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.
@Notch selling Mojang to Microsoft: I was a bit apprehensive when I first heard this story. Though we have no confirmation I’m taking the silence as to mean a deal is being discussed and nothing is finalized yet. The more I thought about it and after listening to your take on it I think it could be alright. I’m just concerned with what they might charge for using the PC version. I’ve also come to be used to Mojang having added features with each new version release and I hope that continues. I’m not so bothered by Notch selling the company since he’s walked away from Minecraft when he did the Full release a couple years ago. I hope that we will also still be able to use our own custom skins, resource packs and mods for the PC.
@Good games worth paying for: I do agree with the sentiment that quality games are indeed worth paying for. Like Skyrim was and I’m sure a lot of hard work went into that game. The quote “a terrible game lasts forever” is right when you have the Atari ET as an example.
@80’s shows: I got both the Dungeons and Dragons and Captain N show references , I loved both shows as a kid.
@FFVI: I knew I had forgotten to mention Terra from FF6, I feel that the first half of that game was about Terra and Celeste the second half the game. I remember the argument I got in with my friend over this when he noticed that I wasn’t using Edgar or Locke in my party and he questioned me “Why aren’t I using the main guys?” My response was “what main guys? Terra and Celeste are the heros and he got so mad and yelled at me that Edgar was the hero. How can he be the hero, or Locke, when you can beat the game without them at all? More over the whole story revolved around the Espers and the empire trying to use them.
And just FYI I am a guy but that doesn’t mean I can’t emphasize with women or feel rejected when I hear things like “Girls won’t like you if you play games, why don’t you play a sport instead?”
I also did misunderstand your point Paul, thanks for clearing it up.
@QOTW: I remember making a few custom units in CIV 2 and using the map editor. I’ve played around with programs like RPG Maker and other similar RPG games like Neverwinter. The amount of work in making even the smallest dungeons or quests is just tremendous so I have to give it to those who make entire games worth of content and quality work. You do get what you pay for.