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.
Nice to have a three man podcast again 🙂
@Occulous Rift: This is the first I’m hearing it called an absolute joke after seeing constant praise for this device.
I agree with the bring on the Holodeck sentiment, I’m sure society will fall apart when everyone decides to live in one.
@Simcity offline: This feels a bit like too little too late for me.
@QOTW: I once bought a Neo-geo and ten games for 20 dollars from a pawn shop. The games were a soccor side scrolling platformer, a space game that didn’t look better than Star Fox, a mystery game with very cheap animation, a doom clone and DragonSlayer. Aside from Dragonslayer most of these games looked like they could have been done on the other consoles at the time. We eneded up using it as a media player, funny how a out of date console can play CD’s while the Ps4 and Xbone can’t.