Electronic Arts posts larger loss, cuts jobs

[Syxx_Killer]

http://tech.yahoo.com/news/ap/20081030/ap_on_hi_te/earns_electronic_arts

Can't say that I am surprised about this news at all.

[Rilder]

Not like they actually use those workers anyways, they just let todlers bash on keyboards to make games while their actual developers attempt to make Invasive DRM to try and fail to fight pirates.

[Zachstar]

After reading this article.. http://games.slashdot.org/article.pl?sid=08/10/31/004213&from=rss

I say GOOD!

I stood up for EA when it looked like they were turning over a new style with dealing with their customers. These days however it seems they are just trying to see how many people they can alienate before the lawsuits fly.

[Blacklight]

Ultima Online was their best game in my opinion. To this day, that's one of the games that I've had the most fun with. Best MMO ever.

[GlobalExplorer]

There are rumors that making Spore, including the ad campaign, must have cost EA 50-80 million $. It was also seen as a very important point in EAs history, intended to prove that the company is able to make innovative games, too. Now some months after the release, after violent reactions over the games release as crippleware, and its surprising mediocrity, EA must have finally arrived in reality. The game must have been a huge loss in money, and it cost EA reputation, when it was supposed to increase it.

And all well deserved.

You do not always get away when you **** all over your customers, even if you're EA.

[Ilpalazzo]

Rilder just made me spit my drink lol.

I hope they continue to have problems throughout the holidays. Doubt it though. One thing is for sure, myself and those closest to me refuse to buy an EA game that has 'activation limits'. blah blah no point in going on.

[Raptor1]

I thought EA couldn't go lower and were improving, but it seems that they just went over the red line of stupidity with their recent blunders

[CCIP]

Yup, I'd say it's their just desserts.

And as usual, their higher management will blame it on pirates :roll:

[Fincuan]

After reading this article.. http://games.slashdot.org/article.pl?sid=08/10/31/004213&from=rss

I say GOOD!

They've since(or C&C Community Manager has) changed their position on that: http://forums.ea.com/mboards/thread.jspa?threadID=457006

This being EA I'm having hard time deciding on which is the truth: The original statement really was mistaken, or it wasn't and they just got cold feet from the public response.

[Syxx_Killer]

...or it wasn't and they just got cold feet from the public response.

I'm thinking the latter. Red Alert 3 was originally suppose to have 3 activations. It wasn't until after a LOT of public outcry on the forums that they were gracious enough to up the limit to 5. They want such tight control over the people who buy their games that I am curious what crazy scheme they come up with next. Remember that article I posted a while back how the EA CEO basically said that anyone who criticizes their DRM is "too dumb to understand it and they were probably just pirates anyway"? That's the kind of people the consumer has to deal with. I won't be getting Red Alert 3 and am happy to do so. So far, RA3 has had a rather sloppy release. Quite a few people who bought the game got activation codes that don't work. The codes were either not in the activation server or they were a digit short. For the first issue you have to wait until EA fixes that problem. For the second you can contact EA support and wait for a response or you can, through error and trial, put the last digit in (either a 0-9 number or A-Z letter). There's also issues to do with balancing the different sides (Soviets, Allies, and Empire of the Rising Sun).

[Wolfehunter]

After reading this article.. http://games.slashdot.org/article.pl?sid=08/10/31/004213&from=rss

I say GOOD!

I stood up for EA when it looked like they were turning over a new style with dealing with their customers. These days however it seems they are just trying to see how many people they can alienate before the lawsuits fly.Agreed!:up:
Down with EA! Servers them right to screw the clients. Thats what happens when you have bad management.

[GlobalExplorer]

In its quarterly report of financial earnings, Electronic Arts announced that although its net revenue increased by about 20%, or $1.126 billion, as compared with $936 million for the prior year, overall they lost more money. Last year EA lost $195 million, this year was substantially more; $310 million was lost in the quarter. Unfortunately, this will impact employees, and EA expects to layoff about 6% of its workforce as a result.
EA's CEO John Riccitiello commented,“Considering the slow down at retail we’ve seen in October, we are cautious in the short term,”
He was more optimistic on EA's future noting that console growth has recently been in the double digits and broadband connections to homes is increasing. As a result, he said, "EA is well positioned to benefit from these technology drivers due to the strength of our creative studios and our broad collection of game properties from The Sims, to Spore and Madden NFL, to Warhammer Online.”

EA expects to save about $50 million due to the layoffs. EA stock (ERTS - NASDAQ) closed down 1.1%, or off $0.31 to close at $27.73.

Readers may recall that last year EA heavily courted Take Two (TTWO - NASDAQ) in the hope of gaining its titles, most notabable among them the Grand Theft Auto series, amongst others. For a time during merger talks, Take Two's stock reached over $25 per share, though it fell after merger talks failed. Take Two closed up $0.51 today, or 4.6% gain to $11.67.
Those figures got me actually scratching my head:

last year: revenue $936 million losses: $195 million
last year: revenue $1.126 million losses: $310 million

Those are big numbers. But isn't the purpose of a company to make a profit? And yet EA keeps buying studio after studio? With what, 500 million losses? Are we going to see another bubble like in the internet and banking world?

[Raptor1]

I think they mean reduction in profit, not loss of money

[GlobalExplorer]

I think they mean reduction in profit, not loss of money
LOL