EA concerned over the state of GAME2 Feb 2012
In a financial earnings call last night, Electronic Arts raised concerns as to the stability of “a major European retail partner”. Money is on that retailer being GAME.
EA head John Riccitiello and CFO Eric Brown both warned that a negative outcome for the retailer would affect their business.
“We are concerned with the financial condition of one of our major European retail partners,” said John Riccitiello, “which could lead to both increased bad debt and lost sales.”
Brown added thar “we are focused on some isolated European retailer issues that have recently been announced. A negative outcome could adversely affect our Q4 results.”
GAME has been suffering in recent months. The most recent problem being the loss of its credit insurance, which has led to rumours that the company is struggling to stock new release title as distributors want money in advance.