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Analyst: EA May Cut More Jobs Due To Underperforming Titles

Odd, isn't it? When we finally wouldn't mind to see some money flowing EA's way, we find they're not doing so hot. Oh, the irony.

EA was forced to lay off about 6% of its overall workforce back in October, and due to under-performing sales of titles like Mirror's Edge, Need for Speed: Undercover and Rock Band 2, Lazard Capital Markets analyst Colin Sebastian predicts more cuts will be made. According to Gamasutra, he believes those three titles aren't "meeting estimates" and this could translate to more layoffs. As a result, Sebastian lowered his predictions for the company's third fiscal quarter revenue, but only slightly from $2.14 billion to $2.07 billion. It's only "slightly" because other titles seem to have picked up the slack, and this includes Dead Space, Left 4 Dead and FIFA 09, which are apparently performing at are above sales expectations. On the other hand, Sebastian is seeing "greater uncertainty" in the company's product schedule for 2009, and EA admits to still being in an "ongoing imperative to manage our cost structure." Said Sebastian:

"We believe further cost and franchise reductions are likely. Importantly, we believe EA is continuing to review its cost structure and franchise base, and it is possible that management will announce further cuts in headcount and the development pipeline (including existing franchises) over the coming quarters."

Okay, so you guys get how great Dead Space is, but despite a few flaws, Mirror's Edge is one of the year's best, too. So in this particular case, we have to ask you to reward EA for their efforts. We'd ask you to do the same with Rock Band 2, but with the economy being the way it is, $60 is probably more than enough to spend right now.

12/9/2008 Ben Dutka

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Comments (34 posts)

shindelion
Tuesday, December 09, 2008 @ 11:23:07 AM
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$60 is too tight on my pocket right now. If it was like $49, I would be more likely to pick up a game or even two. But I'm just waiting and looking out for deals for boxing day. Still enjoying R2 and Disgaea 3.

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Joe_III
Tuesday, December 09, 2008 @ 11:29:26 AM
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RB2 is really underperforming? Really? Wtf kind of residual sales were they expecting?

I'll go get a copy of L4D today. Or maybe NFS.

Mirror's Edge can die in a fire for all I'm concerned. Wasn't that good a game. For supposed free travel, you were way to limited in where you can go. But that always happens in games advertised for their number of options...

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killzone100
Tuesday, December 09, 2008 @ 11:44:25 AM

Atleast far cry 2 lived up to what they said you would be able to do.

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PS3_Wizard
Tuesday, December 09, 2008 @ 11:43:32 AM
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yeah i didn't really like Mirror's Edge either. WAY too short, and it got a bit repetitive after awhile. I'm glad to see EA struggle a bit tho. All too often do we see them strut their financial muscles and try to buy out other development companies.

If they continue on that path, Soon EA wouldn't have any competitors and games would be lacking. Sort of like how EA bought 2k football. Now madden doesn't have any game to compete with and the games are suffering for it.

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shindelion
Tuesday, December 09, 2008 @ 11:47:11 AM
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you know what i'm pissed of at EA for not making more sequels for IPs that we all know and love. SSX should have been made for the new gen system but they got what is it "Shawn white snowboarding" the heck.

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Troy Powers
Tuesday, December 09, 2008 @ 11:55:29 AM

I'm with you on this one. SSX was a great series. I still play it. Kaori kicks ass! :D

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Arvis
Tuesday, December 09, 2008 @ 12:48:36 PM

Oh my goodness, both of you are my heroes. :)

The first 3 SSX titles were all sheer snowboarding perfection. I miss Zoe so much... :( On Tour was a letdown despite a FREAKING AWESOME soundtrack (Bloc Party and Jurassic 5 ftw) and don't even get me started on that awful SSX Blur motion-controlled cataclysm...

-Arvis

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Troy Powers
Tuesday, December 09, 2008 @ 3:41:54 PM

On Tour was the only Playstation SSX game I didn't buy. Can't remember why. What was so bad about it?

