Electronic Arts Posts 2Q Loss, Plans Layoffs

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Electronic Arts posted a massive $391M 2Q loss today and says it will post a net loss for the year. The company also announced that it will lay off 1,500 people to focus on games that have a "higher profit margin".

Electronic Arts is reporting a loss for its fiscal second quarter in what's been a difficult year for the video game industry. The company behind games such as "Madden NFL 10" also said Monday it is laying off 1,500 employees to focus on games that have higher profit margins.
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And so begins the toppling of a giant.

Next up on the chopping block: Activision. Let's do this!
 
This one is too easy. Translation: "focus on sequels, sports and definitely, definitely nothing original or chancy".
 
Layoffs are the right way to go. It would be simply insane to do stuff like increase game quality or even lower prices to make the games more affordable. I bet if someone who worked at EA suggested that they would be fired for being crazy.
 
Dende said:
DRM anyone???

:)
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Exactly. This coming from one of the largest console game makers. Piracy must have played a part in this!!! Console ports to board games next, lets see them pirate that stuff!

Oh wait...
 
They are on the end effects of the economic situation, the simple fact is people have less money so are being more selective on what they purchase.
 
Steve said:
Electronic Arts posted a massive $391M 2Q loss today and says it will post a net loss for the year. The company also announced that it will lay off 1,500 people to focus on games that have a "higher profit margin".
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This proves you can buy the same game with a different numerical value, only so many times
 
Hmmm. I guess none of those fancy MBA types considered going with quality over quantity spaced out over the year and cutting costs by lowering the ad, retail shelf space and drm budget in the transition to digital distribution.

Nahhh, that would be too hard. Let's just turn ourselves into a home for console madden douches and sim-everything troglodytes.
 
How much did EA payout for all the exclusive video game rights to sports?
 
Good thing their bread and butter are those shitty sports games they put out year after fucking year, that's like their biggest cash cow ever.

Hopefully this will help them rethink about releasing games early. Oh and that DRM thing too, considering it costs them a fair bit per game to get going.
 
Gamers are boycotting a number of their games for the DRM mess. EA can disregard them, but those lost sales do start to add up.
 
I wonder if this means Warhammer Online is going to get axed. A lot of potential but so little of it was fully realized.
 
MavMange said:
Gamers are boycotting a number of their games for the DRM mess. EA can disregard them, but those lost sales do start to add up.
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they do. i'd say a part of that is in this reported loss.
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Wow a lot of hate for EA. It would not be good if they went away since they do put out quite a few games in a shrinking PC market. Whether developed or published by EA, Red Alert 3, C&C3, Battlefield 2, Spore, Mass Effect, The Sims Series, etc... are all good games.
 
after playing a bit of nfs:shift its no wonder. their games are so sloppy and rushed its a joke
 
Uhh...People? EA doesn't use activation-based DRM on any retail game anymore. Really you guys need to learn to pay attention.
 
sucks for them but really when they keep pumping out the same crap year after year (ahem Madden) do they really expect people to swallowed up the same garbage they keep releasing?
:rolleyes:
 
And thus the Enthropy takes its course.

When men learn to bring over the model of the Sodium-Potaisum Pump over to their installments then we'll have a case. In the mean time, this will happen over and over and there's no way you can help it.
Oh well, yes, the body dies too.
 
TheCommander said:
Wow a lot of hate for EA. It would not be good if they went away since they do put out quite a few games in a shrinking PC market. Whether developed or published by EA, Red Alert 3, C&C3, Battlefield 2, Spore, Mass Effect, The Sims Series, etc... are all good games.
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if all ea games and that company's entire existence vanished completely tomorrow, it would be a great day. they only pump out games because they are a near monopoly and they make more money by pushing volume over quality. smaller developers are forced to put their best efforts into their limited releases, and the industry is better off that way.
 
I don't really get the hate for EA. They are a business and thus driven by profits, however they have been doing some new IPs recently. All this means is more sequels less new IPs and crappier console ports.
 
Reminds of the hatred for Microsoft

EA has their own fair share of wrong doings but for them to completely go away is not good for gaming

I think they have tried for the last few years to make new IPs and release good games. Not all of them turned to be great titles, but EA has changed a bit in the last few years

I dont know. Just my opinion
 
WAKASHIZuMa said:
Reminds of the hatred for Microsoft

EA has their own fair share of wrong doings but for them to completely go away is not good for gaming

I think they have tried for the last few years to make new IPs and release good games. Not all of them turned to be great titles, but EA has changed a bit in the last few years

I dont know. Just my opinion
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I just got DAo and though is not as remarkably good as they claimed it'll be is better than NWN2.
 
Derangel said:
Uhh...People? EA doesn't use activation-based DRM on any retail game anymore. Really you guys need to learn to pay attention.
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My problem with EA is that they didnt release in past 5 years any game I really liked - some had potential but I hated shitty controls and UI.

Not to mention their crazy prices here in Eu - 50€ (70$) for game ? they can go and **** ** ***.

 
Enduring_Warrior said:
I just got DAo and though is not as remarkably good as they claimed it'll be is better than NWN2.
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I'm enjoying Dragon Age as well despite the fact that I'm not into RPGs

I think it is a great game and I like the storyline despite being a bit conventional
 
krupted said:
if all ea games and that company's entire existence vanished completely tomorrow, it would be a great day. they only pump out games because they are a near monopoly and they make more money by pushing volume over quality. smaller developers are forced to put their best efforts into their limited releases, and the industry is better off that way.
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Hate to break this news to you, but EA DID NOT MAKE ANY OF THOSE GAMES !!

They simply BOUGHT the developers out, and published them. Those games could have EASILY been made by the same developer with a different publisher, or published independently.

I mean if you had 200 million dollars and you threw it to buy out some development studio, so you can give them timelines and leech off their profits, can you honestly say that YOU made the game? Or were even truly involved in making it?
 
Falkentyne said:
Hate to break this news to you, but EA DID NOT MAKE ANY OF THOSE GAMES !!

They simply BOUGHT the developers out, and published them. Those games could have EASILY been made by the same developer with a different publisher, or published independently.

I mean if you had 200 million dollars and you threw it to buy out some development studio, so you can give them timelines and leech off their profits, can you honestly say that YOU made the game? Or were even truly involved in making it?
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Sorry, quoted the wrong person :( and no edit button FTW :( I was trying to quote the guy who said EA made (list of games here)...
 
Falkentyne said:
Hate to break this news to you, but EA DID NOT MAKE ANY OF THOSE GAMES !!

They simply BOUGHT the developers out, and published them. Those games could have EASILY been made by the same developer with a different publisher, or published independently.

I mean if you had 200 million dollars and you threw it to buy out some development studio, so you can give them timelines and leech off their profits, can you honestly say that YOU made the game? Or were even truly involved in making it?
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Well it is not as simple as you make it

It is true that any other company could have bought those developers, but the problem is as soon as EA bought the developers, the quality of the games started to suffer (and some of those studios such as Westwood closed). EA used to rush a lot of their games and it meant buggy software. All the hatred you see now is partially justified. I mean it is easy to hate on EA and everything but part of it is their own fault

Now though they at least try to do it right

They still have ways to go, but as I said in my previous post I don't think it is good for gaming if EA goes down
 
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