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EA Posts Fiscal Q3 Net Loss of $641 million, Cuts 1100 Jobs, Closing 12 facilities

Somnia said:
Er you might want to re-think that...

From twitter.
Dead Space Wii? It had better be a ground-up game rather than a port.

Though it's nice to see EA taking such a big risk without knowing how big the Zombie Game market is on Wii beforehand.*

*
That was sarcasm, by the way. This is a classic example of how the people in charge at large publishers are typically extremely risk-averse, as are all execs in the entertainment industries.
 

AstroLad

Hail to the KING baby
Mutant League would be perfect for the Wii:

-Supposedly there's been a big push internally to revive the franchise for some time (don't know if any of these people are still around, but the desire was there).

-Strong brand recognition among many of the lapsed gamers on Wii who are probably reluctant to buy the current Retard Edition-branded EA Sports titles.

-Would give PS360 owners a reason to buy the EA Sports title on Wii in addition to the "core" EA Sports title on PS360.

-The franchise historically emphasized fun over complexity in a successful way that EA Sports has completely failed to do so far on Wii. Its spirit will motivate the developers to do things properly.

-Zombies and monsters appeal to the casuals who don't even know the franchise. Zombies and monsters playing sports appeal to people who don't even traditionally like sports games.

-MUTANT LEAGUE IS AWESOME.
 

MotherFan

Member
viciouskillersquirrel said:
Dead Space Wii? It had better be a ground-up game rather than a port.

Though it's nice to see EA taking such a big risk without knowing how big the Zombie Game market is on Wii beforehand.*

*
That was sarcasm, by the way. This is a classic example of how the people in charge at large publishers are typically extremely risk-averse, as are all execs in the entertainment industries.

They need to market it as well. We have seen how well the late ports to ps3 have done (shit) so there needs to be a buzz. I will buy it if it is done well, but there will be alot of people who won't know.
 

Regulus Tera

Romanes Eunt Domus
Kotaku confirms:

Kotaku said:
During Electronic Arts' Q3 2009 earnings call earlier today, boss John Riccitiello mentioned a Wii game we'd previously not heard about. That game was Dead Space Wii.

It's due out later this year, and is part of a plan from EA to bring a more "core" experiece to the Wii. Riccitiello promises that, despite the technical limitations of the console, everything that made the 360/PS3/PC version so creepy will be there on the Wii.

Want to know more? Sorry. Being a one-sentence mention on a conference call, and not a proper product announcement, that's all we've got at the moment.

Not that they are exactly 100% reliable, but whatever.
 

Rayven

aka surume
It's reprehensible that they bought up devs just to stockpile IPs and then cut the workforce. Talk about "quality" lineup all you want, they are shrinking the industry with these practices.
 

Link

The Autumn Wind
HeartAttackJones said:
It's reprehensible that they bought up devs just to stockpile IPs and then cut the workforce. Talk about "quality" lineup all you want, they are shrinking the industry with these practices.
Are you saying the new EA is just the old EA? Inconceivable!
 

Rolf NB

Member
Y2Kev said:
Well that's weird. Doesn't quite add up yet. The Bioware acquisition was finished before the quarter, right?

Here's a more detailed blurb:
Yahoo said:
GAAP net loss for the quarter was $641 million, including certain charges, as compared with a net loss of $33 million for the prior year. Diluted loss per share was $2.00 as compared with diluted loss per share of $0.10 for the prior year. During the quarter, the Company recorded an estimated pre-tax goodwill impairment charge of $368 million related to its wireless business and a $244 million charge for a valuation allowance reserve on certain deferred tax assets.

Non-GAAP net income was $179 million as compared with non-GAAP net income of $290 million a year ago. Non-GAAP diluted earnings per share were $0.56 as compared with non-GAAP diluted earnings per share of $0.90 for the prior year.

<...>

The Company expects to incur total restructuring charges, including severance and facility closures, of $65 to $75 million, which will be recorded over the next twelve months.

Joe211 said:
Platform Net Revenue Mix (as a % of Net Revenue)
360 16%
PS3 13%

it"s just for NA?
Total earnings for the company are always a worldwide thing.
 

FrankT

Member
HeartAttackJones said:
It's reprehensible that they bought up devs just to stockpile IPs and then cut the workforce. Talk about "quality" lineup all you want, they are shrinking the industry with these practices.

Well think about it as well if they had taken on Take Two. Gain on the short term and additional losses on the quarter.
 
EA needs to trim the fat and slow down. They should focus on their core sports franchises and maybe two or three non-sports releases per year, that's it. It just seems to me they're pushing way too many products for any of them to really catch on.
 