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Arvis
Wednesday, December 10, 2008 @ 1:18:03 PM

Troy,

There was no emphasis on characters in On Tour and the difficulty curve was spiky. I liked the character creator and the addition of skis, but it just didn't have the same feeling as the SSXs of old.

-Arvis

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Troy Powers
Tuesday, December 09, 2008 @ 11:54:23 AM
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I also wonder what they were expecting for RB2. I think most people who bought RB2 already had the first game, so only bought the disk, with none of the peripherals. Would be cool to have the new guitar, but who has money to burn right now?

I guess I'll pick up Dead Space eventually, but right now it's waiting behind Valkyria Chronicls, and Naruto.

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whooka
Tuesday, December 09, 2008 @ 11:56:28 AM
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If you consider games like Rock Band 2, while it's a great sequel there's really not enough in it to merit spending $60 for those who already own Rock Band 1, especially since the DLC for Rock Band 1 (and 2) just keeps on coming. I had Rock Band 1 already with all the instruments so only bought the game disc for Rock Band 2 (and eventually a Rock Band 2 stand alone guitar coz my crappy second Nyko guitar broke) where I'm sure EA was counting on more sales of the Special Edition but they blew that by not making it much of a savings over buying the game and the instruments seperately (Rock Band 1 Special Edition was considerably value priced imo). I really think since the fundamentals of these music games, and their controllers, are all the same, it's just a bad economy to release games in that aren't exactly 'necessary' when you have the first version. I bought Prince of Persia last week which was the first PS3 game I bought in months. Since they are kind of pricey these days I'll wait until I've read at least 10 different reviews before I decide to buy and even then only if it's something I really want. Other then that I can subsist on DLC and small (cheap) PSN games.

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Fane1024
Tuesday, December 09, 2008 @ 6:23:06 PM

You could not be more wrong about RB2. Even if you don't want the somewhat improved instruments and VASTLY improved gameplay, you get 104 songs for $60. Even if you only like 1/3 of them, it's still a better deal than DLC.

I'm not saying that there isn't still a lot of room for improvement, but the fixes they made make so many aspects of the game much smoother. Could it have been a patch? Maybe, but the song-to-dollar value makes that point moot.

p.s. I bought the whole set, despite having two full sets already ($99 each).
Last edited by Fane1024 on 12/9/2008 6:31:28 PM

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Troy Powers
Tuesday, December 09, 2008 @ 9:14:18 PM

I agree with Fane. With the updated graphics, more gameplay modes (with no-fail mode, now I can let my 4 year old play along when she wants to), and 100+ songs, RB2 is a steal!

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Tim Speed24
Tuesday, December 09, 2008 @ 12:06:32 PM
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Only game I enjoyed out of the ones mentioned was Dead Space. For a new IP it was very polished.

Mirrors Edge was mediocre, not suprised at the low sales with all the GREAT games that are out right now.

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shaydey77
Tuesday, December 09, 2008 @ 12:19:33 PM
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i only saw the first add for the new NFS two days ago.But im alrady getting LBP for christmas..Sorry EA!

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Arvis
Tuesday, December 09, 2008 @ 12:52:06 PM
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EA already got my money for Madden.

I wonder how much their "ongoing imperative to manage their cost structure" is affecting their CEO's salary...?

-Arvis

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WorldEndsWithMe
Tuesday, December 09, 2008 @ 12:53:20 PM
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I think even with recent releases (And Dead Space was very cool) they still have some PS3 stigma attached to them for previous F ups. Although I'm glad they didn't port Valve's Left 4 Dead, I hear it's a decent title but those ports are always bad and Valve can lick my taint.

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Joe_III
Tuesday, December 09, 2008 @ 2:55:00 PM

What on earth could you possibly have against Valve?

