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EA Posts Fiscal Q3 Net Loss of $641 million, Cuts 1100 Jobs, Closing 12 facilities
- Thread starter FrankT
- Start date
hydragonwarrior
Member
viciouskillersquirrel said:
Bingo.
Tideas said:
NPD for December shows Ubisoft had no problem competing with Nintendo for holiday sales
EA got what they deserved imho, they shit on the Wii and therefore did not earn enough money, you put quality and well marketed games out there and sales will come. EA did neither
Had they released Rock Band 2 alongside the others they could have enjoyed some added $$$$ but they shit on Wii owners and left the money sitting on the table
leroy hacker
Member
cw_sasuke said:
Because John Riccitiello, EA CEO, was a founder and partner at the private equity firm from which EA bought Pandemic.
Rapping Granny
Banned
viciouskillersquirrel
Member
The sequelitis (milking cash cows) is unsustainable in the long term though, and EA know this. Long-standing series eventually decline in sales and even if sales remain flat, it doesn't help you if costs skyrocket.Mooreberg said:
Struct09 said:
Well when you toot your own horn that Rock Band was your best selling game I think you would have a vested interest into why you are loosing out on potential cash
There should have been nothing in Rock Band 2 Wii that needed the entire 2 month delay besides wanting to tier the releases just as they had done before (when they conveniently forgot a Rock Band 1 for Wii)
viciouskillersquirrel said:
Pretty much. Every major 3rd party should be looking to create a new and good IP for the Wii long before this generation is over. If their core IPs still have some legs in them, bring them over and make sure they damn well work. Mindshare is going to be absolutely vital throughout the remainder of this generation and pushing into the next.
SimpleDesign
Member
I bet that BioWare/Pandemic purchase hurts a lot right about now.
Sucks for the people losing their jobs while the losers who call the shots get to keep theirs.
Lord of the Rings: Conquest is horrible. 
Sucks for the people losing their jobs while the losers who call the shots get to keep theirs.
SimpleDesign
Member
Yes they did, was not a smart move at all. It came with Pandemic as well, but they're laying off a lot of people from that studio._tetsuo_ said:
Y2Kev said:
Yes, but with all their new ips, they did alot worse than last year. That's after all the restructuring. The real answer is they should have made some good games for the number one console, but they did not and this is what happens. Instead, you get ME and Dead space for HD consoles which have bloated dev costs and when they do not do as expected, it cuts in far worse than a wii bomb.
Not to say that those games are bad, because they are very good games, but one of them should have been a wii game (mirrors edge me thinks). So, the lesson here is actually give really support to the wii and not alienate the market with all play title. What sports fan is going to buy that shit?
Ranger X said:
Fixed
Marketing is one of the reasons that this shitstorm is happening. 10:1 madden would of sold better if they just took the all play off. Its like they hired the class idiot as wii marketing director.
And the "we can't compete with nintendo" is just a bullshit line so the devs can make their dicks look bigger by allocating more resources to HD to make shiny graphics.
viciouskillersquirrel said:
This I also agree with. But when the new properties are not working...?
I'm wondering if part of the problem for EA is that their most successful games in the fall are from developers they do not own (Harmonix, Valve). Clearly what L4D sold on 360 was great for valve, and another heap of cash to throw in the vault along with Steam sales of the PC version. Did it really generate much money for EA relative to what they would have gotten if Dead Space sold that well?
And in the case of Rock Band, their entire goals seems to be DLC anyway. They are not releasing a new retail Rock Band this year. Money for Harmonix/MTV made through DLC on PS3 and 360 may not do a lot for EA. And the Wii version may not be a big deal for Harmonix if the limited storage space or not having the console connected keeps people from buying more content.
The fact that two of EA's biggest games get a lot of money from either digital distribution or selling DLC could be part of the problem.
You look at Activision owning Guitar Hero, and they are going to have multiple retail releases annually across all platforms.
dasupremeone
Member
The biggest publisher in NA and second EU, will have to still release 11% of its workforce.
WTFIFA indeed, sold 7.8 Million units, more than GTA 4, SSMB and COD WaW.
WTFIFA indeed, sold 7.8 Million units, more than GTA 4, SSMB and COD WaW.
MotherFan said:Fixed
Marketing is one of the reasons that this shitstorm is happening. 10:1 madden would of sold better if they just took the all play off. Its like they hired the class idiot as wii marketing director.
And the "we can't compete with nintendo" is just a bullshit line so the devs can make their dicks look bigger by allocating more resources to HD to make shiny graphics.
The All Play goofy cartoon boxes were horrifically ugly. They can keep the name and simplified gameplay if they want, but they really need to bring back normal box art and graphics.
evil costanza
Banned
Jackson said:
100 on top of the 1000
It kinda stinks that the year they try some original IPS like Mirror's Edge and Dead Space, the bottom line goes further into the red. EA was really heading into direct I think a lot of gamers would like to seem them head, I hope they aren't discouraged. I think the company has room for more enthusiast focused titles like Dead Space and their mainstream hits like Madden.
Jackson said:
These are the same layoffs, Jackson. Here is the timeline:
1) EA announces the layoff of 1,000 members of their workforce. This is the part you know about.
2) EA announces, approximately a month later, the release of an additional 100 members of their workforce. You may not have heard about this, but it was announced at Christmas.
3) EA combines these layoffs in to a single report for this financial release. The total is 1,100.
EA had ~10,000 employees. They now have ~8,900. Expect more staff cuts to follow unless there is a rapid turnaround.
MotherFan said:Fixed
Marketing is one of the reasons that this shitstorm is happening. 10:1 madden would of sold better if they just took the all play off. Its like they hired the class idiot as wii marketing director.
And the "we can't compete with nintendo" is just a bullshit line so the devs can make their dicks look bigger by allocating more resources to HD to make shiny graphics.
Well yes I totally agree with you.
Actually, the whole industry is a bit to blame with that. All those corporate dudes that think they know about the market they are on. (they clearly don't) and All Play Madden is a PRIME example.
It's freaking sad.
viciouskillersquirrel
Member
The name and simplified gameplay are part of the problem too. Half the work involved in marketing involves choosing the right product to sell and this is where they are fundamentally failing. Simplified gameplay changes the quality of the core product and drives their customers away. The gameplay needs to be just as deep as the other versions but geared to the Wii controller and online platform.Zzoram said:
Were I the marketing manager at EA, I'd be appalled at the damage the All Play brand might do to the Madden brand.
bcn-ron said:
http://yahoo.brand.edgar-online.com...3970-38645&type=sect&dcn=0001193125-09-017566
Their restructuring charge was $18 million.
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