HK-47

Oh, bitch bitch bitch.
dasupremeone said:
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.
Unlikely with GTA and WaW
 

Hari Seldon

Member
I'm surprised no one has mentioned the massive failure (in terms of expectations) that is Warhammer Online. 300k subscribers? That is a massive, epic, monstrous failure. And they can't blame marketing, IP, piracy, etc. If Warhammer was cruising at even 1 million subscribers EA would be looking a lot better right now.
 

Ulairi

Banned
Hari Seldon said:
I'm surprised no one has mentioned the massive failure (in terms of expectations) that is Warhammer Online. 300k subscribers? That is a massive, epic, monstrous failure. And they can't blame marketing, IP, piracy, etc. If Warhammer was cruising at even 1 million subscribers EA would be looking a lot better right now.

The game is profitable and they have a solid base to grow from. Not everything needs to have WoW numbers to be successful. No matter how many times 1up yours/listen up will say it does.
 

HK-47

Oh, bitch bitch bitch.
Hari Seldon said:
I'm surprised no one has mentioned the massive failure (in terms of expectations) that is Warhammer Online. 300k subscribers? That is a massive, epic, monstrous failure. And they can't blame marketing, IP, piracy, etc. If Warhammer was cruising at even 1 million subscribers EA would be looking a lot better right now.

Thats actually a very profitable userbase for an MMO. They didnt do themselves any favors by launching near Lich King though.
 
This time period really is the Perfect Storm for developers. In addition to the ballooning costs of game development, there's the fact that the systems that are most expensive to develop for aren't the most successful ones on the market, and of course the looming recession.

Yeesh.
 

FrankT

Member
They didn't mention anything about Dante's Inferno as far as a date, which isn't all that surprising at this point. However, they also did not mention Rage, which is a little surprising and I would have thought he would have outlined a quarter for release if it's for this year. I hope it is hitting this year anyways. Really looking forward to Rage.
 

Neo C.

Member
HeartAttackJones said:
It's reprehensible that they bought up devs just to stockpile IPs and then cut the workforce. Talk about "quality" lineup all you want, they are shrinking the industry with these practices.
Spot on.

At least EA won't buy more studios for a while.
 

C.T.

Member
Did someone post this already?

[...]And as the market leader, the Wii will receive as much focus from EA now as both the next-gen systems together. "Nintendo is the leader; they're getting half our emphasis in terms of title counts," said Riccitiello.

"You live, you learn you adjust and improve," he added, explaining why the company's Wii initiatives would be more successful in the coming year than in the previous year. "This year's title slate is a significant improvement from last year."

http://www.gamasutra.com/php-bin/news_index.php?story=22152
 

diffusionx

Gold Member
HK-47 said:
Thats actually a very profitable userbase for an MMO. They didnt do themselves any favors by launching near Lich King though.

I highly doubt EA spent all the money to buy Mythic, then let them delay it over a year, for a middling userbase of 300,000 people (and that was as of 12/31, who knows what it is now). That's not very impressive and I am sure EA is very disappointed by this game's performance especially after it sold so well at launch. I doubt EA expected WoW type numbers, but there is a big gulf between 300,000 and 10 million. As they say, you don't invest $X to make $X+$1.
 

Vinci

Danish
diffusionx said:
I highly doubt EA spent all the money to buy Mythic, then let them delay it over a year, for a middling userbase of 300,000 people (and that was as of 12/31, who knows what it is now). That's not very impressive and I am sure EA is very disappointed by this game's performance especially after it sold so well at launch. I doubt EA expected WoW type numbers, but there is a big gulf between 300,000 and 10 million. As they say, you don't invest $X to make $X+$1.

If its numbers remain stable for a while, it'll be fine. What it needs is some damn fixes to its system, some overhauls to improve the world PvP (which should have been the fucking point in the first place!), and then its numbers might very well improve. But it has to get through its initial growing pains.
 

diffusionx

Gold Member
Vinci said:
If its numbers remain stable for a while, it'll be fine. What it needs is some damn fixes to its system, some overhauls to improve the world PvP (which should have been the fucking point in the first place!), and then its numbers might very well improve. But it has to get through its initial growing pains.

Well, these are problems that were all in the game on day one (I am one of those who quit). Once an MMO gets that stink of disappointment and failure I think its very hard to turn it around, and that stink is all over Warhammer at the moment. I'd be very surprised if the game gets to 500,000 at any point in its lifetime by now.
 

Vinci

Danish
diffusionx said:
Well, these are problems that were all in the game on day one (I am one of those who quit). Once an MMO gets that stink of disappointment and failure I think its very hard to turn it around, and that stink is all over Warhammer at the moment. I'd be very surprised if the game gets to 500,000 at any point in its lifetime by now.

I quit as well and went back to EVE, which sort of proves my point. If EVE can exist in relative obscurity and slowly be increasing its subscriber base, anything can do it. This whole 'stink' factor doesn't mean as much as others think it does: People with MMO experience know these games aren't perfect at the start, that they evolve, and very few will ever achieve the sort of overall acceptance of WoW.

