If you click on a link and make a purchase we may receive a small commission. Read our editorial policy.

Sebastian slashes Q3 EA estimate, says more cost cuts to come


Lazard Capital's Colin Sebastian's significantly dropped his outlook on EA, saying several holiday franchises are tracking lowere than expected and that more cost-cutting is likely to be announced in the coming quarters.

"Specifically," he said in a note this afternoon, "we believe several EA titles are tracking below plan at retail this holiday, including Need for Speed Undercover (with disappointing reviews), new franchise Mirror’s Edge, and Rock Band 2. Solid sales of Dead Space, FIFA 09, and Left4Dead are helping to offset the weaker titles, in our view."

The analyst reduced his Q3 revenue estimate from $2.07 billion to $1.23 billion.

"We believe further cost and franchise reductions are likely," he added.

"Importantly, we believe EA is continuing to review its cost structure and franchise base, and it is possible that management will announce further cuts in headcount and the development pipeline (including existing franchises) over the coming quarters."

Support VG247

You give us money, we give you an ad-free reading experience, merch discounts, a newsletter every month, and elite status amongst your friends.

See more information

More News

Latest Articles

VG247 logo

Buy our t-shirts, yeah

They're far more stylish than your average video game website tat.

VG247 Merch