Publisher EA has denied an unsubstantiated report claiming that it is on the verge of announcing between 500-1,000 job losses after the story spread like the wildfire across the internet this morning.
StartupGrind claims to have confirmation of the claims and says that lower-than-expected sales of Star Wars: The Old Republic and Battlefield 3.
“Estimates put Battlefield 3 sales around 13m units,” the site says. “The company ‘chased’ the launch dumping an estimated $30m into incremental marketing after the game launched according to one source within EA.
“The same thing was done for Star Wars to extend its run and try to improve sales. Star Wars sell through is estimated to now be around 3m units, but the subscriptions which are needed for an MMO to payoff are already declining.”
It goes on to speculate that CEO John Riccitiello is coming under increasing internal pressure to cut costs and get his house in order – a problem that has been exacerbated by a string of high-level corporate defections to rival Zynga.
EA has denied the news, however, offering the following comment to MCV: "There are no lay-offs as such, we always have projects growing and morphing. At any given time there are new people coming in and others leaving. EA is growing and hiring and building teams to support the growing demand for digital games and services."