Editorial: EA should stop buying developers and focus on making games
Great editorial from thegamereviews.com: Click this link for the full article. An excerpt follows.
"Everyone’s favorite Madden factory is growing, but it’s profits aren’t following suit....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. ... 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....According to EA’s investor website, net revenue for the fiscal year was $3.665 billion. ... 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."
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