An article on Forbes has listed 5 reasons why EA The Evil Empire is on a sharp decline in their stock market. Contributer Paul Tassi goes in on the gaming giant with quotes from EA CEO John Riccitiello and evidence hinted at people being laid off who worked on Star Wars: The Old Republic.
It seems like a big mess but Tassi lists 5 major reasons for the decline and they deal mostly with EA’s decision making in the games being released. Here’s a sample about Battlefield 3…
…Battlefield 3 sold well. Very well. In fact, it was EA’s best launch of all time, as the title sold five million copies in its first week. It was a very respectable number, and coupled with critical acclaim, it seemed like a big win for EA.
But there’s nothing quite like a Call of Duty launch. Modern Warfare 3, like previous COD games before it, shattered not only every video game sales record ever, but every sales record across any form of media. It sold 6.5M copies in a single day and got to a billion dollars in sales faster than Avatar. To put EA’s juxtaposed Battlefield launch in perspective, Michael Jordan might make $180K a day from endorsements, but despite how rich he may seem, Bill Gates could buy and sell him like he was nothing.
Simply put, EA does not have the capacity to compete with Activision’s biggest franchise, and coupled with their inability to tango with World of Warcraft as well, these are two huge categories they’re consistently losing. And that has never been more obvious than it was last year as SWTOR and Battlefield were direct assaults aimed at Activision’s top two properties, and for all their millions in development and advertising, they barely made a dent…
Check out the remaining Five Reasons EA is in Decline over at Forbes.com and weigh in on the comments.
