Analyzing EA's Titanic Loss

Posted by: Matt Vella on May 13

Leigh Alexander, who is now tasked with writing Kotaku’s more in-depth think pieces, has a nicely detailed analysis of Electronic Arts’ financial performance in fiscal 2008. She writes:

Despite having 27 titles that sold over one million units during the year and a total $3.7 billion in sales, that loss on the quarter was only a portion of the company’s overall $454 million loss on the year, a hefty blow after last fiscal year’s $76 million profit.

Another interesting tid-bit wedged into the context for the hit is this bit of jockeying with Activision over top-dog status in the US:

While Activision recently said it’s the number one publisher in North America in dollars, EA says that its 19 percent market share in the region makes it the leader; EA’s market share in Europe is 20 percent.

As usual, the analysis is spot on and, yet again, helps dress the stage for EA’s play for Take-Two Interactive, makers of a little game called Grand Theft Auto. Read it.

Thank you for your interest. This blog is no longer active.

 

About

No longer child's play, the booming global games market is worth billions of dollars. In Games, Inc., BusinessWeek Innovation writer Matt Vella and Tokyo correspondent Kenji Hall analyze emerging business trends in video games and interactive entertainment. They’ll examine everything from button-mashing, chart-topping, console games to serious games commissioned by big corporations to train staff. They’ll also map the evolution of expansive virtual worlds and go behind the strategies at companies that are turning play into big business.

BW Mall - Sponsored Links

Buy a link now!