Electronic Arts cuts forcast, shares fall [News.com]

The company’s shares fell nearly 13 percent and weighed heavily on the sector in after-hours trade following the news, the first time in EA’s history as a publicly traded company that it issued a profit warning during a quarter.

Electronic Arts’ U.S. market share on a dollar basis for the year to date is roughly twice that of its closest competitor, Japan’s Nintendo.
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“I think this is a carry-over of not only the hardware shortage but also them not having a ‘Halo 2’ or ‘GTA,’” he said, referring to the two hottest games of last holiday season, neither of which EA published.

New releases were unable to offset a “significant falloff” in sales of older, catalogue games, the company said. It also blamed strong competition from new games, in particular the breakout hit of Vivendi Universal’s online game “World of Warcraft.”

I think EA just got a wee bit too complacent, and they are beginning to feel the effects of their complacency.