EA has said an anticipated decline in game sales at retail will be a drag on revenues next year, marking a pessimistic outlook for its 2010 fiscal year ending March 2011. As reported in Venture Beat, the announcement made on the publisher s third quarter 2009 earnings conference call surprised analysts. EA cited lower than expected sales during the quarter spanning the holiday season based on poor performance for its titles in Europe and lower margin sales in North America. It said it expects poor retail performance to continue next year, with not only sell-through of current titles but also preorders for upcoming games below expectations. The publisher said sales from digital distribution and online games were up, but not enough to offset the decline at retail and specifically the sales shortfall in Europe. EA chief John Riccitiello called the shift to digital distribution fast and dynamic but said it is taking a conservative view of the sector. But he added that EA is planning to introduce a massively multiplayer online game in spring 2011 that should significantly impact its earnings. The publisher said big titles in its fiscal year 2010 include a Sims console title, Dead Space 2 and FIFA World Cup. It also looked ahead to 2011 in highlighting planned sequels in the Medal of Honor and Need For Speed franchises. Read more at Venture Beat.
EA Pessimistic On 2010
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