Analyst: Mirror's Edge, NFS, RB2 sales to spur more EA layoffs
There could be fewer gifts passed around at Electronic Arts' annual Christmas party as analyst Colin Sebastian anticipates the company may let go more employees in the wake of sluggish sales. While EA eliminated nearly 6% of its workforce last October, the Lazard Capital Markets soothsayer predicts that underperforming titles, including Rock Band 2, Need for Speed Undercover and Mirror's Edge, could likely lead to the company to make even deeper cuts.
EA's bottom line was able to keep from being totally dismembered, however, thanks to what the analyst calls "solid sales" of Dead Space, Left 4 Dead and FIFA 09. Even so, Sebastian lowered his third quarter outlook for the publishing powerhouse from $2.14 to $2.07 billion, leaving Scrooge McDuck with plenty to count over the holidays should Disney come knocking.
EA's bottom line was able to keep from being totally dismembered, however, thanks to what the analyst calls "solid sales" of Dead Space, Left 4 Dead and FIFA 09. Even so, Sebastian lowered his third quarter outlook for the publishing powerhouse from $2.14 to $2.07 billion, leaving Scrooge McDuck with plenty to count over the holidays should Disney come knocking.












Reader Comments (Page 1 of 2)
The Dark Wayne @ Dec 8th 2008 6:02PM
What the fuck is wrong with the world when Dead Space and Left 4 Dead only have "solid" sales and Mirrors Edge is "underperforming"
Moptimus Slime @ Dec 8th 2008 6:22PM
Its what I prefer to call "Developer Retardation Syndrome". Its when a major developer sends 2 or more major games out within 2-4 weeks of each other. Think Ubisoft of '03 wit PoP and BG&E
why not the LS2LS7? @ Dec 8th 2008 7:03PM
Mirror's Edge is not that good a game. And yes, I played it, all the way through.
I'm glad EA did the game, as it was a real change for them. But it feels very experimental, and didn't fully succeed.
sicsided @ Dec 8th 2008 7:29PM
@Moptimus
Developers make the games, publishers are the ones pushing them out 2 or 3 at a time.
So today's lesson is what? That's right, we love developers, BUT hate publishers.
Alright, now get in the van....
The Dark Wayne @ Dec 8th 2008 8:04PM
yeah but neither of those games had zombies! Dead Space and L4D do!!!
Dr Jeckyl and Mr ESC. @ Dec 8th 2008 8:31PM
I have to say that this time devs really flooded the market with really good games; the bad thing is that I'll probably play most of them next year.
I have Dead Space waiting on my Shelf with Fallout 3 and Cod W@w (Still need Left 4 Dead,POP,Naruto:Broken bond,Chrono,littlebigplanet,Loco roco 2,Mirrors Edge,Resistance 2 etc etc).
On a side note Banjo Kazooie nuts and Bolts is really awesome, wonder why it got such a bad score (Really loved the Easter eggs like Battletoads 2010 and KI3).
United States of Generica @ Dec 8th 2008 8:34PM
I am waiting for the PC version of Mirror's Edge, I like the look of the PhysX enhanced graphics.
http://www.anandtech.com/weblog/showpost.aspx?i=530
Might not play better (I haven't played console version) but it will look better on my gaming rig. :)
why not the LS2LS7? @ Dec 8th 2008 8:44PM
Those PhysX enhanced graphics are ridiculous.
A few banners? A piece of plastic behind a guy I shoot? They amount to squat.
Haggard @ Dec 9th 2008 2:05PM
Still, some of that stuff is fairly sweet. I wouldn't base my purchasing decision on it but it's nice to have.
Envoy @ Dec 8th 2008 6:03PM
Nintendo Wii, my dear friend. The casuals will own our favorite hobby soon.
Vegeta (aka Ska Oreo) @ Dec 8th 2008 6:38PM
Yep that makes complete sense. It's obvious what's going on. It couldn't possible be because: More people would rather buy Guitar Hero than Rock Band, no one wants to buy another shitty NFS game, and that people would rather spend money on another FPS game than a game that's about running on rooftops. Nope, it's all the Wiis fault. That is definitely a plausible reason.
