EA to lay off 1500 workers, close some facilities
Large-scale layoffs have been hitting everywhere in the past year, and Electronic Arts is now no different: according to Gamasutra, the game publisher announced today that it will lay off 1,500 workers by April 2010, after posting a year-to-year decrease in revenue and a net loss of $391 million. About 1,300 of the freshly unemployed individuals will result from the full closure of some of EA's facilities. This will cost EA money at the outset, but they estimate that by dropping the facilities they stand to save about $100 million annually. According to EA CEO John Riccitello, the cuts are happening in "targeted areas," so the company can focus up on its bigger, more lucrative games.
EA has kept up well with the iPhone platform and has released some of its most popular titles to the App Store, such as The Sims 3, Rock Band, and Spore. Consumers still pay a premium price for them, however. For example, Rock Band costs $9.99 and comes with only 20 songs, and charges 50 cents for each additional song. Still, Rock Band ended up selling well, so maybe we'll be seeing more of EA in the App Store in the coming fiscal quarters.
EA also announced today its acquisition of Playfish, whose primary business is Facebook games, for $300 million. Hopefully out of the layoff ashes rises some brutally addictive social-based game for the iPhone.
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Reader Comments (Page 1 of 1)
Fred said 5:16PM on 11-10-2009
Those douchebags are still making money hand over fist. This stinks and yet again leaves a bad taste in my mouth as far as EA goes.
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Joanna D said 6:02PM on 11-10-2009
Did you read the article, it says they made a loss for the period reported.
Fred said 6:11PM on 11-10-2009
Everyone is posting losses. It's all smoke and mirrors as far as I am concerned. They lowered their profit outlook, from what I can tell that's not a loss, that's just money they thought they'd make, but didn't. They didn't take an actual hit. I'm really just saying I'm not surprised. EA is the salt mine of the industry, and I pity the people who work for them.
nintendo fanboy hater said 7:32PM on 11-10-2009
actually fred that is an actual loss
Stephen P said 7:57PM on 11-10-2009
Fred: I must agree with you. It is indeed "smoke and mirrors" and the EA corporate chieftans are doing it because they get a perverse pleasure from watching the looks on their laid-off workers faces! It's not the economy or bad management; it's sadism followed by a massive cover up! Together we can let the world know about these smoke and mirrors!
Fred said 8:55PM on 11-10-2009
Ok, snarkiness aside, if you are EA and you make probably the majority of video games released in the world and you are taking losses, YOU ARE DOING SOMETHING WRONG. Now hey, maybe layoffs are the attempt at correction, but EA has a long history of not giving a damn about their people so I seriously doubt they exhausted all other options. Does that make everyone feel better?
mike said 10:21AM on 11-11-2009
fred get real,
do you honestly think EA would just keep making millions on... what... Madden 2010? Repackaging the same shit with updated Graphics year in year out?
Video Games???
They don't make guided missile systems dude, they make fucking video games, when the US economy goes to shit, there are consequences.
Fred said 12:09PM on 11-11-2009
That's the wonder of the internet, folks! Take something you deem "small" and compare it to something "big" in order to minimize the importance of the real issue! I'm sure those people losing their jobs don't care if they don't make missile systems they're still just as unemployed as the out of work missile guy. Your comparison leaves a lot to be desired.
Martin said 5:39PM on 11-10-2009
Playfish generates a lot of revenue already, so that was an insanely good acquisition for them. Also, Rock Band songs on the consoles (and PSP) cost $2 each, so complaining about 50 cents per song (when iTunes charges $0.69-$1.29 per song) is petty.
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Mk8ta said 5:56PM on 11-10-2009
That's what you get for being too greedy. Selling a$6 game for $60
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Joanna D said 6:02PM on 11-10-2009
Do you want to give an example of a $6 game they are selling for $60?
iGlad said 6:56PM on 11-10-2009
I am not surprised they are losing money fifa 10 (£5.99) has t be the biggest pile of crap ever to be launched on the iphone by a major developer. I know why they didn't put out a free lite version because no one would buy the full version. I have never palyed anything so bad EA should be ashamed but a company like that has no idea what shame is! Now I know why ppl hate them so much. If I knew how to get a refund I would as I wasted £5.99 which I could have spent on a CD or a pizza!
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psycros said 10:04PM on 11-10-2009
Um, shouldn't this be on Joystiq or something? Esp. seeing as how EA barely supports Apple.
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TheJae said 10:09PM on 11-10-2009
The same reaction I had when Red Alert crashed for the 5th time on my iPhone.
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Roberto said 10:26PM on 11-10-2009
Hopefully these engineers and artists haven't signed any non-compete agreements, or they will spend the next 82 weeks sucking Obama's tit (unemployment).
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