Medal of Honor fails to cash in
Electronic Arts said that it will make a lot less dosh than it predicted thanks to the fact that people were not interested in playing its new “Medal of Honor" title.
In a statement EA said that the industry was struggling with flagging demand, although we would have thought spelling the word "Honour" correctly might have assisted sales. EA forecast revenue for the year to end-March of $3.8 billion to $3.9 billion down about 13 percent at the mid-point.
Chief Financial Officer Blake Jorgensen said the earnings forecast had been adjusted downward, to take into account uncertainties in the seasonally weaker March quarter. He said that the economy is not stronger and it is too little early for me to know how strong the market's going to be so he brought the company guidance down slightly just to make sure we're prudent.
Analysts think that Electronic Arts is being "overly conservative" with its guidance after its big holiday release "Medal of Honor: Warfighter" underperformed. Word on the street is that they were a bit shell shocked that the game tanked. The latest "SimCity" will launch in March, and action-horror title "Dead Space 3" is due next week.
New PlayStations and Xboxes which are expected later this year could also help the EA considerably.