Tuesday, March 15, 2011

EA Says NPD Sales Data Misrepresents The Gaming Industry


Electronics Arts Corporate Communications Executive, Tiffany Steckler claims that the NPD group’s(an organisation that reports on industry sales figures) monthly sales reports as a “misrepresentation of the entire industry”. EA’s major issue with it is that the NPD’s sales data doesn’t take into account digital distribution sales and online revenue from freemium games. An NPD group analysts says they do release quarterly digital sales reports now. Wedbush Morgan’s Michael Pacther said it’s a “gross overstatement” for EA to say NPD’s data as irrelevant as physical games sales still matter. I think EA is mostly attacking NPD due to having suffered from poor stock performance. Often times their stock prices have taken a beating when sales figures of their games aren’t too encouraging. EA probably wants investors to get an accurate account of their revenue as their revenue from digital has gone up by 39%. While it’s still not bigger than retail sales, it’s still a significant number.

Source: CNN Money

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