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.

0 thoughts on “EA Feels The 310 Million Dollar Dagger”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 705: Commercial BlissEpisode 705: Commercial Bliss

The first Grand Theft Auto 6 trailer dropped, and it has been viewed well over 110M times since. There is much more news post-Game Awards, including Vampire Survivors, Brothers: A Tale of Two Sons, and a ton of demos dropping on Xbox.

The news includes:

  • Stormgate launches Kickstarter campaign
  • Final Fantasy 16 director teases two-episode DLC will expand Clive’s story
  • GTA 6 will release on Xbox Series X/S and PlayStation 5 in 2025
  • Report: Embattled Bungie management insist fans ‘still like us’

Let us know what you think.

The PSN FiascoThe PSN Fiasco

It’s now the US government’s turn to question Sony about its online security, which follows the UK government’s scrutiny into the company’s affairs.

In a letter addressed to PlayStation executive deputy Kaz Hirai, the Subcommittee on Commerce, Manufacturing, and Trade has prepared a list of questions related to the intrusion; the list can be downloaded from the New York Times here. The letter asks several questions that Sony has not disclosed to the public, such as:

  • How many PSN users had a credit card on file
  • Why Sony cannot determine if credit card was stolen.
  • What are Sony’s plans towards increasing its security in the future.

The Subcommittee’s press release states:

“Given the amount and nature of personal information known to have been taken, the potential harm that could be caused if credit card information was also taken would be quite significant. The Subcommittee on Manufacturing, and Trade has a longstanding interest in consumer privacy, identity theft, and industry efforts to address threats posed by unauthorized access to consumers’ personal information resulting from a data breach.”

The Subcommittee is requiring a reply by no later than May 6, as part of a privacy driven effort “to protect consumer information.”

Meanwhile, Kaz Hirai will be holding a press conference tomorrow from Sony Japan, to address the PlayStation Network hacking crisis.

(more…)

Episode 236: Now With PandasEpisode 236: Now With Pandas

This week, Paul is not around, as Jonah Falcon and Jordan Lund discuss the latest news, which includes pandas. Lots and lots of pandas. That, and a Gaming History profile on David Crane.

The news this week includes:

  • World of Warcraft: Mists of Pandaria announced
  • Sony: April PSN outage has resulted in improved service
  • Deep Silver: “There is a clear technology gap
  • Starcraft II DOTA mod will remain free but monetized
  • “Literally, there’s three of us” on console Diablo III
  • Minecraft dev wins interim injunction over Scrolls name

With that is Reader Mail and the Queston of the Week: What was your favorite Atari 2600 game?