EA Share Price

[hereschenes]

Hi guys,

By way of brief introduction, I've been a lurker here for some time, and a fan of NBA Live on PC since NBA Live 95. I've played every game except for 06 because it didn't sound like it improved on 05 in any way that was important to me. I've ordered 07 (I'm in Australia) but am sweating on a patch release, given all the horrible reports.

So, I just thought I'd share this article I came across:

http://www.redherring.com/Article.aspx? ... licMarkets

Apologies if it has already been posted elsewhere, but I haven't seen it. If you can't be bothered reading it, then here's the tidbit of info you will probably find most interesting:

(EA) Company stock nosed down nearly 3 percent to $54.21 in recent trading, but at least one analyst says the slip has nothing to do with DICE. “The stock is down on NBA Live getting lousy reviews,” said video game analyst Michael Pachter of Wedbush Morgan Securities, referring to the company’s latest basketball title.

If the poor reviews of NBA Live (and hence poor sales) are going as far as to negatively affect the EA share price, then I think we can be fairly confident that there is a good chance of there at least being a PC patch to restore some sense of credibility (and investor confidence) for EA. Not sure what they're supposed to do about the X-Box and PS2 releases though. Recall them, I guess!

Cheers,
Ben.

[J@3]

Geez that's great news, I wasn't sure what impact, if any, it would have but there's no way they can't do something about the problems now if it's affecting the shares.

[koberulz]

and people have the nerve to insist that there's been no progress.

[funk99]

Nice stuff mate and good find. EA will be dumb not to put out a patch now. If they dont i think they will consider on Battlefield 2142. HAHA This is what u get ea

[maceo24]

This is pretty damned cool. Monitor this, I'm positive its not done falling yet. I hope that the higher ups are actually looking at whats wrong with the game, instead of just reading the bottom line of "this needs to be fixxed." If they are, I wouldn't be surprised if the ea canada gets pulled off the series for next year. Honestly i think that would make the biggest difference in the quality of the game, finding a crew that that is as enthusiastic and loyal the the real-life game of basketball as we are. I wouldve quit my job If i knew that my name would be associated with the crap they slapped together this year.


Bottom line, this impacts EA more than us bitching and petitioning EVER could.

[artestfighttrainer]

Top Find Hmm I'm thinking if EA still doesn't want to bring a patch out and don't want their share price to fall they'll most probably move EA Canada to India. Oh shit I'm giving them ideas.

[alexboom]

please delete this post, i was completely off, thanks

[---]

Great find

and people have the nerve to insist that there's been no progress.

Yeah I did say that. You think that what I said to EA would make people buy Live 07??? Because you said that I was reversing all progress towards a patch coming out... I havn't heard anything at all about any patch coming out. I hope there is, but I havnt heard of any.

[Matt]

3% is significant movement.

[The X]

3% is significant movement.

that it is....it seems like today is a day of good news after all

I wouldn't be surprised if something drastic happens, like a new development team or something....who knows....

[mrtistrm]

good news. I dont know about you guys. I hope EA stocks drop 30% and everybody stop buying EA

[maceo24]

lol dont do that! right now this is hurting some innocent people as well, i.e, private investors who just might have bought the game, putting them in our bout. 6 to 7 percent is enought to make some heads roll. Just imagine ive you owned a thousand shares of ea. Not only did you waste your money on the game, but now they're causing you to lose money too...

Not a pretty thought is it?

[Matt]

EA share price over the last 5 days.... closed at 54.84 today as opposed to mid 56 opening day thursday, when the game was available for a day or two

this graph, 12 months, suggests that EA will bounce back. It's been b/w 40 & 60 so it fluctuates a lot. Hopefully though, the timing of this decline is due to Live 07 and EA realises it and does something.

[maceo24]

I think may be little differnt than normal circumstances though... It has been quite sometime since the outcry on one of their games has been THIS large. I mean, Ea releases crap games every year (see Catwoman, Batman...lol). Live is (at least it used to be) one of EA's flagship properties. Something that they felt so strongly about that they buy liscensing exclusivity from major compainies to ensure that their competitors are at a disadvantage. With a failure of this size, so publicly criticized, I think its going to get worse way before it gets better. I truly believe some EA housecleaning may be in the not so distant future.

[hereschenes]

Just thought I'd link this article, by the same people. Includes some thoughts from nbalive.org's Ben Bailey.

http://www.redherring.com/Article.aspx? ... mer+Revolt

[---]

According to an email from EA spokesperson David Tinson late Thursday, the company did receive the letter and stands behind its product. Nonetheless, he says EA is in the process of addressing gamer concerns and will have an answer regarding a possible game patch "very soon."

I can't wait

[Matthew]

Stocks go up and down. Whats more significant is NBA 2K7 outsold both madden and live on the 360...

[hereschenes]

Stocks go up and down.

They don't just go up and down for no reason, though. They go down (theoretically) because investors feel that the underlying returns they will receive from the stock (all other things equal) have decreased. In other words - 2k outselling NBA Live may well be a fundamental reason for the share price to go down.

The only reason a public company like EA exists is to return profit to their shareholders. Less NBA Live sales means less profit, and therefore less return to the shareholders. If EA wants to reverse the trend, they're going to have to find a way to sell more titles (across the board, not just NBA Live titles). The only way they're going to do that is to start churning out stuff that is worth purchasing.

Anyway, as far as basketball gamers in the here and now are concerned, I guess you're right: 2k is the best option at the moment. For us PC-only gamers, a patch is our only hope.

[---]

Im a bit worried about next year. Theres a very slim chance 2k8 will arrive on PC (I doubt it but I hope so) and then theres 08. EA could just lose the whole current gen thing and go with next gen, but not in a way that is good for us. They could leave PC for a couple of years and work on the next gen version, that way they could have plenty of time to make a quality game that would make then alot of money (lets face it, PC sales can't be that great). After a while, they may come back with a next gen version for PC. Or, they may come out like old times and make an amazing game after getting this wakeup call that just because they are the only PC BBall title, it doesn't mean people are gonna stick with PC. As pissed off as I was with 07, I really hope that they put together a great game next year.

[Matthew]

But theres no definitive reason why they go up or down. It's all speculation.

[hereschenes]

But theres no definitive reason why they go up or down. It's all speculation.

[Matthew]

What part of that did you not understand exactly?

[hereschenes]

I thought I must have misunderstood what you were saying, because the statement "there's no definitive reason why share prices go up and down; it's all speculation" is patently false. Oh well.... remind me not to come to you for portfolio advice.

[Matthew]

Remind me not to talk to idiots as well.

Prove me wrong on what I said. If you can't, then shut the fuck up .

[hereschenes]

But theres no definitive reason why they go up or down. It's all speculation.

Stock prices go up today because the market believes that the net present value of future returns from that stock is more than they it was yesterday.

Stock prices go down today because the market believes that the net present value of future returns from that stock is less than it was yesterday.

QED.