Sales Drop, but Electronic Arts Beats Forecasts
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The video game maker exceeded Wall Streetâs earnings expectations despite a 38 percent drop in third-quarter sales.
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Electronic Data Systems Corp. EDS.N,  the world's second-largest technology services provider, on  Monday posted a higher-than-expected quarterly profit thanks to  cost cutting, but revenue fell and it forecast 2005 earnings  would fall short of Wall Street estimates.
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TOKYO -- Just when Sony appears to have turned around its electronics business, another part of its sprawling empire _ video games _ is dragging down profits.
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U.S. sales of video game hardware  and software were $1.18 billion in January, down 6 percent from  a year earlier, with Nintendo Co Ltd's  Wii console  once again outselling its rivals.
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No. 1 video game maker Electronic Arts Inc on Tuesday reported higher quarterly profits on strong demand for titles like Madden NFL 2005, but its stock price fell after a holiday forecast fell short of Wall Street expectations.
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DVD sales might have  slipped in 2007, but another key segment of the home  entertainment market had a banner year: video games.
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U.S. sales of video game hardware  and software were $1.18 billion, with Nintendo Co Ltd's   Wii console keeping a slim edge over rivals amid  ongoing supply constraints.
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Electronic Arts swung to a loss because of restructuring charges and deferred revenue, but posted record revenue during the most brisk holiday season the video game industry has seen.
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The latest results from games giant Electronic Arts beat market expectations, despite its profits falling 38%.
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U.S. video game sales rose 8 percent in 2004, despite a drop in sales in December due to widespread hardware shortages, analysts said on Friday.
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Recent launches of new video game  consoles from Sony (6758.T), Microsoft  and Nintendo  (7974.OS) are benefiting game maker Electronic Arts Inc.  , which is aiming to garner 20 percent of total game  sales, according to Barron's.
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Electronic Arts cuts prices on key sports titles, showing some vulnerability.
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Holiday hits "Grand Theft Auto: San Andreas" and "Halo 2" lead way as game makers sell close to $10 billion in software and hardware.
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Electronic Data Systems Corp. EDS.N  on Monday posted a higher-than-expected profit thanks to cost  cutting, but it forecast 2005 earnings would fall short of  analysts' estimates as it hopes to bring back growth by  investing $1 billion in key areas this year.
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The video game maker largely met Wall Streetâs forecasts, despite posting a quarterly loss because of reorganization charges and deferred revenue.
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Video game sales soared to a record $18.2 billion last year, but the days of strong growth are on pause as players await a new generation of consoles.
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Take-Two Interactive Software Inc  said on Tuesday it cut its quarterly net loss in half, but the publisher of games such as "BioShock" gave an outlook that fell short of Wall Street expectations, and its shares fell 4 percent.