EA records $454 million loss, despite sales of $3.6 billion in fiscal 2008
EA CEO John Riccitiello said that the company has felt "aggressive change" over the last year and was pleased with the revenue numbers (far more than Activision made in its FY08), which crowned EA as the undisputed, number one publisher in North America and Europe for the fiscal year. EA had 27 games reach the platinum mark in sales, 15 of which went double platinum. In the new fiscal year though, Riccitiello would definitely like to see some profit. The company, in giving guidance for FY09, predicts revenues between $4.9 and $5.15 billion. The EA Games label plans to release more than 20 titles, including 9 new IPs, in FY09.
[Via GameDaily]
Reader Comments (Page 1 of 2)
aBs @ May 13th 2008 5:05PM
YES, YES DIE!!!!
Heh @ May 13th 2008 5:07PM
Preparing the torches.
Jack (SFC: 4983 4617 3409) @ May 13th 2008 5:28PM
Guess what guys!? I have a mess of pitchforks in my tool shed. $50.00 a prong.
Curtis the Claw:PSN-ctclaw @ May 13th 2008 5:42PM
Well I just saved 15% on my car insurance, thanks Geico.
Noshino @ May 13th 2008 5:46PM
Hey, Jack just announced that if you fill a customer survey you can unlock the prongs!
Ignatius @ May 13th 2008 5:48PM
Well, at least we now know that aggressive change means loss of profits for EA.
Lawl.
Benny @ May 13th 2008 5:07PM
Where exactly has the money gone... have they seriously spend $4 billion?
Benny @ May 13th 2008 5:08PM
*spent
Heh @ May 13th 2008 5:10PM
All of those CEO lunches in hawaii have finally caught up with them.
Benny @ May 13th 2008 5:19PM
I suddenly understand the expression 'fat cats'. Thanks!
Ironraptor Albion @ May 14th 2008 8:54PM
All the money was spent acquiring Bioware and Pandemic studios.
While the sleeping giant is wounded, now would be an excellent to hit them where it hurts financially.
Kane @ May 13th 2008 5:08PM
Yes go out of business please
Jonah Falcon @ May 13th 2008 5:14PM
Yeah! So the corporate fatcats can get golden parachutes as everyone else gets FIRED! Woo! Who cares about people getting laid off?
Benny @ May 13th 2008 5:20PM
As if you care, Jonah. You've got porn to fall back on (or your dick to fall forwards on).
Jonah Falcon @ May 13th 2008 5:10PM
So... they're down $454M, but they took out a $1B loan to buy Take 2 to up their $2B offer?
Investors at Take 2: Run away. FAR away.
T.H. @ May 14th 2008 9:10AM
I take a management class and remember reading an article last month or was it two months ago. I think it was about their CFO resigning in the middle of the Take Two bid...maybe now we know why.
Nick the Hero of Canton @ May 13th 2008 5:11PM
EA is good for The Sims and...Spore? And they've already butchered the Sims in the last 2 expansions...
Jonah Falcon @ May 13th 2008 5:13PM
Butchered? How?
Worst Review Ever @ May 13th 2008 5:14PM
Wait, wait, wait. Are you THE Nick?
Nick the Hero of Canton @ May 13th 2008 5:26PM
The bugs and all the issues are just inexcusable at this point.
Vol @ May 13th 2008 5:13PM
Be prepared for more rehashed titles with minimal investment and creativity.
Heh @ May 13th 2008 5:17PM
You mean like madden?
colin @ May 13th 2008 8:39PM
i think that was what he was getting at.
Jonah Falcon @ May 13th 2008 5:13PM
Yeah! So the corporate fatcats can get golden parachutes as everyone else gets FIRED! Woo! Who cares about people getting laid off?
Jonah Falcon @ May 13th 2008 5:14PM
Joystiq: Fix reply, please.
Jonah Falcon @ May 13th 2008 5:15PM
Now we know why EA was desperate to buy Take 2 BEFORE Grand Theft Auto IV came out.
Vol @ May 13th 2008 5:20PM
Madden, Tiger Woods, Nascar, shall I keep going?
Phillip @ May 13th 2008 5:22PM
Exclusivity is expensive isn't it EA?
Lone Starr @ May 13th 2008 5:24PM
Monopolies don't lose money like this.
Heh @ May 13th 2008 5:29PM
MS' gaming department would like to differ.
Benny @ May 13th 2008 5:38PM
MS isn't a monopoly in the gaming market.
PojoMofo @ May 13th 2008 5:25PM
wouldnt these numbers also include the $$$ spent on buying Pandemic and Bioware? I dont remember what that numbewr is, but it was big, that probably hurt there bottom line as well
BC_UK @ May 13th 2008 7:03PM
Yes it is included and they cost $800 million.
PojoMofo @ May 13th 2008 5:25PM
*Grabs a pitchfork*
PojoMofo @ May 13th 2008 5:26PM
sorry, tried to reply to abs
Curtis the Claw:PSN-ctclaw @ May 13th 2008 5:27PM
This is the one story bleu could post a comment on and not look like a complete idiot.
Maverick Saturn @ May 13th 2008 5:30PM
Its all Madden's fault >:(
Now see, Fifa was actually making them money :) lol
cold school @ May 13th 2008 5:44PM
Ha ha
/nelson
SWAT Kats are back! @ May 13th 2008 5:58PM
Well, their ability to bully a TakeTwo takeover just diminished
Thank you, recessive market!
RudyHuxtable @ May 13th 2008 6:12PM
only an idiot can claim a half-billion dollar loss as a triumph. Fuzzy math to the rescue.
JakubK666 (Ninja Defence Force) @ May 13th 2008 6:19PM
"half-MILLION dollar loss"
fuzzy reading skills to the rescue.
JakubK666 (Ninja Defence Force) @ May 13th 2008 6:19PM
Sorry, I just had to write that :P
Benny @ May 13th 2008 6:29PM
It was half a billion.
RudyHuxtable @ May 13th 2008 6:35PM
454 million is just shy of half a billion. Fuzzy reading skills to the rescue indeed.
JakubK666 (Ninja Defence Force) @ May 13th 2008 6:35PM
Turns out I'm the one with the shit reading skills after all...
eh ftl
RudyHuxtable @ May 13th 2008 6:45PM
Just for that, I will give you fuzzy love.
Korova @ May 13th 2008 6:14PM
That loss is due to one time charges, like purchases of bioware etc. Without the one-time charges, they made over 300 million or 37% more than last year.
Also they had 27 one-million-sellers and 15 two-million-sellers in the year.
And they have over 2 bln in cash on hand to take two or three or whatever they want really.
There stock is way up.
So they are not going to die. Sorry.
GuardedMarman @ May 13th 2008 6:18PM
Ok...but they still lost the money and may not be able to bounce back to the way they were before they lost it on buying other "one-time" charges.
JakubK666 (Ninja Defence Force) @ May 13th 2008 6:16PM
You guys seem to have no fucking clue about how business works do ya?
Sometimes you lose, sometimes you gain and the key is to have enough money to be a able to afford a loss/bad period.
They might me loosing THIS YEAR due to all the loans as well as Pandemic & Bioware combo, but once they finally buy T2, they'll profit again in 2009.
I wouldn't exactly call it "going out of business" and if you're going to write something like "DIE! DIE! DIE!", you might as well shut the fuck up.
Benny @ May 13th 2008 6:22PM
It might not signal EA going out of business, but this is the internet: home of hyperbole and wild exaggeration.
The loss doesn't exactly incite shareholders to wet themselves with confidence, either.