NEWS - Tuesday, February 20, 2007

EA Will Benefit From Next-Gen Growth

The paper predicts that EA will be a leading beneficiary as more mainstream consumers latch onto PlayStation 3, Xbox 360 and Wii in the year ahead; gamers who favor brands like Madden. The subscription-only reports suggests that EA will snap up a global market-share of 20%; roughly equivalent to its present North American share as calculated by Next-Gen. Last year EA’s sales were around $3 billion with profits of $240 million. This year’s figures are expected to be ahead, with the company predicting growth of around 15% following a strong Q2. Shares in EA are currently trading at around $50 but analysts like Michael Pachter are tagging the firm as a strong buy, with a predicted price of up to $65.


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