All I'm saying is, if Mythic can get their shit together, realize what the hell people bought this game for in the first place (ie. it wasn't to play in scenarios or in empty servers), and make changes appropriate to that ... I'll go back to play it. I doubt I'm alone.
 

John Harker

Definitely doesn't make things up as he goes along.
After plowing through Mirror's Edge this weekend, I have to say that last year may be the best year EA has had in a really longer time.

Sure some of their big franchises have really gone down in quality, but they've come out with some awesome new titles this past year. Shame they aren't reaping profits from it.

I went from about 0 EA games in a few years to really enjoying:

Army of Two
NHL 09
Dead Space
Boom Blox
Mercenaries 2
Mirror's Edge

who would have thought this 2-3 years ago?
 
JudgeN said:
Ill go ahead and get this out of the way before Wii fans get here.


"They should made Wii games"

It a shame EA has become one of my favorite companies and now they can't sell the good games they putting out.

It's true, they were genuinely adventurous for once, made decent titles with somewhat original IPs and it seemed to just drive them in the ground for trying something new.
 

Vinci

Danish
AndrewG009 said:
It's true, they were genuinely adventurous for once, made decent titles with somewhat original IPs and it seemed to just drive them in the ground for trying something new.

Costs are hurting them. Not their output. They did this to themselves. Whatever part the recession has played into this, that's not their fault so much - but they, and many other 3rd parties, need to get some cost controls in place 'cause this is ridiculous.
 

diffusionx

Gold Member
Vinci said:
All I'm saying is, if Mythic can get their shit together, realize what the hell people bought this game for in the first place (ie. it wasn't to play in scenarios or in empty servers), and make changes appropriate to that ... I'll go back to play it. I doubt I'm alone.

You probably aren't. Thing is, now EA has to spend a bunch more money to get back the audience they already had, and I doubt they are too psyched about doing that. I think Hari Seldon is right, this game is a disaster for EA even if it turns out a small profit.
 

Vinci

Danish
diffusionx said:
You probably aren't. Thing is, now EA has to spend a bunch more money to get back the audience they already had, and I doubt they are too psyched about doing that. I think Hari Seldon is right, this game is a disaster for EA even if it turns out a small profit.

All they have to do is pay for maintenance and upkeep. Mythic can change the game around over time; it doesn't have to be an overnight, emergency thing.
 
John Harker said:
After plowing through Mirror's Edge this weekend, I have to say that last year may be the best year EA has had in a really longer time.

Sure some of their big franchises have really gone down in quality, but they've come out with some awesome new titles this past year. Shame they aren't reaping profits from it.

I went from about 0 EA games in a few years to really enjoying:

Army of Two
NHL 09
Dead Space
Boom Blox
Mercenaries 2
Mirror's Edge

who would have thought this 2-3 years ago?

I too have recently played through Mirror's Edge and thought it was excellent, I liked the graphics, sound and great presentation, but even better was the gameplay, where i was always absolutely sure of what I had to acheive next to progress through the game, never got stuck!

back to topic, yeah you're right but, too little, too late.
 

Chumly

Member
LINK

EA CEO John Ricitiello has spoken out about the cost of development for Wii titles, saying that for EA the cost is 'a third to a fourth' the size of next-gen development.
Speaking in the earnings call following the company's Q3 financials, which saw its losses increase to $641m from $33m in the same period last year, Ricitiello said: "Development is typically a third to a fourth as much for a Wii game then it is for a PS3 or an Xbox 360 game."

.

Guess thats why they are making more Wii games.
 

Fafalada

Fafracer forever
diffusionx said:
That's not very impressive
While that's true, the cool thing about online games is that their financials aren't necessarily made or broken on their initial success (or lack of thereof) like with retail games.
 

Rolf NB

Member
Chumly said:
LINK



.

Guess thats why they are making more Wii games.
Now that's an interesting quote. Do note though that it's specifically development. Factoring in marketing and logistics costs will pull the ratio downwards (closer to parity).
 

donny2112

Member
bcn-ron said:
Now that's an interesting quote. Do note though that it's specifically development. Factoring in marketing and logistics costs will pull the ratio downwards (closer to parity).

It'd be really nice if they took some of the difference in cost, and spent more on advertising for the Wii games. :)
 

Chumly

Member
bcn-ron said:
Now that's an interesting quote. Do note though that it's specifically development. Factoring in marketing and logistics costs will pull the ratio downwards (closer to parity).
Marketing only furthers the gap since most marketing is spent on the big HD games.

I dont even know what your talking about "closer to parity". Marketing and logistic costs on the Wii would hardly even affect the ratio.
 
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