Something went wrong at Electronic Arts this quarter: After a holiday season where everyone in the video game business reported stellar sales, the industry’s biggest player missed Wall Street’s revenue consensus by 14%.
ERTS reported revenue of $1.5 billion, up 17% y/y. But analysts were expecting $1.74 billion. The company posted a loss of $33 million, but that includes a hefty charge relating to a change in revenue recognition. Excluding that, the company would have hit 90 cents per share, in line with the Street.
More worrisome, ERTS acknoweldged that it had lost market share, and said it would push back the release of two big games — “Battlefield: Bad Company” and “Mercenaries 2: World In Flames.” And it’s also delaying a European version of its hit “Rock Band” title. Oh, and it cut back Q4 and FY guidance.
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