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.
Thanks as usual for the episode!
I had a very very sad loss in my life, so I did not find the time earlier to listen to the episode and commentating it.
I did not play anything beside some hours of magic the gathering Arena and try to do some WoW to distract me (was not successful ..)
Most of the last weeks I watched tv shows like Last of us, Terminator Sarah Connor chronicles (old one but did nit saw it) and Big little lies.
Sadly I can’t say anything to all other topics, because I don’t know all the games you talked about … sorry for that :/
Please stay healthy and keep the good work going!
Greetings,
Ralf