EA Running Rings Around Its Rivals

from the and-so-it-goes dept

In the past few months there have been a ton of articles about how the video game industry was still booming, and at the top of the heap was always Electronic Arts, quickly becoming the Disney of video games. Now, suddenly, many video game makers are claiming that sales this quarter (which is the quarter to care about) aren’t doing as well as expected, and people are starting to look at EA to find out if they’re going to miss earnings as well. EA says they won’t give any indication until earnings come out in February, but some are predicting that EA is doing just fine. If anything, it’s stealing market share from the smaller competitors who are struggling. While that could look good for EA, as they build up a dominant position, it might not be good for the gaming industry as a whole. When companies are stealing market share from each other, that generally means that the overall industry isn’t growing any more. If video games were supposed to be the growth engine for the entertainment industry over the next few years, it may have stalled out a little early.

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