November 10, 2009 |
Hammered by a steep drop in the sale of traditional packaged video games, Electronic Arts Inc. on Monday said it would cut 1,500 jobs, more than 16% of its workforce, even as the game publisher announced plans to acquire online game developer Playfish Inc. in a deal valued at up to $400 million. The dual moves -- one aimed at trimming expenses by about $100 million a year and the other at increasing profits -- came as the Redwood City, Calif., firm released its fiscal second-quarter earnings showing a 17% decline in revenue from its packaged games business, reflecting an industrywide malaise.
October 22, 2009 |
Need for Speed, Electronic Arts Inc.'s racing franchise, has raced past the 100-million copies mark, making it one of the top five bestselling video game properties of all time. (The other four franchises in the elite 100-million club are the Sims, Mario, Pokemon and Grand Theft Auto.) Developed in 1994, Need for Speed has evolved from a game made by a dozen developers to roughly 100 designers, programmers and perfectionists who obsess over cars. EA has cranked out 15 Need for Speed titles, but it wasn't until Need for Speed Underground came out in 2003 that sales got turbocharged.
August 5, 2009 |
For Electronic Arts Inc., it was a tale of two earnings. One report, based on commonly used accounting standards known as GAAP, was grim. EA said Tuesday that sales plunged nearly 20% to $644 million in its fiscal first quarter ended June 30 compared with the same period a year earlier. Losses swelled to $234 million, or 72 cents a share, from $95 million, or 30 cents, last year. The other report was positive. Revenue grew 34% to $816 million from $609 million in 2008.
June 5, 2009 |
On the show floor at the Electronic Entertainment Expo this week, Electronic Arts' Brutal Legend has been one of the hottest and most heavily promoted video games. Behind the scenes, however, the game is at the center of a brewing legal war. Activision Blizzard Inc., the biggest U.S. video game publisher, filed a $15-million lawsuit Wednesday against Brutal Legend developer Double Fine Productions in an attempt to block competitor Electronic Arts Inc.
May 6, 2009 |
Video game publisher Electronic Arts Inc. posted a smaller net loss for its fourth quarter as the company continued to slash costs in a quarter with fewer hit game launches. Redwood City, Calif.-based EA also reaffirmed its guidance for the current fiscal year, and Chief Financial Officer Eric Brown said the company was "ahead of schedule" on its cost-cutting measures that include eliminating 1,100 jobs. EA posted a loss of $42 million, or 13 cents a share, less than half the loss of $94 million, or 30 cents, in the same period a year earlier.
April 17, 2009 |
John Madden's retirement from television won't mean an end to the lucrative video game franchise that bears his name. Madden NFL has sold 70 million copies and rung up more than $2 billion in sales since it came out in 1989, making the series one of the best-selling in the video game industry's history. Electronic Arts Inc. says it plans to keep churning out new versions.