PS3 News: EA Losses Rise In Q2, Over 6% Of Employees Laid Off - PS3 News

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EA Losses Rise In Q2, Over 6% Of Employees Laid Off

So they say they didn't want Take-Two and they're just fine pushing forward on their own...well, perhaps "just fine" is a stretch.

Today, Electronic Arts announced their fiscal results for the second quarter ending September 30. Their net less unfortunately increased substantially from $195 million to $310 million, due partly to "larger marketing and development costs." (via GameDaily) On the other hand, net revenue went up 40% to $894 million, and it's no surprise to learn that the big sellers were Madden NFL 09 (4.5 million sold), Spore (almost 2 million sold so far), and Warhammer Online (1.2 million sold). CEO John Riccitiello said-

"Considering the slow down at retail we've seen in October, we are cautious in the short term. Longer term, we are very bullish on the game sector overall and on EA in particular. The industry is growing double-digits on the strength of three new game consoles and increases in the number of homes with broadband internet connections. EA is well positioned to benefit from these technology drivers due to the strength of our creative studios and our broad collection of game properties--from The Sims, to Spore and Madden NFL, to Warhammer Online."

On top of this, EA revealed they would be implementing a "cost reduction plan" that led to over 6% of EA employees losing their jobs. Of the 9,000 people EA employs, about 600 have been laid off due to this plan, which will save the publisher about $50 million in "annual pre-tax costs." The staff reduction was "global," although we've heard that EA Los Angeles and Pandemic were especially hard hit. So anyway, just because net profit is up doesn't necessarily mean your job is safe...not when the net losses are way up, too.

10/30/2008 Ben Dutka

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Comments (10 posts)

Joema
Thursday, October 30, 2008 @ 10:21:37 PM
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They will be just fine when warhammer starts paying out

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Schmitty
Thursday, October 30, 2008 @ 10:21:48 PM
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wow spore.... totally forgot about that

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AntDC
Thursday, October 30, 2008 @ 10:56:23 PM
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If they keep releasing games like Dead Space I'll be happy.

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WorldEndsWithMe
Friday, October 31, 2008 @ 12:31:02 AM
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It's just a good thing they have cleaned up their PS3 act, I think farking that up last year cost them some sales. Dead Space FTW.

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RebelExtrm02
Friday, October 31, 2008 @ 12:32:49 AM
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If they'd remove the install limit on their pc games I'd be happy. I refuse to purchase a game that I don't have control over or feel like I own. Excuse me for enjoying tinkering with my PC that often results in new OS installs and whatnot. They might make more money if they would quit driving people like me to piracy just to be able to have control over my software. Bethesda did it right with Fallout 3 and guess what! I actually purchased the game. Amazing! .......

This is why I love my PS3. It might not have the bleeding edge graphics I could get from my PC but at least I actually feel like I own my games. To me that is much more important.

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Deleted User
Friday, October 31, 2008 @ 1:18:01 AM
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global recession ?

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Wage SLAVES
Friday, October 31, 2008 @ 5:51:43 AM
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Yeah. I shied from Spore the same way. Id NEVER pirate a game though. That is a benefit in consoles well...um maybe just the PS3. Gears2 has been pirated already. Too much love for the industry I dont even buy Used games at gamestop.

Best of luck for EA...

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Arvis
Friday, October 31, 2008 @ 2:16:40 PM
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Speaking of EA, am I the only one here who's played the Mirror's Edge demo? Bleeding BRILLIANT game. One of VERY few games that actually feels "next-gen" to me. I bought a PS3 looking forward to a whole new gaming experience, and Mirror's Edge brings it. Kudos to EA and DICE, I hope the game sells.

-Arvis

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LightShow
Saturday, November 01, 2008 @ 4:44:03 PM

no man, i've played it too.

TOTAL FREAKAGE! gimme a few more days to nail the attacks and disarms, and this game is SOOO going to the top of my "Games I totally want but still cant afford" list, tied with WKC.

i hope they have competitive races, instead of just the time trials. Seeing 8 different Faith's barreling across a single map is gonna be awesome.

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Arvis
Monday, November 03, 2008 @ 1:39:50 PM

You know, I hadn't thought about that, but the multiplayer capabilities for ME would be sweet. Instead of 8 different Faiths, how about using custom characters for online matches?
Hmmmm.....

-Arvis

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