Nintendo 64 is the cause of EA's biggest stock drop ever, say analysts.

Industry analysts are blaming poor sales of Nintendo 64 software for Electronics Arts' largest drop in stock ever.

EA's value fell 27 points after a whopping 11 million of its shares changed hands last Friday. The drop comes after the company's shares hit a record high on Monday off the back of optimism for new online games.

"This is the sort of thing that happens at the end of a videogame cycle,'' said Nick Moore, an analyst with portfolio manager Jurika & Voyles, which recently sold its stake in Electronic Arts. "Relative to where we are at the end of the cycle, the shares seem expensive."

Less than spectacular sales of anticipated Nintendo 64 releases from EA, however, have also factored in. One specific EA N64 release that has been met with unfavourable reaction is WCW Mayhem, which simply isn't competing on the level the company had hoped it would. "WCW Mayhem is just not selling well," said Joseph Spiegel, an analyst with Spinner Asset Management.

While EA aren't likely to be permanently damaged by the recent stock drop, the firm will most certainly re-evaluate future Nintendo 64 investments.

FG wonders if this sudden lack of confidence isn't due to the fact that its many sports series, such as FIFA are now simply dog tired, and that the Nintendo console itself is suffering from the effects of a series of poor games, like (spit) Superman.


Courtesy of IGN.com