informa
2 min read
article

Publisher Share Prices Hit by 360 Stock Cut

The share prices of a number of prominent third party publishers, including Electronic Arts, THQ, Take-Two and Activision, have fallen significantly, following the announ...
The share prices of a number of prominent third party publishers, including Electronic Arts, THQ, Take-Two and Activision, have fallen significantly, following the announcement on Friday that Microsoft was cutting its Xbox 360 shipping target for the fiscal year ending June 30th. Microsoft announced that the company’s previous target of 13 to 15 million units shipped by the end of the fiscal year had been cut to a total of 12 million. Lazard Capital Markets' Colin Sebastian had suggested on Friday that the overall impact on software sales, resulting from the cut, would be negligible. However, a Reuters report shows that third party publishers have been hit by the news with THQ share price falling by as much as 4 percent (bouncing up slightly to $31.04 early in Monday trading) and Take-Two’s by 2.3 percent (and down slightly further to $16.80 on Monday). Electronic Arts also fell by 1.7 percent (to $49.00 in early Monday trading) and Activision by 2.3 percent (to $17.00 early Monday). The latter fall was despite positive results from the company’s third quarter results on the same day. The report quotes a client note from American Technology Research analyst Paul-Jon McNealy in which he suggests, "Video game publishers will be under pressure today after Microsoft cut its life-to-date shipment... There is investor concern about a re-set of expectations around both the Xbox 360 and the Sony PlayStation 3.”

Latest Jobs

Studio Pixanoh LLC

Los Angeles, California
05.20.22
Combat Designer

Treyarch

Playa Vista, California or Vancouver, BC
05.20.22
AI Engineer

Question

Remote
05.20.22
Lead Level Designer (South Park)

Remedy Entertainment

Helsinki Metropolitan Area, Finland
05.23.22
Rigging Artist
More Jobs   

CONNECT WITH US

Register for a
Subscribe to
Follow us

Game Developer Account

Game Developer Newsletter

@gamedevdotcom

Register for a

Game Developer Account

Gain full access to resources (events, white paper, webinars, reports, etc)
Single sign-on to all Informa products

Register
Subscribe to

Game Developer Newsletter

Get daily Game Developer top stories every morning straight into your inbox

Subscribe
Follow us

@gamedevdotcom

Follow us @gamedevdotcom to stay up-to-date with the latest news & insider information about events & more