Electronic Arts Posts Loss, Plans Layoffs (1,500 people )

[DainBramaged]

Electronic Arts plans to cut its work force by 17 percent as it tries to align its business with a transforming video game industry.

The company announced the layoffs of 1,500 people just hours after it said it is paying at least $275 million to buy Playfish Inc., a maker of social online games popular on Facebook, MySpace and the iPhone. The layoffs are expected to save about $100 million a year.

''We are focusing on what works and what matters,'' Chief Financial Officer Eric Brown said in an interview.

Digital content makes up about 12 percent of EA's revenue. But it's growing, while sales from packaged goods are on the decline.

The cuts are in addition to the 1,100 jobs the company already slashed this year as part of a restructuring plan to shift focus to hit games.

On Monday, EA posted a net loss of $391 million, or $1.21 a share, in the fiscal second quarter, wider than the loss of $310 million, or 97 cents per share, a year earlier.

The company behind games such as ''Madden NFL 10'' and ''The Beatles: Rock Band'' reported net sales of $788 million in the July-September period, down 12 percent from the same time a year earlier.

http://www.nytimes.com/aponline/2009/11/09/technology/AP-US-Earns-Electronic-Arts.html

[Taverner]

1. I know folks who work there

Best of luck to them...

[DJ13]

2. 'Madden NFL 10'' and ''The Beatles: Rock Band'' reported net sales

of $788 million in the July-September period, down 12 percent from the same time a year earlier.


Neither title was out a year ago.

:freak:

[ddeclue]

3. EA ought to get into the REAL military simulation game.

The military pays fortunes for simulators of all sorts and who knows more than EA?

They ought to diversify into military simulation.

[MattBaggins]

4. Bye Bye Warhammer

and I almost had my Rune Priest to RR 80.

[DainBramaged]

5. NOOOOOOOOOOOOOOOO I have been playing over a year

in fact they've picked up subscriptions due to the quality of WOW last release.