Electronic Arts' CFO Grows Up Again
And we're also sitting with both Xbox and PlayStation 2 at $149. I think the last go-round, at price points of $129 and below, 60% of the volume was sold. I don't know that we're going to see that exactly happen this time, but what I'd tell you is, there is a lot of life left in this current generation of equipment, and the numbers are a lot bigger. And when those two lines really cross over is all going to be dependent on how quickly the console manufacturers roll it out.
Q: The two biggest games last year were Grand Theft Auto and Halo, both of which were essentially original intellectual property for both companies that came out with them. How important is it for you to develop more original intellectual property in house, as opposed to licensing the property?
I think ownership of IP is a huge deal. Continuing to build our portfolio of owned intellectual properties is an absolute strategic priority. In the context of EA, our business is one-third sports, one-third licenses and a third owned-IP. If we did a little over $3 billion in revenue last year, that's a pretty big owned-IP portfolio. Now, in the broader context, if that were to stand alone as a company, it would be pretty substantial. When you look at our owned IP, we have the Sims, the best-selling PC game ever, Need for Speed, Medal of Honor and Command & Conquer.
Q: There was a lot of chatter earlier this month about EA's investment in Ubisoft. Can you talk about what's going on with that investment? There seems to be a lot of hostility coming out of Ubisoft's chief executive suite toward EA these days.I can't speak for them and what and why they're saying it. I think our team has nothing but the best to say about Ubi and their employees. We admire their studios, we admire their creativity. We admire them. And why he's saying that, I can't speak for him, but from our standpoint, we can't say anything but the best.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV