Electronic Arts Reports Massive Third Quarter Loss and Game Delays

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Electronic ArtsElectronic Arts announced its financial results for its fiscal third quarter ended December 31, 2008. Electronic Arts also revised the release dates for games including The Sims 3 and Dragon Age.
For the quarter, EA reported a net loss of $641 million compared to a net loss of $33 million in the same quarter the prior year. Certain charges, including a $368 million goodwill impairment charge relating to its wireless business and a $244 million revaluation of certain tax deferred assets had a big impact on the company's results.

EA credited several games as its biggest sellers for the quarter, including FIFA '09 (7.8 million copies so far), Rock Band 2, Need for Speed: Undercover (5.2 million copies so far), Left 4 Dead, Dead Space, Madden NFL '09, Littlest Pet Shop (2.8 million copies so far), NBA Live '09 and Mirror's Edge. EA also confirmed that Warhammer Online: Age of Reckoning has around 300,000 paying subscribers.

As previously announced, EA is cutting its workforce by around 11%, closing 12 facilities and cancelling projects ("narrowing its product portfolio"). Overall, the company expects charges over the next 12 months of $65 million to $75 million relating to these cuts.

By region, North American sales provided 58% of revenues with Europe contributing 38% and Asia contributing 4%. By platform, Xbox 360 games constituted 16% of revenues, PlayStation 3 games were 13% of revenues and Wii games were 11% of revenues. All other platforms constituted less than 10% of net revenues.

Additionally, The Sims 3 will now ship for the PC on June 2, 2009 and Dragon Age (the upcoming role-playing game from BioWare) has been postponed from early 2009 to the second half of 2009 (so expect it this holiday season).

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This page contains a single entry by Editor published on February 3, 2009 2:43 PM.

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