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EA Reduces Forecast, Talks Xbox 360 goals, Rev/PS3 launch

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Striek

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EA Reduces Forecast, Talks Xbox 360, PS3 Issues

Game publishing and development giant Electronic Arts has announced that it expects net revenue and earnings per share for the third and fourth fiscal quarters and fiscal 2006 to be well below both the previous financial guidance provided by the company on November 1, 2005, as well as current consensus estimates.

In a fascinating conference call accompanying the news, EA's CFO Warren Jenson outlined the specific reasons that sales have been below expectations for November, and, EA believes, even further below expectations for December, commenting: "While we expect several positives, we have no reason to believe that this abrupt change in demand for current generation software will reverse itself."

[...]

Jenson then specifically cited the Xbox 360 launch, although commenting that "it's gone extremely well: in North America and Europe", he indicated that he and his colleagues "don't see [the Xbox 360] getting to the installed base numbers we expected." In addition, he mentioned the consumer belief that the PlayStation 3 may be launching in Spring 2006, noting that it's "causing some people to stay on the sidelines", even though EA believes that a second-half 2006 launch is much more likely for the console in America.

[...]

The EA execs touches on a number of other interesting issues, with Jenson admitting, over the entire industry: "If you take a look at the assortment of titles out there this holiday season...it's probably not as compelling a selection of titles as last year". However, Probst noted that EA seemed to be keeping its 25% game market share for 2005 on current-gen game platforms, and was looking at closer to a 30% market share on both the Xbox 360 and PSP, meaning that, though the company was doing relatively well, it was still down on expectations. Finally, the EA execs mentioned specifically: "Our expectation is that both the PlayStation 3 and Revolution will launch in calendar '06... our expectation would be the second half of calendar '06", meaning that the next-gen installed base can start to be built up starting next year.
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Mixed news for all there. Somewhat late launch for PS3/Rev, somewhat bad news for X360 not meeting forecasts, and current-gen market declining due.
 
Piper Jaffray also put out a report yesterday which said:

Piper Jaffray said:
BAD NEWS PASSES HALF-WAY MARK:
We believethat 50% of the bad news the sector is going to experience is now behind us. Looking forward, we see soft sales trends and risk to Street earnings estimates through June 2006. Revisions will be the result of deteriorating sales of current generation products, overpriced software, a shortage of XBX360 hardware systems,and a very late introduction of PS3 in 2006.
Click to expand...
 
As excited as I am for next gen, there's still so much this gen I have to play- and there are some big PS2 games coming next year, such as FFXII, KH2, MGS3:S, Rule of Rose, Dirge of Cerberus, Suikoden V, as well as the new Zelda for GameCube.

I'm in no rush to start this 'next gen'. Only two games on 360 currently interest me (RR6 and Condemned), not enough to get me to buy the console. There's still so much for Sony to reveal regarding PS3 and anything sooner than October for a US launch would just be icing on the cake for me. Revolution? I still don't even think it really exists. :D

Probably after E3 (maybe CES in Jan) I'll be much more ready to start 'next gen'.
 
Dammit Nintendo.

Tell us the frickin name of the system so these people start telling people it's Revolution so dumb people on the street can actually know what everyone else is talking about and people cant start to believe that a new Nintendo system actually exists.
 
John Harker said:
Dammit Nintendo.

Tell us the frickin name of the system so these people start telling people it's Revolution so dumb people on the street can actually know what everyone else is talking about and people cant start to believe that a new Nintendo system actually exists.
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If Nintendo calls their new system anything other than "The Nintendo Revolution", well, they're beyond retarded. There's so much meaning behind the name not just for Nintendo but also for the industry and market.
 
Mr_Furious said:
If Nintendo calls their new system anything other than "The Nintendo Revolution", well, they're beyond retarded. There's so much meaning behind the name not just for Nintendo but also for the industry and market.
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Too many letters/syllabels for the mainstream.

You really overestimate the average consumer thinking "Revolution" would ever be a widely accept product name.

Look at the names of cars and other products these days.
RSX. RAV4. i800. M3. iPod. Mini. Simple, easy. PS3. 360. Numbers, letters, acronyms.

