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, great show again. 🙂
I like the idea of turning in a CD or just even having the old DRM code to get a digital version of the game. This is what Blizzard does with their library. I was able to get digital versions of Warcraft III and StarCraft because of my old DRM codes I had been holding on to. I think more companies should do that since we did buy the game, why should we have to pay again for a digital version?
@Steambox: I thought there was only going to be one but apparently there are going to be 13 of them priced from cheap to VERY expensive. This may be a good and easy way for people to find the steambox that will be suited to their needs.
@Sony streaming old games: I agree that I want this and that they should make their entire library available. The fact that Jordan still has a functioning backwards compatible Ps3 didn’t go unnoticed. I’d love to get one myself but the issue is they stop making these consoles so it isn’t easy to get an old console to play an old game. Much easier to just get an emulator (at least for PS1 and PS2).
@QOTW: I am most looking forward to Pillars of Eternity, it promises to be a great RPG game. Among other Kickstarter games like Wasteland 2 and Shadowgate.