Halloween is a scary time of year, no less when you’re posting a $310 million net loss. EA CEO John Riccitiello sees “weakness” at retail in October and we’re betting this isn’t the end of the road of sorrow for game publishers around the globe.
Electronic Arts isn’t unfamiliar with bad times and we’re sure to see them make constant adjustments to their headcount, game releases and press as the economy goes into a bit of a slump. Although the game industry won’t see as big a hit as the financial market, everyone is going to watch their spending during slower economic times.
That slowness is a red flag for the mega-publisher, which says it’s “proactively making cost adjustments now.” One of those adjustments is the axing of some 600 EA employees across the globe. (Kotaku)
Last year Electronic Arts lost a “small” $195 million during the same time, not exactly a gold star on the financial records but it sure looks better than this loss. A few games may crumble under the economic pressures, Tiberium for example, but let us not forget the good times! EA posted some nice figures for Spore, Madden NFL 09, Warhammer: Age of Reckoning and Mercenaries 2: World in Flames.
So, they mixed a few sequels with a few new franchise hits and gave gamers some pretty hot titles for the year. Of course, hot titles in our hand do not always translate to positive revenue in theirs.
Been a long time since I posted last. Bloody university getting in the way of life. Glad to hear that you guys are now part of the next gen. My opportunity has fallen through, as the Game store that I pre-ordered my console from tried to bait-and-switch me twice for a more expensive PS4 bundle which I did not want. That and I withdrew my pre-order as all the games I wanted to play have been deferred till next year. Probably will get it when Elder Scrols comes out.
@EA
Ok I will admit it. Humble bundle was a stroke of genius. EA tried competing with Steam for years via Origin with poor results. But Humble Bundle blew Steam clear out of the water. They may not be making money with this, but Humble Bundle is a brilliant positive publicity generation tool. That is something that EA needs more than money.
@The name is Bond. James Bond. A level 72 Dark Elf Warlock in service of Her Majesty the Queen.
I can see the point of this. Gamers are impressionable people, mostly in their teens and early adult years. They are perfect targets for criminals. If you are fresh-out-of college/university unemployed, your opinions can be easily swayed. Maybe that’s what the intelligence agencies are looking for.
@Neverwdning Story
The media industry rule of thumb is that a franchise should finish with a number 3. Anything that goes beyond that is just dragging the series out. Unless there is a reasonable time gap between the releases (i.e Final Fantasy, Halo).
Assasin’s Creed is now planing it’s 7th game. I am currently playing the 3rd one. Since I don’t do series marathons I will probably catch up to the series in 2020. That is rather daunting. Maybe they should really bring Prince if Persia back…
@Disney’s Indiana Wars: Raiders of the Lost Ark Strike Back. Excelsior edition.
To be honest, I think it is a good thing that Disney is sponging up all the abandoned IPs. Not only do they inject it with money, they do a good job marketing it as well. Indiana was idle for quite some time. He should be out of retirement kicking Nazi ass about now.
PS: I remember Disney wanted to acquire Mortal Kombat. And now imagine a 12+ Mortal Kombat experience. The horror…