Not deeply rooted, meaningful terms like Revolution.
Like NES or SNES or N64. GCN.

I expect like, Nintendo FSX. Free Style XTREME. Or something like that.
Besides, REVOLUTION is NOOOOOOOOT a sexy name.

You can't put a name like that on a sleek box like the Rev case.
 
we should get a better idea about PS3's launch plans @ CES.

I'm all for a Holiday '06 launch, though. Hopefully it would mean a more solid launch, which is always good in my book. :)
 
John Harker said:
Too many letters/syllabels for the mainstream.

You really overestimate the average consumer thinking "Revolution" would ever be a widely accept product name.

Look at the names of cars and other products these days.
RSX. RAV4. i800. M3. iPod. Mini. Simple, easy. PS3. 360. Numbers, letters, acronyms.

Not deeply rooted, meaningful terms like Revolution.
Like NES or SNES or N64. GCN.

I expect like, Nintendo FSX. Free Style XTREME. Or something like that.
Besides, REVOLUTION is NOOOOOOOOT a sexy name.

You can't put a name like that on a sleek box like the Rev case.
Click to expand...
Nintendo Entertainment System
Super Nintendo
Nintendo Gameboy
Nintendo Virtual Boy
Nintendo 64
Nintendo Gamecube
Nintendo Gameboy Advance
Nintendo Gameboy Advance SP
Nintendo DS
Nintendo Revolution

Next?
 
Mr_Furious said:
Nintendo Entertainment System
Super Nintendo
Nintendo Gameboy
Nintendo Virtual Boy
Nintendo 64
Nintendo Gamecube
Nintendo Gameboy Advance
Nintendo Gameboy Advance SP
Nintendo DS
Nintendo Revolution

Next?
Click to expand...

All except Rev abbriviate a lot easier.

NES
SNES
GB
VB
N64
GCN
GBA
GBASP
DS
????
 
John Harker said:
Too many letters/syllabels for the mainstream.

You really overestimate the average consumer thinking "Revolution" would ever be a widely accept product name.

Look at the names of cars and other products these days.
RSX. RAV4. i800. M3. iPod. Mini. Simple, easy. PS3. 360. Numbers, letters, acronyms.

Not deeply rooted, meaningful terms like Revolution.
Like NES or SNES or N64. GCN.

I expect like, Nintendo FSX. Free Style XTREME. Or something like that.
Besides, REVOLUTION is NOOOOOOOOT a sexy name.

You can't put a name like that on a sleek box like the Rev case.
Click to expand...

Revolution has less syllables than XBox 360 and Nintendo 64 and as many as Playstation 3. There are plenty of abbreviations for it, like the REV or the RS.

I know they won't go for it, but I think its a great name. Here's why:

- It reflects the kind of attitude that can win over the pseudo-hardcore (the "Nintendo is kiddy.. I'll stick with GTA" crowd). This is a large segment of the market that Nintendo should not ignore.

- The name is powerful sounding which can keep it from getting an inferiority stigma from casuals. It's the PS2 effect... Casuals still seem to think the Gamecube is the weakest console of this gen.

- "Have you heard of the Revolution?" sounds so much more interesting than "Have you heard of the new Nintendo console?", and it can be tied into a great ad campaign.

- It perfectly describes Nintendo's new approach to gaming. If it doesn't cause a revolution, they should just call it the Nintendo "Gimmick" because that's what it will be.

I agree that there isn't a chance in hell they will name it Revolution though.
 
argon said:
"Revolution" has less syllables than XBox 360 and Nintendo 64 and as many as Playstation 3. There are plenty of abbreviations for it, like the REV or the RS.

I know they won't go for it, but I think its a great name. Here's why:

- It reflects the kind of attitude that can win over the pseudo-hardcore (the "Nintendo is kiddy.. I'll stick with GTA" crowd). This is a large segment of the market that Nintendo should not ignore.

- The name is powerful sounding which can keep it from getting an inferiority stigma from casuals. It's the PS2 effect... Casuals still seem to think it's more powerful than the Cube.

