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Analysts: Game biz solid, but EA poor at estimating, managing cost

Electronic Arts warned investors yesterday that its fiscal 2010 will come in lower than it expected, chalking the estimate miss up to weak retail -- and promising to compensate in the long term with digital business. But many analysts feel the game business is performing solidly, and that the publisher's problem is mainly that it forecasts poorly.

EA, too, has solid performance potential and strong assets, says Wedbush analyst Michael Pachter, but investors are getting impatient with two straight years of missed estimates and a prolonged restructuring that even CEO John Riccitiello admits is 'taking longer' than EA expected. The publisher's stock has plunged 8.43 percent (as of press time) on the bad news.

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3592d ago
3592d ago