Electronic Arts Inc. (ERTS), seeking to bolster investor enthusiasm after several years of lackluster financial performance, said it plans to exceed $6 billion in annual revenue in three years, or more than 50% higher than expected revenue for its current fiscal year.
Such an increase would restore solid growth at EA, maker of well-known videogame franchises such as Madden NFL football and the Sims. In recent years, EA has shown little in profits and revenue growth as it struggled with high development costs, poor reviews and weak sales for some games.
Investors reacted positively to the news, sending EA's shares up $2.50, or 5.4%, to $48.85 in trading on the Nasdaq Stock Market.
At an event for Wall Street analysts at its Silicon Valley campus in Redwood City Tuesday, a new management team at EA -- including John Riccitiello, who joined EA as chief executive last April -- for the first time collectively presented its plans for the coming years. In their presentations, Riccitiello and other executives announced plans to contain costs for games by sending more development overseas, improve the quality of its titles and to make new games that are easier to play for consumers who aren't avid gamers.
"Our company has not delivered in the last three years in any way acceptable for shareholders," Riccitiello said.
This guy sounds like a politician, with these promises. He must think they have some hot games in the pipeline.
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