
60°

Analysts Question EA's Playfish Buy, Future Prospects

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."

Read Full Story >>
gamasutra.com
Oculus Quest Giveaway! Click Here to Enter
The story is too old to be commented.
darkmurder3726d ago

300 million for facebook games?

yog-sothot3726d ago

I guess there is money to be made there... There are more than 60 millions users of playfish games after all, maybe advertisement and micro transactions can become huge with such a base

I don't know if it's worth 300 millions though.

I am more concerned with the cancelled titles and the 1500 people fired... I hope they can find a job elsewhere, maybe in new independant studios ?

Anyway, it seems EA doesn't know what to do to see profit again. I hope they don't start acting too much like Activision (or like the old EA).