Can You Smell What EA Is Cooking?

If the proof is in the pudding, Electronic Arts (Nasdaq: ERTS  ) better load up on eggs and cornstarch, because it's time to start cookin'.

Arguably the biggest name in video game publishing, EA still hasn't figured out a way to turn a profit in a seasonally limpid first quarter. This week's report showed a $95 million net loss, or $0.30 per share, smaller than last year's $0.42 GAAP loss per share. Smaller, schmaller -- a loss is a loss, and this was the fourth year in a row of first-quarter losses bigger than $75 million.

Rival and erstwhile acquisition target Take-Two Interactive (Nasdaq: TTWO  ) had a blowout quarter on the strength of its latest Grand Theft Auto title. Activision Blizzard (Nasdaq: ATVID  ) is looking good on the strength of two new titles in the Guitar Hero franchise. Nintendo is rocking the sales charts week after week with self-published titles that take advantage of its unique hardware platforms. Heck, even little Konami (NYSE: KNM  ) rocked a big hit this quarter with Metal Gear Solid 4.

In the middle of all this raucous success stands EA, looking stern with arms folded. Sure, you know that the usual lineup of refreshed sports games franchises like Madden '09 will bring in the cash in the fall, and the company gets a cut of Viacom's (NYSE: VIA  ) wild Rock Band gains as distributor of that MTV-backed game. Refried beans and someone else's lunch -- that's all EA serves up these days. No wonder the company wants to buy Take-Two to expand its product lineup -- the creative juices are running a bit low in-house.

It's just not good enough to rest on your laurels, EA. Making money as a game developer takes creativity and a few calculated risks, neither of which is a hallmark of EA these days. As a result, your share price is floating just above one-year, two-year, and five-year lows today. Call me when that pudding's done, guys. Do you even have a recipe yet?