Electronic Arts, the world's largest video game maker, has reported a drop in profits as the company feels the pressure of next generation game development costs. The company reported a 31% drop in profits with net income in the three months to December falling to $259 million from $375 million over the same period in 2004. EA warned that 2006 will remain a challenging year for the firm. The video game industry is currently at the start of a transition to the next generation of gaming and console technology.
The company said it will continue to invest in next generation games development but expects software sales across the industry to be flat over the coming year.
Source:
BBC News











