EA Suffer $641m Loss-12 offices to shut and workforce to be slashed

[diggumsmax]

Not the biggest fan of EA (although I loved Dead Space) but it always sucks to hear about people losing their jobs. I guess the entertainment industry isn't recession proof after all.

http://xbox360.ign.com/articles/950/950898p1.html

EA has posted a loss of $641 million for the third quarter of the financial year, and has announced that it will be closing 12 facilities and increasing redundancies to affect some 1,100 staff.

"Our holiday quarter came in below our expectations and we have significantly reduced our financial outlook for fiscal 2009, a clear disappointment," said CEO John Riccitiello, in a call picked up by gamesindustry.biz. "We delivered on game quality and innovation in calendar 2008, with 13 titles rated 80 or above - more than any third-party publisher. We expect to build on this great quality record in the year ahead while delivering more profitability."

The news came in the same call that bought news of a slew of new games, including a Battlefield: Bad Company sequel and a curious version of Dead Space for the Wii. No details were forthcoming about which facilities would be closed, though the redundancies were to affect "all levels; staff, managers, directors, and VPs and above, and across all functions and geographies," according to chief financial officer Eric Brown.

EA's best selling title for the period was FIFA 09, which shifted a colossal 7.8 million units, while Rock Band sold 1.9 million units and Mirror's Edge sold over a million units.

[Snadinator]

The news came in the same call that bought news of a slew of new games, including a Battlefield: Bad Company sequel and a curious version of Dead Space for the Wii. No details were forthcoming about which facilities would be closed, though the redundancies were to affect "all levels; staff, managers, directors, and VPs and above, and across all functions and geographies," according to chief financial officer Eric Brown.

Dead Space: Chop till you drop.

Anyone see the Wii pic Kotaku put up. Man... talk about fugly.

[Averry]

I still think it was just EA.

Overall, there were just as many video game sales, but just not EA sales.

They don't have any top franchises besides their sports franchises. They grew too big, and let their mediocre reputation catch up to them. Their satellite companies like DICE and Criterion did good for them, but even those weren't 5 million sellers.

Activision has Call of Dutys, Guitar Hero.

EA does have Rock Band, but I don't know how much money goes to MTV/Electro Harmonix.

[daevv]

I'm a boycotter of all things EA but I did enjoy Dead Space and much to my surprise NHL 09 this year. I think this looks good on them...

[Snadinator]

EA was involved in plenty of good stuff for 2008.

Battlefield: Bad Company
Burnout: Paradise
Rock Band 2
Dead Space
Mirror's Edge
NHL 09
Madden 09

[HuskerGuy]

The news came in the same call that bought news of a slew of new games, including a Battlefield: Bad Company sequel

There's some good news right there. Absolutely loved the first one.