EA delays new Harry Potter game

Tag : Electronic Game

Electronic Arts has delayed until next summer its latest HarryPotter video game, one of its more popular franchises that had beenexpected to boost earnings and revenue this fiscal year.
Shares of EA fell 3 per cent after it said on Monday it postponedthe Harry Potter and the Half-Blood Prince game from November 2008 to coincide with the delayed release ofthe film of the same name by Warner Bros Pictures.
EA said the title had been expected to generate US$120 million(NZ$173 million) in revenue and 13 cents a share in profit in itscurrent fiscal year, which ends March 31, 2009.
The profit represented about 9 per cent of the average forecast forthe company's full-year earnings before special items of US$1.52 ashare, according to analysts surveyed by Reuters Estimates.Analysts forecast full-year revenue of US$5.1 billion.
Analysts said that US$120 million in revenue implied sales of up to4 million units of the game, making Harry Potter a significant title at EA, whose roster includes hits such as Madden football and Rock Band .
But Stern Agee analyst Arvind Bhatia said the market may havealready factored in some of the potential effect of the delay,since Warner Bros' announced the movie's postponement on August 15.Warner Bros is a unit of Time Warner.
"I don't think it will change the revenue and (profit) thatthey will generate from this title," he said. "It takesnumbers out of this year essentially and put them into next year,so this year goes down slightly," he said.
Bhatia in August lowered his fiscal year 2009 revenue and profitoutlook by US$150 million and about 10 cents per share, and raisedhis 2010 forecast by the same amounts, respectively. He has a"buy" rating on the stock.
EA spokesman Jeff Brown said the company would update its guidancewhen it reports quarterly results in October. He declined tocomment on whether its 2009 financial outlook would fall short ofWall Street's targets due to the change.
Originally set to debut in November, the new Harry Potter movie wasshifted to bolster Warner Bros's schedule for the lucrative summermovie season, in the wake of the Hollywood screenwriters strikethat has forced studios to reconsider release dates.
When it launches, the game will be available for most game consolesincluding Nintendo's Wii , Sony's PlayStation 3 and Microsoft'sXbox 360, as well as personal computers.