They’ve lowered their guidance. Analyst Michael Pachter says it’s because they didn’t have what ”people wanted” and it’s their own fault.
EA says the revise number is ”primarily the result of weakness for EA and the overall packaged goods sector in Europe in December, and a product mix shift to lower margin distribution products in the December quarter, primarily in North America.”
Wedbush Morgan’s Pachter however says they shouldn’t point the finger of blame anywhere except at a mirror. He told Yahoo that EA ”did not have the products that people wanted” and should own up to that instead of ”blaming everything on the environment.”
”This company lacks introspection,” Morgan added. ”Their core business is not performing well and they can’t explain why.” EA has already cut its global workforce by 17 percent, snipping around 1,500 people, but also paid $275 million to get Playfish Inc.
EA now forecasts fourth quarter revenue between $1.23 billion to $1.25 billion.
Source: VG247
