Mega publisher Electronic Arts has revealed its second quarter fiscal results and the situation is less than stellar. Following a $95 million loss in its first quarter, EA has announced a loss of $310 million for the quarter ending September 30. Titles that excelled in the quarter included Madden NFL 09 (4.5 million units sold), Spore (2 million units sold) and the new MMO Warhammer Online (1.2 million units sold).
Due to its continuing losses, EA has also announced company plans to let go about 600 employees -- 6% of its entire work force. Coming into the holiday season, EA expects to close the gap caused by losses but something tells us that at least 600 people could care less.
Reader Comments (Page 1 of 2)
10-31-2008 @ 10:09AM
stinger503 said...
I wonder if those 600 people were from public relations?
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10-31-2008 @ 10:09AM
Philip said...
well when your a giant, and buying several companies, you have to let people go
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10-31-2008 @ 10:12AM
Waynow said...
Theyve been releasing the same sports games for years. Maybe people are finally starting to catch on...
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10-31-2008 @ 11:30AM
tabicat said...
Apparently not, because Madden NFL 09 is one of the big sellers.
10-31-2008 @ 10:17AM
ploppy said...
Must be all that paid DLC that you can unlock just by playing the game.
Or maybe EA has over invested...this IS the company who tried to grab Rockstar and Epic is it not?
Credit Crunchy Nut Cornflakes
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10-31-2008 @ 10:26AM
Rambler said...
Maybe if they made their games with a higher quality. and actually provide support for said games after they are released, maybe people would buy their games.
... an original game never hurts either
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10-31-2008 @ 10:31AM
tomuss said...
mirrors edge and spore not original enough for ya?
10-31-2008 @ 11:17AM
D dogg said...
Or how about Dead Space...
And let's not forget, they're one of the ONLY companies still in the RTS realm as far as series.
We still have Starcraft but no more Age of Empires.
10-31-2008 @ 12:30PM
Waynow said...
I dont think it was EA who made spore. And theyre the only company making RTS games because theyve eaten up the other RTS companies. (rip westwood)
10-31-2008 @ 6:31PM
Xav de Matos said...
Spore was made by Maxis. Maxis is owned by EA.
11-01-2008 @ 3:08AM
Waynow said...
Because EA ate up you moron
10-31-2008 @ 10:27AM
joeybeast said...
Let's assume the 600 people on average make $ 100,000 a year.
Each quarter they cost the company 600 x 100000 x 1/4 = a mere $15,000,000.
Come on EA by my calculation, you need to fire 12,000 people to break even.
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10-31-2008 @ 10:31AM
salty said...
I hope you're not a business major.
10-31-2008 @ 10:34AM
Perno said...
Wow that's a lot of people making $100,000 per year.
10-31-2008 @ 10:49AM
joeybeast said...
I'm a renegade accountant.
10-31-2008 @ 3:46PM
Garfunkiel said...
Here's the problem, joeybeast:
If 600 is ~6% of their workforce, how many employees work there? Hint: Fewer than the 12,000 you suggest firing.
10-31-2008 @ 12:10PM
joeybeast said...
Do you people have no sense of humor?
10-31-2008 @ 12:17PM
Octantis said...
I'm not sure where EA's offices are but if it is on the coasts the people are most likely making more that $100,000. I read a story earlier today where cops in Vallejo California were making $150,000 a year. Figure in benefits such as health insurance and retirement and we are talking real money.
Most likely they needed to fire some people after buying up a lot of companies like Phillip said above. Every time two companies become one you can delete the overlap. Say CEOs, VPs, Accountants, Legal. And keep the talent such as designers, programmers, intellectual property.
10-31-2008 @ 10:29AM
big bundy said...
EA needs to produce more titles like Dead Space. I was never a huge fan of the EA Sports titles. Not saying they are bad, just saying I never play them.
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10-31-2008 @ 10:33AM
Delirium said...
EA needs to appease the gamers, not piss us all off.
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