EA CEO: We should have bet on the Wii

[Ail]

HappySqurriel said:

On a side note, my questions weren't there to imply "HD console's can not be profitable" but were serious questions that someone should ask the CEO of a major corporation ...

The fact is he is legally obligated to maximize the profits of his company and that means (regardless of whether you like it or not) if it would be more profitable for EA to make 4 small games for the Wii than to produce Madden for the HD Consoles he is supposed to make the 4 small Wii games. There is a certain ammount of freedom he is given to focus on long term profits over shorter term profits, but he should be able to explain his motivations in an intelligent manner.

 

While small profitable games are good for revenue and profit and the short term bottom line they are not what impact significantly the stock price of a company.

Successfull franchises with successfull iterations ( ie IP) is what make or break a company stock price.

For how much did the success of Carnival games count into the EA offer to purchase Take Two ? very little I would expect...

The issue with profitable/small costs games that don't develop into huge franchises is that every year you have to repeat the success story. Whereas future revenue is easier to predict with huge successfull franchises and this is what stockholders are looking for.............

You need a mix of both to successfully run a game development company ( unless you are Blizzard) but in the end the sucessfull IP is what will most affect how the company is valued..