Analyst: EA's focus on new IPs may cost CEO his job
When John Riccitiello became the chief executive officer of Electronic Arts, he brought with him a unique strategy: focusing on quality titles, rather than quantity.
Under Riccitiello's guidance, EA launched a number of successful new properties, including Dead Space, Dragon Age and Mirror's Edge, while it also revitalized old franchises, such as Need For Speed.
However, some analysts fear that Riccitiello's strategy of fostering creativity may not win over the company's stockholders, who are more concerned with short term profits.
"My number one fear is that EA's shareholders will lose patience with John Riccitiello's strategy. He is trying to turn a supertanker," Nicholas Lovell told Edge. "Public market shareholders are generally short-termist, and I fear that they will not have the patience to see it through."
EA's stock recently dropped in light of the less-than-favorable reviews that Medal of Honor received. The title went on sale for the PlayStation 3, Xbox 360 and PC earlier this week.
