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Electronic Arts Plays Losing Game

Posted on: Thursday, 28 July 2005, 00:00 CDT

Jul. 27--Gaming giant Electronic Arts has crashed to a loss on sluggish sales and delays in its latest offering, The Godfather.

EA, the world's biggest video games maker, was also hit by shortages of Microsoft's Xbox ahead of the release its next-generation console later this year.

The company, whose titles include Need for Speed and The Sims, lost $58 million (£33.3 million) in its first quarter compared with net profit of $24 million in the same period last year.

EA also predicted a worse year than expected because of its decision to delay its game based on the classic Godfather movie series until next year.

The industry is struggling to accommodate a changing console line-up from Microsoft and Sony -- including the latter's PlayStation Portable, to be released in Britain in September.

In the past, new console technology has disrupted the video game industry and led to painful losses. Chief financial officer Warren Jenson said some instability would be inevitable. "Count on it," he said.

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Copyright (c) 2005, Evening Standard, London

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ERTS,

Source: Evening Standard

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