After posting a lackluster quarterly report yesterday, EA fails to impress market analysts with its current standing. Even with strong annualized titles such as NBA Live and Madden NFL,  analysts believe that Electronic Arts just isn't taking full advantage of their growth.

"While we are encouraged by improving quality ratings of several annualized EA Sports titles, as well as recently released Dead Space (Xbox 360, PS3), we continue to believe the improving product execution is coming at a high cost," notes Colin Sebastian of Lazard Capital Markets. "EA's margins are ramping more slowly than we originally expected at the beginning of the year." Sebastian has already lowered his rating on the stock from "Buy" to "Hold."

Some analysts were even more disappointed with EA, including  Evan Wilson of Pacific Crest Securities. "EA's results have been mediocre for too long," he wrote. He also noted that their actions "exacerbate the negatives that the video game industry is facing."

Wedbush Morgan Securities' Michael Pachter could not be more blunt about the situation. "EA management was somewhat aloof during the earnings call," he said. "With the stock hovering near a seven-year low, management continued its recent history of disappointment, and spent an inordinate amout of time sowing seeds of fear about the potential for a tepid holiday sales season."

But all is not lost. Pachter also notes that EA is very capable of turning the situation around. "Management has demonstrated an uncanny ability to snatch defeat from the jaws of victory in the eyes of investors," he wrote. Unlike Sebastian, Pachter retained his "Strong Buy" rating on the publisher.

If you're planning to put some money on EA, you might want to slow down and think again. Things can still turn around but it seems they've had this coming for a long time. With the continued growth of the gaming industry, EA just can't get caught sitting on its laurels.

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