- "Have you heard of the Revolution?" sounds so much more interesting than "Have you heard of the new Nintendo console?", and it can be tied into a great ad campaign.

- It perfectly describes Nintendo's new approach to gaming. If it doesn't cause a revolution, they should just call it the Nintendo "Gimmick" because that's what it will be.

I agree that there isn't a chance in hell they will name it Revolution though.
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I don't care too much if they don't use it, as long as the replacement name doesn't sound fucking stupid. Revolution or N5. One of those two. PLEASE Nintendo :(
 
Mr_Furious said:
Nintendo Entertainment System
Super Nintendo
Nintendo Gameboy
Nintendo Virtual Boy
Nintendo 64
Nintendo Gamecube
Nintendo Gameboy Advance
Nintendo Gameboy Advance SP
Nintendo DS
Nintendo Revolution

Next?
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I don't get it, are you agreeing with me?

Nintendo is the brand company name.

And "Gameboy, Virtual BOY, 64, GameCube, DS, and their abbreviations GB, GBA, N64, GC, DS, etc"

All absolutely prove exactly my point. On, ya know, what I just said about Revolution not fitting in with their previous titles, and the complexity and depth of it vs what sells electronic gadgets.

Look up the name of HDTVs. Let me know when you find the Samsung "Digital Light Evolution" or something. You get WEGA's or HK788 or whatever. Simple, easy, efficeiny.

Like a pop song.
 
I think the Nintendo RS "Revolutionary System" is a great name for the system.

- Keeps close to the revolution codename so people will be familiar with it.

- Lots of marketing potential with the name.

- Name stays close to other nintendo products "Nintendo DS"

- It rolls off the tongue...


"ay man... did you get your RS yet?"

"yea... the RS sucks... "

"fuck you man... the RS is great!"




and... it throws away the idea of a nintendo console named "Revo"

uggh.
 
Nintendo keeps saying more info "early next year" . If they are in fact at CES, I wonder if that will start the beginning of Revolution news flowing freely.
 
That just about knocks me off the Spring US bandwagon. EA would know when the PS3 lands, and it looks like Fall is a go. PEACE.
 
John Harker said:
I don't get it, are you agreeing with me?

Nintendo is the brand company name.

And "Gameboy, Virtual BOY, 64, GameCube, DS, and their abbreviations GB, GBA, N64, GC, DS, etc"

All absolutely prove exactly my point. On, ya know, what I just said about Revolution not fitting in with their previous titles, and the complexity and depth of it vs what sells electronic gadgets.

Look up the name of HDTVs. Let me know when you find the Samsung "Digital Light Evolution" or something. You get WEGA's or HK788 or whatever. Simple, easy, efficeiny.

Like a pop song.
Click to expand...
No. I'm proving that Nintendo hasn't followed your convention of system names with the possible exception of the DS. Nintendo's marketing hasn't been "cookie cutter" to the point that someone like you or I can predict what they'd do. My point is that the Revolution is a catchy name that holds a lot of meaning and is "edgy" to boot. It doesn't have to be "sexy" (as you put it). It just needs to stick with consumers and not be marketed as some damn toy (unlike Nintendo's previous consoles). As others have noted, it's quite doable to stay with the name Revolution but I guess we'll have to wait and see what Nintendo decides to do.
 
John Harker said:
I don't get it, are you agreeing with me?

Nintendo is the brand company name.

And "Gameboy, Virtual BOY, 64, GameCube, DS, and their abbreviations GB, GBA, N64, GC, DS, etc"

All absolutely prove exactly my point. On, ya know, what I just said about Revolution not fitting in with their previous titles, and the complexity and depth of it vs what sells electronic gadgets.
Click to expand...

I don't see the name being any different than Genesis or Dreamcast, both names which were received pretty well in the U.S. (DC's untimely death notwithstanding).

Look up the name of HDTVs. Let me know when you find the Samsung "Digital Light Evolution" or something. You get WEGA's or HK788 or whatever. Simple, easy, efficeiny.

Like a pop song.
Click to expand...

