EA Posts Big Loss Due to “Lackluster Product Quality”
It seems that the favored whipping boy of Aeropause writer George, is having some financial issues as of late. This past quarter, EA posted a fat $195 million loss, which prompted Deutsche Bank analyst Jeetil Patel to downgrade the stock to a sell rating. One of the things that Jeetil pointed to was the fact that EA has been heavily discounting their product line after 4-6 months of retail release, which has cut deeply into profits.
Also, there was mention of “lackluster product quality” and “weak sell-through”, on major titles, while entering the holiday retail season. Titles like Orange Box, Rock Band and even Crysis, while looked at as big sellers, are not owned by EA, which cuts down on the profit from these titles.
via Joystiq
Now with all of this bad news, I have to wonder if they saw this coming and it promoted the purchase of Bioware, a company known for quality in all of their titles. Will Bioware be the saving grace of EA? Only time can tell, but the track record is not looking good at this point, when you look at past purchases like Bullfrog, Origin Systems and DICE.
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