Foetoid @ Dec 8th 2008 7:08PM
Well said Vegeta. Honestly i think EA needs to cough up NFS:Underground 3. Underground 2 is the last NFS game i thoroughly enjoyed, in fact i finished it 3 times start-to-finish. They need another game like that, bigger and better of course, and none of this police BS.
tifosiotaku @ Dec 8th 2008 8:13PM
Foetoid, are you high? Please find a copy of NFS Porsche Unleashed, like, now. Underground 2 is, hands, down, the worst game in the series.
LaughingTarget @ Dec 8th 2008 8:43PM
The problem with Rock Band 2 is the original was barely out before EA thought it a good idea to put out a sequel.
JoeTheBlow @ Dec 9th 2008 4:37AM
For non-american PS3 owners, that was literally the case.
And we STILL can't buy Rock Band 2 outside the US, SO OF COURSE THE SALES ARE GOING TO BE LESS THAN GUITAR HERO WHICH IS EVERYWHERE!!
What the fuck are EA thinking. This is just an excuse to lay off more people.
"WAAAAH! RECESSION! EVERYBODY PANIC!!"
SecretAgentHam @ Dec 8th 2008 6:05PM
i would own mirrors edge if i had more money. =(
i have RB2 and L4D is under the tree. damn economy... i need monies!!!
Doug @ Dec 8th 2008 6:27PM
Doug's loaning service at your... uh, service! Give me hordes of cash and I will.... Oh wait, that's not how it goes... anymore. DAMN ECONOMY!!!
I coulda been a contenda.
heyo007 @ Dec 8th 2008 6:07PM
My hopes for a Mirror's Edge sequel are fleeting.
Damn. I so hoped for one.
sk8monroe81 @ Dec 8th 2008 6:08PM
releasing mirrors edge at $ 60 in the midst of about 10 better games around the oct-nov time, that offer many more hours of enjoyment wasn't the greatest idea.
mirrors edge is a rental and not much more.
not enough on the disc to suffice a $ 60 purchase.
its a damn parkour games people, we should have known it was going to underperform.
over marketing a game doesnt guarantee sales.
Dirk Dorkelson @ Dec 8th 2008 6:10PM
I'm with you on the first point. Games like Mirror's Edge would sell better if they were released in the first half of the year. Look at a game like Dead Rising on the 360. How well would that have sold had it been up against Gears and the PS3 and Wii launches?
Stacking all the big games into a two-and-a-half month window is bad business.
ice~ @ Dec 8th 2008 6:20PM
Rock Band 2 under performing?! Left 4 Dead under performing?! DEAD FREAKING SPACE UNDER PERFORMING?! DAMM YOU Wii AND YOUR ENDLESS ONSLAUGHT OF SHOVELWARE!!! It saddens and angers me to see such good games under perform, such quality, so many people missing out on the experience and instead playing Carnival Games on the wii, or M&M's Magical Christmas Adventure. These "casual(cash in) games" are tyranny to the gaming industry, LETS PUT A STOP TO THIS! Who's with me? We can all stand in the game sections at our local retailers and everytime someone approaches a Wii or some crap "casual" games, we can warn them! lol if only if only...
Moptimus Slime @ Dec 8th 2008 6:30PM
yes.lets blame year old games and ones that dont even exist for underperforming "hardcore" titles. Heres a little quiz for you, what do the release dates of the following games have in common?
Left 4 Dead
Mirrors Edge
NFS: Undercover
whoever gets it right gets a cookie
Vegeta (aka Ska Oreo) @ Dec 8th 2008 6:43PM
OOOH OOH I KNOW, I KNOW!!! Is it because all of those titles are unfamiliar with the mainstream public and that they'd rather buy Call of Duty or Gears of War, something that they're familiar with???
Nope that makes no sense, it's definitely because there's a mass conspiracy that involves Nintendo murdering hardcore gamers in order to keep sales down for these games. That totally makes sense.
ALLL THE PROBLEMS IN THE GAMING INDUSTRY?? BLAME IT ON THE WII!!!
Meloche @ Dec 8th 2008 6:54PM
Do you really think that people buying Carnival Games are the same that buy Mirror's Edge or Rock Band?
ice~ @ Dec 8th 2008 6:57PM
what I mean is, parents buy games for their children, idk somewhere between 8-12 all these poor quality games that the devs put NO EFFORT into whatsoever and just rush them to the shelves so unsuspecting parents buy them and the publishers make money, i see it happen all the time, quite too often in my family. Meanwhile, there are many other quality games for kids in that age, like Viva Pinata, that they could be buying. By all means im not blaming Nintendo, I'm blaming publishers who put games on the shelves that took 10 weeks to make and sell em for $50 and then people walk into the store, see a cute cover or name or whatnot and buy that game, not giving any other games that developers put tons of care and time into a chance. I shouldn't have said "damm you wii!!" because it happens on other consoles too. But its a major problem on the wii, so i am sorry Nintendo fanboys =( I'll admit it happens on 360 and PS3 too....
