Electronic Arts, Inc. (NASDAQ:EA)

All what goes up against all ods will drop sooner or latter

what come up must come down.

Have you ever tried to buy something from this company? It's an insane run around with a page-log set of instructions before you can enter your credit card number. Three times they told me my email isn't me . No way to say- yes it is! No phone number on the website. This is the Buffet rule of a know a business you invest in- sure wouldn't invest in this one!

Short term bumps from company profit earnings despite being the worst company in terms of customer support and products, it still is a cash cow.

I gave this one the red thumb on Investor Beat yesterday.

This company is quite possibly the worst company I have ever seen and their latest big release, Sim City, is a good example for that.

Sim City used to be a great franchise and managed to earn a lot of consumer goodwill. And then EA decides to force the traditional single player game into multiplayer and require a permanent internet connection. As an investor I can appreciate their attempt to improve the monetization, but they are doing it wrong, because they are alienating fans of the franchise in the process.
So, anti consumer behaviour is one thing. But when Sim City also goes down into history as the worst game launch ever, because there werent enough servers available for people to play on, eventhough it was soooo obvious that this could be a problem (since competitors have encountered similar problems in the past) I really start to wonder.

So the bottom line is: EA fails to monetize their games as well as ATVI (except maybe Battlefield 3), drives their consumers crazy (Sim City, Mass Effect 3...) and their organization/management is an obvious mess. And to add on top of all that: Their stock isnt even anywhere near cheap.
Pretty much the contrary what I am looking for.

The CEO's departure can only be a good thing. He has been a disaster for the company. The EA management culture focuses only on large revenue opportunities as opposed to trying to generate good ROI on a game by game basis which is the way it should be rationally run.

Negative goodwill surrounding SimCity 5 and DRM policies

CEO likes it. + I am a gamer and can't live without FIFA, NHL and FPS. It's my choice poison.

Recent Insider purchase:

Riccitiello John S; CEO; Electronic Arts; EA total of purchase: $497,701

Major video games are moving hard towards a blockbuster business model, like publishing of books and films. This is very bad. It turns production into a form of gambling on big winners to make up for the losses of the sea of failed titles. Add onto that the total inability to predict what will be big? The console market shrinks. The casual game market prefers smaller titles, with smaller teams. The big AAA titles, the MMORPGs, will all fade to black as the smaller indie studios dominate against a sea of mediocre major titles.

EA is successfully shifting focus to mobile games and game downloads. The Simpsons: Tapped Out is one of the most successful games recently with nearly 3 million active daily users. In its most recent quarterly report it showed a 46% gain in game downloads, and downloads now contribute nearly 50% of the company's revenues. The company should continue to expand mobile development, while maintaining its EA sports franchises to navigate the murky video game industry waters.

Christmas is coming. Seasonal pick, but it's still real.

Going down, and fast.

It really should specially in the long run. It's inevitable due to natural market direction.

EA makes a lot of crappy video games. A big part of their strategy is tied to their exclusive deal with the NFL for Madden. Low morale at EA is an old, old story. Console gaming is struggling, and EA is definitely not the best in its class.

next gen machines. still has top titles (mass effect 3, EA Sports etc).

EA disregards or does not understand the importance of user experience around its digital distribution and account management system. Absurd projections for Star Wars: The Old Republic will fail miserably if this does not change.

Huge in the gaming industry so the stock will eventually bounce back.