Troy Wolverton

Electronic Arts Faces Siege From Below

 

EA could see longer-term benefits from another development: the release of Nintendo's upcoming GameBoy DS handheld device. EA plans to have several of its top titles, including Madden, available for the DS as soon it's released later this year.

"Hopefully, EA can start to exploit the handheld market. That's a long-term good for them," Spiegel said.

Perversely, some investors are hoping for EA to report a disappointing quarter or offer subpar guidance, not because they don't believe in the company, but because they want to get into the stock.

"I pray for some sort of big pullback, because I think the company's amazing," said Matt Kelmon, a fund manager at Kelmoore Investment. (Kelmon does not have a position in EA.)

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