For Electronic Arts, It's Game On
These are grim times in the world of video games. Sales of video-game hardware, software and accessories have fallen for seven consecutive months, according to researcher NPD Group. Yesterday, Microsoft (MSFT) reported that sales of its Xbox, the top-selling video console, fell to 1.1 million units in the just-ended quarter, down from 1.7 million units in the year-ago period.
Despite this backdrop of gloom and doom, Electronic Arts (EA) just had its best day in five months, popping 6.7% after comments from the company's CEO. At a technology conference yesterday, CEO John Riccitiello said that analysts were focused on the wrong elements, placing too much emphasis on in-store sales and not enough focus on online revenue growth potential. Riccitiello said he expects Electronic Arts' sales on Facebook and other social media platforms to jump by more than 40% this year, from $1.2 billion to $1.7 billion -- and up from zero just a few years ago....279 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.