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Bodhesatva said:

I'll admit, my knowledge of financial markets is provincial, at best. Can someone with more savvy answer me this: is it normal for a company that has seen consistently eroding profits to be spending lavishly on takeovers? Is that a usual solutuion to that kind of problem?


In my opinion EA problem is that they had build their empire in last 7 years upon sequel only.

I think that EA has lost its creative force relying on heavy serialization. They failed to soundly read the new casual market , missing DS train and overlooking the Wii at launch. In a disruption age, EA need creative studios that build new treadmark.

They have the cash to do this acquisitions and they try to do them to  mantain their leadership in the software market.



 “In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.”  Hiroshi Yamauchi

TAG:  Like a Yamauchi pimp slap delivered by Il Maelstrom; serving it up with style.