EA Feels The 310 Million Dollar Dagger

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.

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It turns out Electronic Art’s Spore has some digital rights management (DRM) under the hood that’s irking a few video game players. We use the term “few” lightly, as game players use their voices to be heard and let them ring loud! Taking a gander at Amazon.com’s listing of Spore and you’ll see 797 customer reviews with an average rating of 1-star.

What’s the problem with the DRM? It’s almost easier to ask what isn’t the problem with the DRM in Spore. First, it’s intrusive, install Spore more than three times and you’ll have to call Electronic Arts to have them re-activate the game. Are we renting games now?

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No doubt all the negative press will result in a full on revolt, having gamers who’ve not purchased the title ding it with a 1-star to prove a point, why not? How else shall we fight “the man” and their unholy DRM solutions.

Oddly enough, you can find the game pirated already across the Internet, what has this proven? The game was found on torrent sites before it’s release, already cracked. It’s said they’re using a Sony DRM solution, a known DRM solution, which means hackers whom have already cracked this protection before had it un-shelled in a matter of hours.

What did the DRM get Electronic Arts but a PR nightmare and a bunch of people stealing it off the Internet now that they know it’s already available? Lot’s of publicity for very little gain; imagine the reviews and comments had they chosen to go without a DRM solution and be a pioneer of future technological solutions.Sure, it would be on a torrent site within hours… but it was anyway.

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