You don't buy software for HDTVs at local retailers and rarely need to remember your TV's name after you buy it. The model names are used in a completely different manner. The marketing aspect is more important for consoles because it plays a larger part in consumer perception. That's why MS chose XBox 360 and not XBox 2.
 
KingJ2002 said:
I think the Nintendo RS "Revolutionary System" is a great name for the system.
Click to expand...

With some accents in the UK that would sound worryingly like the Nintendo Arse ;)

Also looks a bit like Nintendo BS which wouldn't be too good either!

I expect it will be something a bit dodgy like the Nintendo Freestyle, although they should just call it the Nintendo Freedom and tie it into the war on terror.
 
In addition, he mentioned the consumer belief that the PlayStation 3 may be launching in Spring 2006, noting that it's "causing some people to stay on the sidelines",
Click to expand...

This is hilarious how can you say they are staying on the sidelines when you cant find any 360's anywhere.
 
I think a late 2006 launch for both Nintendo/Sony is inevitable now.

If PS3 was close I'm sure you would have seen more Sony spoiler-tactics around the 360's launch. I'm not sure even Spring is realistic for Japan from the TGS showing, although we probably won't find out till the thing in February.
 
KeithFranklin said:
This is hilarious how can you say they are staying on the sidelines when you cant find any 360's anywhere.
Click to expand...

That is what I was wondering. It's not like anyone holding out on purchasing it could run out and buy one at will right now.
 
KeithFranklin said:
This is hilarious how can you say they are staying on the sidelines when you cant find any 360's anywhere.
Click to expand...
Well thats really inconsequential. Hes just informing shareholders that some "would-be" launch customers aren't ready for the transition yet, which is an important point to make.
 
Striek said:
Well thats really inconsequential. Hes just informing shareholders that some "would-be" launch customers aren't ready for the transition yet, which is an important point to make.
Click to expand...
This goes without saying at the start of every gen really.

And they certainly aint helping with half assed rushed next gen efforts.
 
Sony's strategy works out pretty good. By not releasing info on PS3 they wont have people turned away from PS2 b/c they think they're just wasting money that they could save for the system. Also PS2 still has Final Fantasy XII and Kingdom Hearts 2 coming so those would generate some decent sells figures. By late 2006 everyone should be good and ready for next gen and also by coming out in late 2006 there might be a decent blu ray lineup ready to go along with the console launch :)
 
"don't see [the Xbox 360] getting to the installed base numbers we expected.""

Well duh. Without units to buy, userbase cant go up.

For the Xbox launch, MS had three factories going right? Mexico, Poland, China. Where are they building this time, Somalia?



As for the Rev thing....it has to stay. Nintendo has used it for too long, people know it.

Its like DS staying DS and not Nitro.
 
PhatSaqs said:
This goes without saying at the start of every gen really.

And they certainly aint helping with half assed rushed next gen efforts.
Click to expand...
For sure, its not a negative, its just reality. Lucky, alot of people will be buying into next-gen before the PS3 launch, so its not really an issue.
 
KeithFranklin said:
This is hilarious how can you say they are staying on the sidelines when you cant find any 360's anywhere.
Click to expand...


Seems pretty clear to me. It's pretty easy to be on the sidelines when you have absolutely no hope of getting into the game. That is, the numbers are MUCH smaller than they expected, and they had expected a percentage of those "sideliners" to jump on with the 360.

Because of launch quantities, that's not possible.
 
Ouchie and ouchie.

"There are 5 million people who really believe they are getting an Xbox 360 relatively soon, by February. Microsoft has shipped 500,000 units, so 4.5 million people are doing nothing. That's enough to just kill Christmas," said Michael Pachter, an analyst with Wedbush Morgan Securities.
Click to expand...

PJ McNealy, an analyst with American Technology Research, said the [Xbox 360] shortages were not likely to be resolved in the next few months.

"This may be a two-year recovery, not a 12-month recovery. We're likely not going to see the PS3 in large volume next holiday," McNealy said.
Click to expand...
 
sonycowboy said:
Seems pretty clear to me. It's pretty easy to be on the sidelines when you have absolutely no hope of getting into the game. That is, the numbers are MUCH smaller than they expected, and they had expected a percentage of those "sideliners" to jump on with the 360.

