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Electronic Arts sees loss as it delays 3 games


Yar-El

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MSN Article - Electronic Arts sees loss as it delays 3 games

'Clear and simple, our titles did not perform to our expectations' says CEO

 

NEW YORK - Hurt by weak holiday sales and a slew of charges, video game publisher Electronic Arts Inc. posted a wider net loss for its fiscal third quarter and fell short of analysts' expectations Tuesday.

 

But the economic turmoil was not the main culprit. Chief Executive John Riccitiello said a "a significant portion" of the quarter's shortfall, as well as the company's sharply reduced outlook for the rest of the year, has to do with EA's own performance.

 

...Wedbush Morgan analyst Michael Pachter said he was "really impressed" that EA took responsibility for the weak results, and called the cost-cutting measures "realistic." EA is in the process of laying off 1,100 employees — 11 percent of its work force — and it's closing 12 facilities to trim costs and restructure its business.

 

The company is also scaling back its product portfolio, focusing on high-quality games that are likely to be big hits. Chief Financial Officer Eric Brown said in an interview EA's plan also includes focusing more on games for the Nintendo Wii, which has been far outselling rival consoles like Microsoft Corp.'s Xbox 360 and Sony Corp.'s PlayStation 2....

Star Wars MMO out of the clear?

 

Moved to appropriate forum -- j7

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Yeah, they've announced a version of Dead Space for Wii... they hope to capitalise on the success of Resident Evil 4 Wii Edition and the overall view that there's a lack of "hardcore" games for Wii.
It's about time. Basic capitalism dictates that compaines develop products for users that own the majority of the current hardware; i.e., the Wii, in this case.
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Whenever I see things like this I feel bad for the employees getting laid off; they're the ones getting the raw-est end of the deal. Hopefully they can find new jobs quickly.

 

The promise of more potentially-cool Wii games is nice. The promise of game makers taking less risks ("focusing on...games that are likely to be big hits") is not so nice.

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Meh. Indifferent. Though yeah, I hope the employees will be okay.

 

I am not surprised about setbacks and delays. Just so long as professional companies don't use the whole real life problems as a continual excuse to delay something indefinitely as some companies have.--Which may just have been the squeezing of stones for water as a sales strategy.

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