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.
Hi Guys, Good Episode. I’m sorry I haven’t posted in a while as I have been busy with my newborn son William. I like that you have now expanded to include other game types other thank video games. To Paul’s infamous comment Story is Game Play’s Bitch… I HATE THIS… I really only like games that have stories or enable me to make a story… I hate games that are pointless grinding. I need progression otherwise I stop paying attention and generally stop playing. I still play game from the 90s because back then they had good stories. As for the Steam Machine’s suspend feature, I like the fact they recognize the risk and disable the feature, nothing would piss me off more than suspending the game and expecting it to start back up and finding that the session had expired/become corrupt. It would be great if they can fix it but I don’t think that would change my buying decision. As for the steam machine, I don’t mind the idea if the boxes are cheaper and outperform my gaming PC… otherwise they don’t really make much sense. If I want to play my PC games on my TV I would connect my PC to the TV. Otherwise… keep recording and I’ll keep listening.