PS3 game sales dissapoint EA!

"(Video Business Via Thomson Dialog NewsEdge) The videogame publisher with the largest market share in PlayStation 3 titles reported last week that sales of games for the platform were less than expected during the holidays.

During a conference call elaborating on financial results for the quarter ended Dec. 31, Electronic Arts executive VP Frank Gibeau said the publisher was "disappointed" at the tie-ratio of PS3 games sold to each system purchased.

EA holds a 32% share of PS3 game revenue based on $41 million in orders from retailers and distributors (900,000-plus units at $44.99 wholesale) through the holiday quarter.

That's far fewer games than sold during the Xbox 360 launch in 2005. Then, EA filled orders for Xbox 360 games totaling $76 million (1.69 million units at $44.99 wholesale). Both platforms suffered from manufacturing problems that kept supplies tight at launch.

Xbox 360 revenue for the quarter was up 126% to $172 million, while PS2 revenue declined 19% to $400 million.

Gibeau attributed the lower PS3 game tie-ratio at launch to "the eBay effect," with many early purchasers more intent on selling their systems for a profit than buying games. Although he did not provide figures, Gibeau said PS3 tie-ratios have improved appreciably during January.

Meanwhile, VB
sister publication Daily Variety
reported that a Sony senior executive said the company might consider cutting the price of the PS3."

Copyright 2007 Reed Business Information. All Rights Reserved.

From ip communications.com!