EA could lose $80 million in revenue should NFL lockout lead to cancelled season

By Stephany Nunneley, Thursday, 9 June 2011 17:47 GMT

EA has said that revenue derived from its Madden NFL franchise could cause the firm to lose up to $80 million should the National Football League lockout leads to a canceled season.

Speaking with Bloomberg, EA Sports president Peter Moore told the financial new outlet that EA is currently working with the league as well as the NFL Players Association to “minimize the potential impact of a lockout-shortened season,” on sales of EA Sports’ NFL-developed games.

Moore estimated the loss could be as low as $70 million or as high as $80 million with the lockout’s impact hitting 35 percent of revenue, which is stark contrast to the potential loss of $165 million analysts predicted in the New York Post. Analyst Michael Pachter believes the impact could go as high as 50 percent of the sales Madden NFL.

“You do get concerned that the attention of sports fans goes elsewhere,” Moore said. “People not only get disenchanted, they get angry.”

Stock prices for Electronic Arts fell 63 cents, or 2.7 percent, to $22.72 yesterday on Nasdaq, yet shares in the firm are up 39 percent for the year.

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  • Madden NFL 12 good to go after NFL league lockout ends

    EA had previously stated that it could face loses of up to $80 million had the deadlock between the NFL league and the Player’s Association led to the cancellation of the season. Fortunately for the publisher, and NFL fans the world over, the game is most definitely back on.