Lazard Capital analyst Colin Sebastian has dropped his financial enthusiasm for EA explaining that several franchises are crunching numbers lower than expected.
Need for Speed: Undercover, Mirror’s Edge and Rock Band 2 are all underperforming this holiday. He’s lowered his Q3 revenue estimate from $2.07 billion to $1.23 billion.
He says that Lazard Capital ”believe several EA titles are tracking below plan at retail this holiday, including Need for Speed Undercover (with disappointing reviews), new franchise Mirror’s Edge, and Rock Band 2.”
However he adds that ”solid sales of Dead Space, FIFA 09, and Left4Dead are helping to offset the weaker titles, in our view.”
”We believe further cost and franchise reductions are likely,” meaning more jobs heading for the hangman’s noose.
”Importantly, we believe EA is continuing to review its cost structure and franchise base, and it is possible that management will announce further cuts in headcount and the development pipeline (including existing franchises) over the coming quarters.”
Electronic Arts to downsize even more?Source: VG247
