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Bob Burns

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Burlington, IA
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Stock Pick by Bob Burns

ERTS: EA Will NOT Climb Over the Holiday Season

Start trading ERTS with real money!

Rate Analysis
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1 ratings
Posted 396 days ago on 10/21/08

ERTS will go DOWN
$24.00 on 11/21/08
$17.30 (-40.44% from time of market call)

Many people are claiming that the Spore pirating scare is driving Electronic Art's stock down. This just isn't true. I have pirated games with online components and they are completely worthless beyond the Single Player Campaign. All game manufacturers require some sort of account creation/register to access the online components of the game. With pirated software either #1 Someone else has already registered the account that you copied #2 Special codes/serial numbers have already been defined to a previously created account. Also consider that almost every game on the market can be pirated somehow. Spore altogether will be no cash cow for the company either. It is a unique game, yes, but it is far too short. Even if it were the next greatest game, a single title would never boost EAs stock up significantly. EA released Warhammer Online and Spore and no noticeable increase/decrease was seen in the stock. With the market being garbage at the moment and the volatile industry of video games, I am doubting that the increase in sales over the Holidays will have any affect on EAs stock in the short term. Also, Blizzard will be debuting a new addon to their cash cow World of Warcraft over the Holidays, hurting EA sales even more.

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