Boss Riccitiello admits that the industry has become “weaker than originally expected”
Electronic Arts has seen both its losses increase and its revenue fall for its fiscal Q1 ending June 30th 2009, with boss John Riccitiello admitting that the video games market has proved weaker than expected.
Losses for the period climbed from $95m in the same period in 2008 to $234m this year. Revenues fell from $804m to $664m year-on-year. However, operating costs dropped significantly, landing at $25m. Last year that number hit $239m.
CEO John Riccitiello said of the results that “the industry is weaker than we originally expected, and we remain cautious on the macro-environment”.
EA now estimates full-year revenue of between $3.7bn and $3.85bn. Upcoming titles for the rest of the year include Need for Speed: Shift, Need for Speed: Nitro, FIFA 10 and The Beatles: Rock Band.
The publisher added that it is about 90 per cent of the way through its ongoing internal restructuring plans.
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Comments
How?
What?? How is that possible? I was under the impression EA was a well oiled machine capable of withstanding these economic conditions with minimal impact. To see statistics like this is surprising to say the least and creates a bleak picture for the industry if the 2nd largest company in the world struggles to break even how are smaller more vulnerable companies supposed to survive? However looking at there upcoming titles I would say breakng even will be a piece of cake over the christmas period.
...
MDS, this has been going on for a while now. For last year's October-December quarter EA's losses were a staggering $641 million compared to $33 million from the year prior.
Its not the industry
Its not the industry failing as much as the company gaining major losses due to incompetnece. Want proof, go look up Warhammer online subscription #'s in 1 year changes, then go read the games official forums as to just WHY this has happened. Its not the industry failing, its EA's stupidity for not listening to the playerbases in their titles. When you release with 800k+ subs, then lose the majority and leave around 13,000 active after 1 year because your development team wants to keep their own characters overpowered and provide an unbalancfed game, you tend to lose money. EA needs to drop Mythic and rebuild ASAP, if they want these #'s to re-balance.
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