The management at Electronic Arts are under increasing pressure, a recent cuts in the profits forecast was bad news then ex-employee Mitch Lasky too no prisoners criticising the current EA boss, John Riccitiello. Our favourite crystal ball gazer, Michael Pachter said,
“The EA management team has zero credibility with investors. They feel betrayed, and the comment I got most from investors today is ‘they don’t seem to care about investors’. This management team is running out of room to underperform. I think investor tolerance is gone. They don’t get another year to turn around.”
Sterne, Agee & Leach analyst Arvind Bhatia added to the criticism saying,
“Something is going to happen here – drastic costs cuts or them buying someone or getting sold. Something has got to give in the next 12 to 18 months.”
For many years Disney has been eyeing up EA so this may be the time they strike. It’s interesting to note that as far as gamers are concerned EA have turned around from a sequel spilling machine in to a company that was respected for changing its practises and giving us the likes of Dead Space, Mirrors Edge and Dante’s Inferno. Unfortunately EA investors aren’t happy so we may see EA going back to the sequel churning behemoth it was. SadPuppyFace.