Analyzing EA's Titanic Loss

Leigh Alexander, who is now tasked with writing Kotaku’s more in-depth think pieces, has a nicely detailed analysis of Electronic Arts’ financial performance in fiscal 2008. She writes:

Despite having 27 titles that sold over one million units during the year and a total $3.7 billion in sales, that loss on the quarter was only a portion of the company’s overall $454 million loss on the year, a hefty blow after last fiscal year’s $76 million profit.

Another interesting tid-bit wedged into the context for the hit is this bit of jockeying with Activision over top-dog status in the US:

While Activision recently said it’s the number one publisher in North America in dollars, EA says that its 19 percent market share in the region makes it the leader; EA’s market share in Europe is 20 percent.

As usual, the analysis is spot on and, yet again, helps dress the stage for EA’s play for Take-Two Interactive, makers of a little game called Grand Theft Auto. Read it.

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