We all know that Electronic Arts (EA) is one of the world's leading game publishers. EA is known for publishing some of the famous role playing games (RPG) and sport themed games like Madden NFL, NBA Live, Tiger Woods PGA Tour, The Sims, and others. Unfortunately, the company's fiscal first quarter sales were down by about 63%.
According to EA, "the net loss for the three months ended June 30 was $132 million, or 42 cents a share, compared with a loss of $81 million, or 26 cents a share, in the same quarter last year."
CEO John Riccitiello said that these results was due to the declining sales of new console gaming platform like the PlayStation 3 (PS3) and Nintendo Wii.
During a conference call, Riccitiello said: "Point blank, this cycle is developing quite differently than the last cycle. The next-gen hardware build is going a little more slowly. The last cycle, EA was on the PS2 in a gigantic way and of course that platform ended up leading the market."
"This time, there's been some unexpected strength with the Wii and the PS3 hasn't - yet - performed as well as we expected it to. That probably has a bigger impact than any other factor on our margins. Great software sells hardware. These titles have a dramatic effect on Xbox 360 and PS3 hardware sales and we feel great about that."
Although EA lost their first quarter sales, the company still manage to get back on the track and surpassed Wall Street's expectation by 10% per share.
Meanwhile, EA will be releasing The Sims Spore, so check this blog for more updates. The gaming industry expects EA to release the game some time in spring of 2008.
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