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Arvis
Tuesday, December 09, 2008 @ 2:58:44 PM

You besides their obvious and pig-headed bias for the 360? Or were you being sarcastic? ;)

-Arvis

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WorldEndsWithMe
Tuesday, December 09, 2008 @ 5:27:29 PM

I think Joe was being sarcastic, but whatever the case Valve, and to a greater extent that Gabe guy, hates PS3.

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Shatterday
Tuesday, December 09, 2008 @ 3:28:57 PM
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Thats what EA gets for sucking.

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superjew
Tuesday, December 09, 2008 @ 3:31:48 PM
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I have L4D on the PC and yeah, I'd say that Valve not porting it is a shame because it's a pretty decent game. I'm fairly certain that they are adding more to it as well, so it'll be interesting to see some evolution in the process. I'm glad I only paid forty bucks for it as well.

I think Mirror's Edge needed people who were better at translating the idea, and I still think it'd be a more interesting game in 3rd person, I'd think the presentation would have been a bit better that way if they introduced some cool animations. I only played the demo but hearing how short it was, well, you generally get what you deserve when you make half a game to try and boost DLC sales.

As for RB2 and NFS, well, there are too many NFS games and no one could afford RB2, not to mention it probably isn't worth the money with the trillion GH and RB games coming out at a breakneck pace.

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ImTheMan
Tuesday, December 09, 2008 @ 3:35:50 PM
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Looks like Sony needs support too with Sony also cutting jobs

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bearbobby
Tuesday, December 09, 2008 @ 5:55:11 PM

Dude, most every company is making some sort of sacrifice or job cuts to brace for a weakening economy. Microsoft employs only half the amount of people as Sony, you can bet your biscuits that they'd be making cuts too if they employeed twice as many people as they do now.

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Fane1024
Tuesday, December 09, 2008 @ 6:34:06 PM

@ bearbobby

I suspect this is the same troll who's been booted twice by Ben. I think the name's a giveaway, even if his posts weren't.

Don't feed him (it?).

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ImTheMan
Tuesday, December 09, 2008 @ 10:28:09 PM

@ fane stfu u idiot

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Godslim
Tuesday, December 09, 2008 @ 4:01:46 PM
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i would get mirrors edge but im a bit short on the moneys at the mo

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Saber1989
Tuesday, December 09, 2008 @ 4:11:36 PM
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how come they expect to make money on Mirror Edge lol. I hope they wont waste their time on a game like that again. Fifa 09 hell yeah awesome game, the only game I can never get tired of, as well applaud to Dead Space, finally getting the recognition it deserves.
Surprisingly to Rock Band 2, great sound track, but I actually waiting after the holiday season to buy the Guitar Hero World Tour full set and buy the game Rock Band just the game not the set.

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FallenClyro
Tuesday, December 09, 2008 @ 5:55:30 PM
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Don't worry EA! I'm buying Mirror's Edge for Christmas :)

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Xanavi23
Tuesday, December 09, 2008 @ 8:43:58 PM
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Stop making crap games ?

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Wage SLAVES
Tuesday, December 09, 2008 @ 9:18:20 PM
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Im not gonna lie..I have almost NO money because Im buyin as much gold and silver as I possibly can. If the economy wasnt in such upheaval I'd be supporting EVERYONE (as far as games).

I still havent gotten around to Dead Space and that Demo was Kick Asss!!!!

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Xanavi23
Wednesday, December 10, 2008 @ 9:18:14 AM

No worries, its time to be safe with our cash.

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Wage SLAVES
Tuesday, December 09, 2008 @ 9:19:21 PM
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Last game purchased was Resistance 2. And I never buy second hand..

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Saber1989
Wednesday, December 10, 2008 @ 7:00:01 PM

why not dude, the ps3 second hand is the best thing ever, since blu rays are very hard to scratch. I always try to to see and wait for a second hand game of a new one, unless its either FIFA 09, or any game that I am so hype up for like Dead Space, plus its cheaper.

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