Format holders have level playing field in next-gen battle - EA

Via GIbiz

All three next-generation format holders are expected to have an equal footing in the next-generation console battle, according to publisher Electronic Arts.

In the eyes of the world’s largest games publisher, Sony’s traditional dominance of the home console market will not continue in the face of the launch of Nintendo’s Wii and the steady growth of Microsoft’s Xbox 360.

“Over the course of the new cycle, EA expects a more even playing field among the three video game consoles in contrast to Sony’s dominance during the previous two cycles,” said Colin Sebastian, senior research analyst at Lazard Capital Markets.

The publisher has also expressed minimal concern over the delayed launch of the PlayStation 3 in Europe, according to Sebastian.

“EA management does not appear surprised by Sony’s announced delay of the PS3 launch in Europe, though we believe there could be a few tweaks to EA’s launch line-up.”

“However, we do not expect a meaningful impact on the fiscal year outlook,” he added.

With the playing field levelled, publishers and retail look set to benefit from three strong performing consoles.

“Based on our conversations with EA, we maintain our overall positive view of the company, specifically the prospects for healthy long-term growth,” said the analyst.

“According to EA, the retail channel remains relatively clean ahead of the important holiday selling season,” said the analyst.