Take-Two Gains Ground on Electronic Arts
But those cuts could pressure EA's revenue and its bottom line, analysts say. If EA sells 2 million copies of this year's NBA Live, for instance, it will have left $20 million on the table, noted McNealy.
That could translate into 5 cents a share on the company's bottom line, said Pachter.
Of course, not everyone is worried about Take-Two's challenge to EA. EA has been gaining market share in the sports genre over the past few years, fending off a number of competitors, said Jason Maxwell, who covers the video-game industry for TCW. Meanwhile, August sales figures indicate that both Madden and NFL 2K5 are doing well, he said.
"Everything else is conjecture," Maxwell said. Those analysts concerned that EA's going to lose sales due to Take-Two's strategy are "overstating the danger."Meanwhile, some question how long Take-Two can offer its ESPN games at bargain-basement prices. In the company's just-completed fiscal third quarter, for instance, NFL 2K5
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