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SBD/Issue 47/Sponsorships, Advertising & Marketing
Analysts Call EA's Expected Move To Cut Prices A "Bad Sign"
Published November 15, 2007
Electronic Arts is "cutting prices on sports games" including "Madden NFL 08," "NBA Live 08" and "Tiger Woods 08," a "bad sign going into the holiday season," according to analysts cited by the AP. Pacific Crest analyst Evan Wilson said that "14 games were affected, most of them sports games" for Sony's PlayStation 2 system. Wilson added that the price cuts "create a risk that [EA] will miss its [Q3] forecast and that it is facing greater risk this season than its competitors." Banc of America analyst Michael Savner indicated that sports titles account for about 40% of EA's revenue and noted that EA "cut the price quickly" on "NBA Live 08," which was just released in October (AP, 11/13).
HAWKIN' IT: MEDIAWEEK's Mike Shields reports Massive Inc. "has landed deals to represent ad inventory" in the "Tony Hawk Proving Ground" video game, as well as "Guitar Hero III." Verizon is one of the advertisers in the new Tony Hawk game (MEDIAWEEK.com, 11/14).