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.
@PS3 shortage
Shortage would somehow justify high price, right? I mean if a product is rare, it’s expensive, right?
But there’s a problem. A shortage justifies a high price if there’s a strong demand for the product.
I don’t think this is the case.
So my question is, is Sony trying to create a bubble?
@C&C games free:
It could be that the kids playing the new C&C have no clue about the Tiberium ‘universe’, and these downloads are here to bring the younger gamers up to date.
@Xbox Live and MSFT phones:
I’m waiting for the MSFT dishwasher myself, lol …
@EA and used games:
Adding a locking mechanism, as Jennifer says, works if there’s a mandatory online registration in place. That works for new games.
But for older games? Those have everything on the CD/DVD.
@QOTW:
I don’t really care … to manage to do that, EA would need to enforce a tax on all used games retailers. That includes Amazon, E-Bay, Gamestop and the ocasional gamer selling his boxed game to his buddy.
It’s hard to enforce that without a lawsuit that translates into a court order (targeting resellers, maybe?). It’s even harder to check if people actually obey the order.
I smell an EA_FAIL here …
@PS3 shortage
Shortage would somehow justify high price, right? I mean if a product is rare, it’s expensive, right?
But there’s a problem. A shortage justifies a high price if there’s a strong demand for the product.
I don’t think this is the case.
So my question is, is Sony trying to create a bubble?
@C&C games free:
It could be that the kids playing the new C&C have no clue about the Tiberium ‘universe’, and these downloads are here to bring the younger gamers up to date.
@Xbox Live and MSFT phones:
I’m waiting for the MSFT dishwasher myself, lol …
@EA and used games:
Adding a locking mechanism, as Jennifer says, works if there’s a mandatory online registration in place. That works for new games.
But for older games? Those have everything on the CD/DVD.
@QOTW:
I don’t really care … to manage to do that, EA would need to enforce a tax on all used games retailers. That includes Amazon, E-Bay, Gamestop and the ocasional gamer selling his boxed game to his buddy.
It’s hard to enforce that without a lawsuit that translates into a court order (targeting resellers, maybe?). It’s even harder to check if people actually obey the order.
I smell an EA_FAIL here …
@EA
Here’s an idea how about stop spaming games & buying up companies. Just make good games & you will be sure to make munnys. So now pay me lots of munnys to be on ur board, so i can tell you that.
@EA
Here’s an idea how about stop spaming games & buying up companies. Just make good games & you will be sure to make munnys. So now pay me lots of munnys to be on ur board, so i can tell you that.
The PC I’m building should be finished next week, still have to optimize my video & processor clocks. Living in the tropics can really affect the systems temperatures so hopefully the CPU Cooler I’m trialing can help. BTW EVGA really make some sexy motherboards & the layout is awesome.
The PC I’m building should be finished next week, still have to optimize my video & processor clocks. Living in the tropics can really affect the systems temperatures so hopefully the CPU Cooler I’m trialing can help. BTW EVGA really make some sexy motherboards & the layout is awesome.
The Starcraft II closed beta is currently live.
The Starcraft II closed beta is currently live.
I neva played starcraft, is it worth looking into? When i was younger i really got into games like AOE, CIV & C&C. BTW I neva played RTS like Derrick more the Guy he described in the Episode.
I neva played starcraft, is it worth looking into? When i was younger i really got into games like AOE, CIV & C&C. BTW I neva played RTS like Derrick more the Guy he described in the Episode.
@PS3 Shortage
Maybe they’re trying to get rid of old stock before the lower the price again 😉
@PS3 Shortage
Maybe they’re trying to get rid of old stock before the lower the price again 😉
Remember when Jack Tretton claimed he’d pay for every PS3 still on the shelf at launch? He got burned, big time, for that – especially by Penny Arcade.
Remember when Jack Tretton claimed he’d pay for every PS3 still on the shelf at launch? He got burned, big time, for that – especially by Penny Arcade.
Facebook is getting overlooked again….
Facebook is getting overlooked again….