This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Electronic Arts' CFO Grows Up Again

It negatively impacted the bottom line to some extent. That's business, and it's what you have to deal with.

Q: What are EA's investment priorities right now?

I think your best, close-in returns are always going to be where the market's already established. Our first priority: deliver great entertainment. Secondly, it's to be ready for the next generation. The critical thing for us is that we are ready with entertainment that utilizes that technology horsepower when those consoles emerge.

Q: Why is that so important?

A: I think that's what customers want. Transitions are where you really set the standard for the next several years of your business.

We just think it's the way you build a lead. If you look at our shares the last go-round in transition, our segment shares improved very dramatically by really being the leader. Making the necessary investments today, we'll be ready for this next generation of technology.

Q: But at least initially, aren't the games you put out for the new platforms essentially loss leaders, because there's not a big enough installed base of users?

I don't think you can look at it like that. You can say that, but look, this is about sustaining what will continue to be a very strong business, and we have to take a much longer-term perspective than how many Xbox 360 units are sold in the fourth quarter of this calendar year. This is about the next five years, not about the next two quarters.

Q: When do you expect revenue from next-generation console games to start moving the needle for EA? When will they start to replace sales of PS2 games?

I'm just not ready to forecast that. But what I would say without being quite that specific is the PlayStation 2 is going to be around for a while. And people are going to continue to buy that entertainment. I can show you a chart on just how strong pricing has held up for the top 20 titles in the marketplace. And the reason why it's holding up that strongly is because of the quality of the entertainment. People still love the stuff.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs