The influence of the review shows in the share price


The influence of the review shows in the share price

As someone who has written reviews, for the Tech Trader section of MicroScope, in the past I will tread more carefully in the future about giving the thumbs up or down.

If ever there was an example of the pen being mightier than the sword then the impact on the share price of Electronic Arts following lukewarm reviews of its latest Medal of Honour game provides a salutary lesson.

EA saw its share price slip by 6% on afternoon trading yesterday after the reviews of the game were not as good as expected. The power that some of the main game rating websites have is clearly enough to influence investors and hit the the company valuation.

Having said that of course EA has boasted of having the biggest pre-orders in its history and in the end the gamers themselves will decide what they want to play but it does show that in a world where we are all given the chance to post reviews on Amazon and other buying sites the reviewer is still an important factor in determining the success of a launch.

This was first published in October 2010

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