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[sonycowboy]

http://biz.yahoo.com/rb/050715/media_electronicarts_stocks.html?.v=1

All this for the Godfather? Clearly there are high expectations for sales for this game, beyond what I thought it might do. Also spooked Wall Street as they believe it's a sign that next gen development may not be on track for the 360 launch (overall, not specific titles) such that 360 SW sales could be hurt.

EA stock down on The Godfather release
Friday July 15, 1:53 pm ET

SAN FRANCISCO (Reuters) - Electronic Arts Inc. (NasdaqNM:ERTS - News) shares fell as much as 5.5 percent on Friday, a day after the No. 1 video game maker said it was delaying release of "The Godfather" game until after the key Christmas holiday.

EA shares rebounded from a session low of $56.98 to $58 (now back down to ~57.70) in afternoon trading on the Nasdaq, as some analysts forecast the impact of the game's tardy delivery may be relatively muted, pushing revenue into the following quarter ending March.

"Whenever a game is delayed out of the holidays invariably some sales are 'lost' -- never to be recouped," Harris Nesbitt analyst Edward Williams said in a research note.

If nothing else changes in EA's release schedule, he said "The Godfather" delay could cost it as much as $100 million in lost revenue.

A lack of heavy-hitting titles during this year's holiday season could also help soften the blow to EA, some analysts said.

Silicon Valley-based EA, which is seen by Wall Street analysts as posting revenue of $1.8 billion in the December quarter, pegged the postponed release of the marquee title to additional work required to perfect the game's interactive elements.

Several analysts said on Friday they would wait to make any adjustments to their fiscal 2006 targets until later this month, when the company reports results of its first-quarter ending June.

Without giving specifics, EA also said "The Godfather" versions for next-generation consoles would follow at a later date. That news prompted concern there could be fewer than expected big titles to accompany the release of Microsoft Corp.'s (NasdaqNM:MSFT - News) new Xbox 360 game console, which is set for shipping in time for the holidays.

In the past, game makers invested heavily in titles for new consoles from companies, such as Microsoft and Sony Corp. (Tokyo:6758.T - News), only to see revenues fall because the new game players were first embraced by hard-core gamers, who make up a relatively small portion of the overall market.

Some analysts believe that, this time around, game companies will continue to invest in current-generation game titles that have larger audiences, while making smaller bets on games for next-generation consoles.

 

[Wario64]

 

[DarienA]

Stock is still higher than it was in the middle/end of mar. Anyone remember what that march drop was based on?

 

[Dr_Cogent]

Once again, another negative Xbox 360 thread started by you know who.

 

[sonycowboy]

Stock is still higher than it was in the middle/end of apr.

I wasn't implying their overall stock was in trouble, just how much WS seems to think of the Godfather and the Xbox 360 market later this year. (Which is interesting that they tied the two together since the 360 version is unlikely to outsell the PS2 version)

 

[thorns]

Godfather delay will hurt EA a lot.. It would have sold 1,5+ million easily on christmas, but in March I doubt it will sell that much. It still shocks me how this happened. EA certainly hasn't been on form lately.

Anyone remember what that march drop was based on?

They lowered guidance.

Spoiler

if you want to make some money in a year or so, buy ATVI

 

[sonycowboy]

Once again, another negative Xbox 360 thread started by you know who.

This thread isn't about the 360, you dillrod. Stop being so defensive. :lol

 

[teruterubozu]

EA has Madden for Xmas. It'll probably be the best seller for the holidays anyway.
Man, the line-up this Xmas bores me to tears.

 

[Dr_Cogent]

This thread isn't about the 360, you dillrod. Stop being so defensive. :lol

:lol

Did you miss the ?

I'm not on the defensive at all. I would say if that comment wasn't sarcastic, it would be on the offensive

And I would have to disagree - it does have to do with the Xbox 360.

That news prompted concern there could be fewer than expected big titles to accompany the release of Microsoft Corp.'s (NasdaqNM:MSFT - News) new Xbox 360 game console, which is set for shipping in time for the holidays.

You even went to the bother of actually highlighting that text. Ironic, isn't it?

 

[DarienA]

They lowered guidance.

Spoiler

if you want to make some money in a year or so, buy ATVI

Ah... thanks for the info... and the stock tip.

 

[Rocket9]

Once again, another negative Xbox 360 thread started by you know who.

It's more of a negative Wall Street thread

 

[bill0527]

What ??

I don't think they understand that most early adopters of the Xbox360 are gonna be hardcore gamers and all of us... well most of us, hate EA and don't buy many, if any, of their products.

 

[Wario64]

What ??

I don't think they understand that most early adopters of the Xbox360 are gonna be hardcore gamers and all of us... well most of us, hate EA and don't buy many, if any, of their products.

not all hardcore gamers are gaffers who hate EA

 

[Rocket9]

No but all hardcore gamers hates EA. In fact that's what makes someone a hardcore gamer!

