Steady financials expected

Ahead of EA’s announcement this evening, Wedbush Morgan predicts revenues of $575 million, slightly down on the $581 million estimate issued previously. It also added that the release of The Godfather could lead to a possible late surge.

Activision is predicted to exceed expectations with possible revenues of $145 million following March sales that were higher than expected, and could exceed the $1 billion revenue barrier in FY2007.

THQ is expected to fall in line with previous forecasts and post revenues of $150 million, adding that the proposed merger of Pixar and Disney and the subsequent increase in film releases creates further potential for the firm to grow.

Midway is also expected to meet expectations with revenues of $14 million, thanks to a strong sales quarter, though it’s still expected to post a net loss of $66 million for the year due to on-going investment. Wedbush is still maintaining that Midway can return to profitability, providing it continues to spend on development expansion.

Wedbush also stated that it expects earnings to remain challenged over the next 12 months as the current generation machines continue to fade away amidst anticipation of the next generation. It also expressed a little disappointment with the performance thus far of Xbox 360, and stated that a large question mark remains over launch quantities of PS3 and Nintendo Wii.

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