Tue, Apr 27, 2010 | 20:55 BST
Electronic Arts is number 494 on Fortune 500
Electronic Arts has been listed as one of the top companies in the US by Fortune Magazine.
Landing at number 494 on the prestigious Fortune 500 list, it is estimated that the company is worth $6.2 billion.
Previously ranked at 590 due to restructuring, and lower than expected quarterly financials over the past year or so, analysts believe that all the changes and cost cutting maneuvers will benefit the company in 2010.
“We see evidence that the company is not doing the same things over and over again: lower headcount, fewer facilities, fewer games, and a growing digital business,” offered Michael Pachter, who believes that EA is being conservative in its estimates for the financial year’s end.
“This time, we think that EA is on the right path.”
EA has said in the past that it plans to release fewer third-party games so that it can focus more on internal titles – which you can add Respawn to that bit of the mix now as well.
Good show straightening out then, we say.
Via Gamasutra.
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Posted in: America, EA, Financials, Retail, Trade
Tags: fortune 500
4 comments
#1
AHA-Lambda
27/04/10, 9:04 pm
So it IS higher than Activision then right? =)
BTW doesn’t pachter keep saying shit about EA usually? >_>
#2
DeSpiritusBellum
27/04/10, 9:34 pm
*Whoopsy* I said EA dwarfed Activision, but that’s totally false. I’ll go read stuff now, kkk.
Currently EAs shares have lost about 46% of their value in a year, where Activisions has only lost about 25% of theirs, and when you compare the two, Activision has managed to recover a lot more of their losses than EA, who have managed to rise initially and dip right back towards the bottom line.
I’m no broker, but if I was a betting man I’d go with the business that’s improving, rather than simply the biggest one.
The less ducks, the easier they should be to get in a row.
#3
The_Deleted
27/04/10, 10:48 pm
The IW abortion can’t have helped. If that many people left any other business in such large numbers in quick succession you’d have ask question about their business practice.
Looks like EA could soon be kicking ass again in two years or so. And hopefully this new ‘For the Gamer, By the Gamer’ ethos will set a precedent. IW made big money for Activision. Who, in turn seem determined to kill any integrity for an IP stone dead. In three years MW /CoD will be a fond memory. Swallowed by a slew of shitty sequels and blueprint copies.
It’s just a pity Activision own the Transformers IP. They have me by the balls there, I’m afraid!
#4
DeSpiritusBellum
28/04/10, 1:23 am
@3 I think you’re mostly right, if Infinity Ward doesn’t get salvaged in some way, that’s gonna hurt Activision, but keep in mind that Activision fired the studio heads – it was a cognitive decision – and the only possible response to what they were (most likely) doing.
Investors are gonna look at that move and be pleased, although Infinity Ward melting down isn’t ever going to be good for the owners.
EAs “For the gamer, by the gamer” is what you call marketing. I think their nature clearly shows on DLC. They may not charge you for maps (altough they didn’t say anything about a packaged deal including maps) but they will charge you a dollar per skin for your models. They’re just exploiting the situation with one hand and screwing you with the other. Nice strategy, though.
However, any way you look at it, Activision have been dead on with their franchises. They’ve cut the dead weight and come out stronger for it. Regardless of their reputation among gamers, investors clearly believe in that, more than EAs efforts for the time being.
Only time will tell though. Right now investors seem to be picking Activision, but the price on stock is always temporary.