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Note to EA: “Stop Buying Developers, Make More Games.”
Posted by Jeff Wayman, May 15, 2008 13:46

EA is BIG. So big in fact, that by most calculations, in April of 2022, EA will launch Skynet, at which point all computers will retaliate due to years of abuse, and a nuclear holocaust will be imminent.

Putting robot revolutions aside, we can answer more important questions; just how did EA get so big? Was it by producing simply the best games the industry has seen? Well, they have been behind a number of hits, but they have also muddied the gaming waters with plenty of trash. Truth-be-told, EA is big because they have forced purchased a number of successful development studios. Like a coked-up pop singer, EA is well-known for its binge-worthy acquisitions. In fact, last year’s acquisition of VG Holdings Corp. (Bioware/Pandemic), read Mass Effect and Mercenaries 2, was just finalized in January of 2008.

Unfortunately, all that consumption means a steady flow of green is leaving a gaping hole when it comes to EA profits. According to EA’s investor website, net revenue for the fiscal year was $3.665 billion. I’ll write that again, just in case you missed it: EA’s net revenue for the recently closed fiscal year was 3.655 billion pesos dollars. This is great news, right? Apparently not, since EA also posted a $454 million loss. This announcement then translated to a loss of $1.79 per share of EA common stock.

Dry those tears though, shareholders, because EA will definitely be back to produce Madden 2021. In a Next Generation article, EA CEO John Riccitiello stated, "We’re very pleased with our revenue growth, but not yet happy with our profit margins." Yeah, perhaps, just perhaps, if EA focused a little less on the relentless amount of brow beating to garner Take-Two Interactive (2K/Rockstar), read Bioshock and GTA IV, they could sell a few more copies of Boomblox, and get WarHammer Online ready.

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