Electronic Arts Cutting Games, Firing Staff and Closing Offices

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Electronic ArtsElectronic Arts confirmed that it now believes its net revenues and earnings per share will be lower than previously expected for its 2009 fiscal year. According to EA, "The Company is continuing to pursue cost saving initiatives including a reduction of its product portfolio for fiscal year 2010 with additional associated headcount reductions and facility consolidations."
This announcement is "primarily the result of lower than expected sales across North America and Europe." In other words, EA's games didn't sell as well as EA expected or hoped. Unfortunately, it's bad enough that EA feels it has to cancel games, fire staff and close offices.


EA also noted that "...we remain committed to investing in great game quality, in new properties and in our direct-to-consumer initiatives. We will be launching several new titles and online games in fiscal 2010." That implies that EA will focus on its successful online casual games business, and work to circumvent retailers by delivering games directly as downloads. EA also clarified that it will not be cutting its sports franchises. Presumably, EA will be even less interested than usual in pursuing risky or innovative titles and will focus on games with extreme "hit potential."

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This page contains a single entry by Editor published on December 9, 2008 2:38 PM.

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