EA Announces 3rd/4th Quarter Warning News

EA today delivered the first major sign that Christmas 2005 may not be a happy time for all, particularly those with weaker then expected holiday schedules.

Typically the Christmas period is a crucial time for videogame publishers however today EA has announced that its expectations for net revenue, and subsequently earnings per share, for the third and fourth quarters and the fiscal 2006 year to be "well below" original forecasts made on November 1st 2005.

EA has blamed the downtrend on "unanticipated market declines" in both North America and Europe, providing further fuel to the increasing concerns and uncertainties during the industry's transitional period between generations. Despite the announcement EA has today achieved the UK Christmas No.1 with Need for Speed: Most Wanted and currently has four titles within the Top Ten.

"Holiday sales are not meeting expectations," said Larry Probst, Chairman and Chief Executive Officer. "For the December quarter, it is likely the industry will be down double digits on a percentage basis."

Are videogames really less popular then what we'd assume; what's to blame, Xbox 360 shortages, a creativity crisis, the importance of uninspired brands and sequels; is Nintendo's vision of the future more important then before and are Reggie's sobering predictions actually coming to light?

Make sure to let us know what you think...