Because of launch quantities, that's not possible.
Click to expand...

Right but wouldn't you have to wait until the spring to see if people are really holding out on buying the system? If the system becomes readily available and people decide to hold off based on a concrete PS3 launch date or whatever the maestros at Gamestop are telling them, then it has an effect on what third parties can sell. Right now the problem is how few systems are available to the usually group of one million people that will run out to buy whatever the hot new item is at launch.
 
Mooreberg said:
Right but wouldn't you have to wait until the spring to see if people are really holding out on buying the system? If the system becomes readily available and people decide to hold off based on a concrete PS3 launch date or whatever the maestros at Gamestop are telling them, then it has an effect on what third parties can sell. Right now the problem is how few systems are available to the usually group of one million people that will run out to buy whatever the hot new item is at launch.
Click to expand...


His quote of "on the sidelines" wasn't solely in reference to the 360. It was in reference to the current generation sales and the consumer indecision currently out there.

- People are being "forced" to wait on the sidelines for a 360
- People are "choosing" to wait on the sidelines with respect to the current gen stuff.

In either case, they're not in the game.
 
Excellent. E3 will be all about the PS3 and 360 next year, and I have plenty of excellent PS2 RPG's to play until next Fall. I could care less about next gen yet when the PS2 has so much to offer and Zelda is due next Spring. As for the XBox, since it's dead to MS, it's dead to me as well.
 
You're right, I misread it. They're screwed either way then because even if none of the next-gen systems were coming before september of next year, the games coming out now were never going to sell as much as GTA, Halo, etc.
 
TheJollyCorner said:
we should get a better idea about PS3's launch plans @ CES.
Click to expand...
How do you figure? Especially if they went for xmas 2006 in the USA why would they announce that at CES and concede a 1 year to 360? "DONT WAIT FOR US" is what the message would be. I wouldn't be surprised if you got more info from 3rd parties (like EA) than Sony (and Nintendo). This is business 101 tactics :lol
 
KeithFranklin said:
This is hilarious how can you say they are staying on the sidelines when you cant find any 360's anywhere.
Click to expand...

I think he maybe referring to the casual, mainstream gamer. For example, in my neighborhood we have about 10 guys/kids who majority own PS2s & few Xboxs. Only one guy I aware of went to the trouble of getting an x360 while everyone else has specifically mentioned waiting for the PS3. I am hearing this talk of wait too in the schools- must be the whole playstation mystique or something.
 
chinch said:
How do you figure? Especially if they went for xmas 2006 in the USA why would they announce that at CES and concede a 1 year to 360? "DONT WAIT FOR US" is what the message would be. I wouldn't be surprised if you got more info from 3rd parties (like EA) than Sony (and Nintendo). This is business 101 tactics :lol
Click to expand...

Your assuming that there going for a Holiday 06' launch. I agree that it would be stupid to announce that the PS3 will not be coming out for another year at CES but the other side is Sony really releasing in the Spring (which remains to be seen). The only reason why people seem to doubt a Spring release is because of lack of information.
 
BlueTsunami said:
Your assuming that there going for a Holiday 06' launch. I agree that it would be stupid to announce that the PS3 will not be coming out for another year at CES but the other side is Sony really releasing in the Spring (which remains to be seen). The only reason why people seem to doubt a Spring release is because of lack of information.
Click to expand...

And remember what happen last time with a lack of information before E3. Some people said the Sony would have a boring E3 showing. :lol
 
mckmas8808 said:
And remember what happen last time with a lack of information before E3. Some people said the Sony would have a boring E3 showing. :lol
Click to expand...

Probably the best kept secret in this industry I've seen in a long time. (We got LOTS o hints about the Rev controller, but I'll admit it still had a bigger impact) ~Most media folk were completely caught off guard by the showing and I've heard that even a good number of developers were unaware of what was going on. And, the financial folks, forget about it. They didn't get a sniff of it beforehand.
 
With VP2, KHII, FFXII, MGS3:S, DMC:SE, BLACK, etc. coming out next year, there no need for a next generation right now.
 
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