The Old Republic to save EA?

While everyone is used to seeing the Star Wars galaxy saved on screen and in the games, could Star Wars be the one to save Electronic Arts? According to Cowen Group analyst Doug Creutz, EA has “missed the boat” this time around. This is because of the company’s recent inability to produce hit titles for the core gamers.

Creutz goes on to say that the upcoming MMO from EA’s child company BioWare is their “best chance” to save face and improve their profitability. However, he warns that even that might not be enough against the dominant shadow of World of Warcraft.

“We believe much of the blame for this goes to prior management, which failed to incubate new hit franchises heading into this cycle and let aging franchises decline,” he says. “Instead, dollars were spent on what were largely low-return projects,” he says. But all the blame is not on the previous management according to Creutz. The current management as well may be “guilty of some resource misallocation.”

“Aside from EA Sports and The Sims, EA really has a stable full of modestly-performing titles, with none offering the type of mega-hit R&D leverage offered by competing titles such as Call of Duty, Grand Theft Auto, or Assassin’s Creed“, he says. Let’s hope The Old Republic will be successful enough to put EA back on track.

Source: Analyst: EA Might Have Missed Its Shot This Cycle (Gamasutra)