 

[Solid]

Some analysts believe that, this time around, game companies will continue to invest in current-generation game titles that have larger audiences, while making smaller bets on games for next-generation consoles.

wonderful news

 

[Link316]

wonderful news

not for MS

 

[open_mouth_]

A next-gen Godfather at 360 launch would've been a nice boost, but it would've also taken away sales from other games, naturally. The remaining big hitters (saleswise) for 360 launch, imo:

Madden '06, PD0, PGR3, Ghost Recon 3, Call of Duty 2, NFS: Most Wanted, Oblivion

 

[NintendosBooger]

A next-gen Godfather at 360 launch would've been a nice boost, but it would've also taken away sales from other games, naturally. The remaining big hitters (saleswise) for 360 launch, imo:

Madden '06, PD0, PGR3, Ghost Recon 3, Call of Duty 2, NFS: Most Wanted, Oblivion

Wouldn't it hurt EA more to release the game so close to the launches of the other next-gen machines?

 

[bill0527]

Stock is still higher than it was in the middle/end of mar. Anyone remember what that march drop was based on?

Wasn't it based on the shareholder lawsuit against the executives?

I remember reading a few months ago about the shareholders suing the executives for not disclosing to them about the hardware shortages during the holidays.

 

[open_mouth_]

Wouldn't it hurt EA more to release the game so close to the launches of the other next-gen machines?

Not really. If it's a great game, it should be able to move mass units regardless. If the game is made better due to the delay, EA may be able to release it on 360 in April and then on PS3 in September and double dip. Plus, if the game is actually good, the long-term benefits of this new hit franchise will be worth more than any short term gain of releasing it half-assed.

 

[AirBrian]

Stock is still higher than it was in the middle/end of mar. Anyone remember what that march drop was based on?

They lowered expectations.

http://www.fool.com/News/mft/2005/mft05032203.htm

 

[ToxicAdam]

All the screenshots shown have been less than impressive. I am sure they did market research and all the numbrs came back bad. So they decided to tweak it. No big surprise. Happens in the movie industry all the time.

 

[Slo]

I find it frustrating that EA is basically being punished for delaying a game because of quality reasons.

 

[B E N K E]

I guess they couldn't make it in 9 months...

In all honesty I think Xbxo 360-owners will be less than impressed by The Godfather. It looks good on PS2, but the leap is just not big enough, not anywhere near big enough.

 

[VictimOfGrief]

I hope EA goes bankrupt in the next year.

 

[DarienA]

Wasn't it based on the shareholder lawsuit against the executives?

I remember reading a few months ago about the shareholders suing the executives for not disclosing to them about the hardware shortages during the holidays.

No as others pointed out they lowered their expectations... the announcement of that lawsuit did pretty much nothing to their stock price.

I guess they couldn't make it in 9 months...

In all honesty I think Xbxo 360-owners will be less than impressed by The Godfather. It looks good on PS2, but the leap is just not big enough, not anywhere near big enough.

That's going to be the case with alot of first gen X360 games that are port ups... of PS2/Xbox titles.

 

[Barnimal]

am i the only one who could care less about this game? who's buying 360 for EA games? and what casual gamer buying a 360 want GF? as long as madden makes is all is well. another worthless shot by you know who. yay! :lol

 

[BuckRobotron]

The Godfather always seemed to be up in the air as to when it would make it, whereas the new NFSMW and Madden seemed top priority for 360 launch.

If indeed EA is delaying The Godfather to shore up quality, more power to them. They take their lumps now, but this way they can avoid future articles akin to that which greeted Tomb Raider AoD or the Matrix game and why they may have been rushed badly. And again, like Tomb Raider, the quality of this game can also impact perception of the overall Godfather "brand" into the future. So they'd best get it right.

And another thought, that awful last James Bond game and its bad critical and sales reception may also be a lesson they took seriously.

 

[Any1]

Whooooooooooaaaa, hold on there MS! You mean to tell me that the Godfather will not be a launch title for the 360? I'm sorry but that game is the only reason why most of us were even entertaining the thought of getting a 360.

I'm calling it right now and you all can quote me on this. --------- Without The Godfather being a launch title, the 360 will die a quick and sudden death. ----------

Sorry MS but you can't seriously expect anyone to buy your new system without the biggest killer ap ever, that The Godfather is.

 

[Mayor McCheese]

Ow! @%#! My stock hurts!

However....I'm happy that EA finally made a decision to allow more time for quality. They've pushed out some real turds in the past just so they could please their shareholders by not missing a deadline. If they do this a few more times, people will get used to the idea and they will have better games for it. Look at Blizzard. How seriously do you take their release dates? But they have a great track record for quality. EA needs to lay off the licenses that force them to put out games on a specific day (sports can't be helped much, but lay off the movies). That's part of the problem. At least they aren't trying to time the Godfather with a release...

 

[Cerebral Palsy]

The Godfather is a big release?

 

[Agent Icebeezy]

The Godfather is a big release?

No

 

[KINGMOKU]

One can only hope that it continues down, and is the beginning of the end for the seller of recycled garbage, and horrid games in general.


I would love nothing more then EA to crash and burn.


All they do is sell SHIT to idiots.

I wonder what will happen when everyone can update thier rosters for Madden ONLINE, and no one buys the next incarnation of the exact same game? Can you say stock in toilet?

 

[Pseudo judo]

No one cares in the least about this game. It's not discussed with any anticipation in any forum I've been in and the only time it's ever mentioned is when analists put in their 2 cents and forum goers use it as an example of EA's pension for producing turd laden titles. The only EA game I'm slightly interested in is NFS:MW and even that will be a rental and not a purchase.

FU EA!

 

[Mayor McCheese]

One can only hope that it continues down, and is the beginning of the end for the seller of recycled garbage, and horrid games in general.


I would love nothing more then EA to crash and burn.


All they do is sell SHIT to idiots.

I wonder what will happen when everyone can update thier rosters for Madden ONLINE, and no one buys the next incarnation of the exact same game? Can you say stock in toilet?

Although I agree that they are a sequel factory in a lot of ways, they have some of the most talented people in the industry. Their decisions to churn out iterations is a financial one, not unlike the movie industry's penchant for sequels. They are safer. But that doesn't mean they are total shit. Madden is arguably the best sports game there is. Although I hated the Sims, the rest of the world seemed to like it and it was pretty original. Def Jam, SSX, Burnout, etc. are all great games. EA is just like big movie companies that create schlock like Armageddon. If you don't like it, don't buy it. But why would you want them to crash and burn? I'd wager that EA is largely responsible for giving the game industry credibility with the rest of the non-gaming world.

 

[Mayor McCheese]

The Godfather is a big release?

This is EA's first foray into rated M territory and their first open world game. It's their answer to GTA. It's a big release in those terms. Will it be fun? Probably in a vanilla way, like the rest of their shit.

 

[Solid]

Madden is arguably the best sports game there is.

:lol :lol maybe for the average american but in the rest of the world there is only one sports game, and that is:

 

[Mayor McCheese]

:lol :lol maybe for the average american but in the rest of the world there is only one sports game, and that is:

That's why it's arguable. I don't play Madden at all (did on the SNES way back). But it sells like 50 motherfuckers and has an underground following in addition to it's mainstream-osity.

 

[Marty Chinn]

I find it frustrating that EA is basically being punished for delaying a game because of quality reasons.

My thoughts exactly as I was reading this. It's crap like this that makes me hate the stock market because that's what tends to drive business decisions.

 

[bitwise]

This is EA's first foray into rated M territory

 

[Synth_floyd]

Yikes, what's with all the EA hate? EA is one of the reasons that the videogame industry is doing so well. Their games sell and keep selling which means apparently PEOPLE LIKE THEM. If EA somehow goes bankrupt within the next year as some of you are hoping then the industry as a whole will hurt. Nobody forces you to buy their games but I don't understand all this acrid spite for the most successful third-party publisher in the history of videogames.

 

[Il Comodino]

:lol :lol maybe for the average american but in the rest of the world there is only one sports game, and that is:

Quote

what Kind of sports is American Football ? :lol

The Europe football is the real sport

 

[Suikoguy]

Yikes, what's with all the EA hate? EA is one of the reasons that the videogame industry is doing so well. Their games sell and keep selling which means apparently PEOPLE LIKE THEM. If EA somehow goes bankrupt within the next year as some of you are hoping then the industry as a whole will hurt. Nobody forces you to buy their games but I don't understand all this acrid spite for the most successful third-party publisher in the history of videogames.

But, thats the thing. EA will burn out the industy if they keep releasing so many rehashes and sequals. There needs to be new IP's to keep the industy interesting.

 

[Chiggs]

The Godfather is a big release?

My thoughts exactly.

 

[blackadde]

Yikes, what's with all the EA hate? EA is one of the reasons that the videogame industry is doing so well. Their games sell and keep selling which means apparently PEOPLE LIKE THEM. If EA somehow goes bankrupt within the next year as some of you are hoping then the industry as a whole will hurt. Nobody forces you to buy their games but I don't understand all this acrid spite for the most successful third-party publisher in the history of videogames.

Bullfrog, Origin, Westwood, Maxis ...

 

[Agent Icebeezy]

Bullfrog, Origin, Westwood, Maxis ...

Basically, if you were a PC gamer in the 90's, you have some angst against Electronic Arts, it's fuckin principle

 

[COCKLES]

No shitty licenced EA Godfather game for Xbox360?

Well fuck me.

(cancels preorder)

Who the fuck do MS think they are peddling shit like Gears of War and PG3?

 

[El_Victor]

Yikes, what's with all the EA hate? EA is one of the reasons that the videogame industry is doing so well. Their games sell and keep selling which means apparently PEOPLE LIKE THEM. If EA somehow goes bankrupt within the next year as some of you are hoping then the industry as a whole will hurt. Nobody forces you to buy their games but I don't understand all this acrid spite for the most successful third-party publisher in the history of videogames.

They fucking killed Ultima IX (and Orign), that's like raping a child.. over and over again (see: ruining UO)

 

[Unison]

Right on... EA's destruction of Origin, Maxis, Bullfrog & Westwood is the fuel that will forever fire my EA hate. ... That and the knowledge of what an innovative publisher they used to be in their own right before they turned into a corporate behemoth.