Vegeta (aka Ska Oreo) @ Dec 8th 2008 7:06PM
To repeat Meloche's question, do you truly believe that the same parents who would buy Carnival games would buy Dead Space or Rock Band if the Wii never existed?
Stop making casual gaming a fucking scape goat for everything that happens and realize these games are underperforming because they have to compete with juggernauts like Guitar Hero and Call of Duty. People would rather play what they are familiar with than a new IP. And while Rock Band is a popular title, it will always be in the shadow of Guitar Hero.
ice~ @ Dec 8th 2008 7:19PM
I'm not, you're clearly not understanding my point. I'm not bashing casual gaming, hell i think its a good thing for the industry, it gets people into the games. But there are way more better casual games out there than Carnival Games or M&M's Adventures (see: http://www.amazon.com/M-Ms-Adventure-Nintendo-Wii/dp/B00189MNOS/ref=pd_bbs_1?ie=UTF8&s=videogames&qid=1228781806&sr=8-1). There's Wario Ware, there's Viva Pinata, there's the LEGO games. All im saying, is the parents who are buying the crappy casual games are getting cheated out of their money, unless the children are too young or stupid to care =P
I dont want to argue about casual-hardcore games, i just want to make my point that there are good casual games and other good games that just dont stand a chance against the massive amount of crap on the market.
Roto13 @ Dec 8th 2008 7:21PM
Where does it say Left 4 Dead and Dead Space are under performing?
ice~ @ Dec 8th 2008 7:32PM
Sorry, this post says "Solid Sales", but I've read plenty of times elsewhere that they are doing poorly, especially Dead Space. It would help if I had some real numbers here =(
Vegeta (aka Ska Oreo) @ Dec 8th 2008 7:32PM
What the hell does your post have anything to do with the topic in question? We're not talking about whether parents are getting screwed out of their money by buying Carnival games, or if Viva Pinata is a better game for kids. The topic is: Why are games like Rock Band and Mirrors Edge doing poorily and for some reason you are (based on your initial post) putting the blame squarely on casual gaming. Casual gaming has nothing to do with it and it has all to do with the general public not being interested in those games. Guitar Hero is much more heavily advertised than Rock Band so more people go for Guitar Hero and no one really cares about Mirrors Edge. That's the reason, not "Oh my god parents are buying shitty casual games."
ice~ @ Dec 8th 2008 8:16PM
Alright point taken, I'm not gonna stress myself trying to explain my complicated point. But i understand what your saying, that the reason these games are doing poorly is because of the timing of their release, but i guess you see my point on how there are 2 types of casual games, and one is ruining the other. My first post, after reading it again, was worded poorly, and i did sound majorly biased when I really am not, sorry for the confusion
sk8monroe81 @ Dec 8th 2008 8:45PM
ice- mirrors edge is a casual game too.
theres nothing hardcore about it....
just because its not animated (well actually the game cut scenes are animated), doesnt mean its not casual.
and who cares what people buy, its their waste of money anyway.
thats not messing up gaming.
AoE @ Dec 8th 2008 9:09PM
@sk8monroe81,
I think perhaps you have a different definition of "casual game" than the rest of the industry. Here's the wiki definition to help you out:
"A casual game is a video game targeted at a mass audience of casual gamers. Casual games can have any type of gameplay, and fit in any genre. They are typically distinguished by their simple rules, in contrast to more complex hardcore games.[1] They require no long-term time commitment or special skills to play, and there are comparatively low production and distribution costs for the producer."
We know from playing Mirror's Edge (you of course did play it before pronouncing it a casual game, yes?) That the control scheme is hardly a casual setup (try putting the controller in the hand of a casual gamer if you doubt this), pulling off moves, especially in later levels and in the later time-trials takes decent skill and timing... I mean granted they're not point the reticule and pull the trigger hard (I jest, but seriously this game does take far more controller skill to move around the world than an fps does). And of course the production costs and advertising budget for this game were pretty significant.
In summation, Peggle is a casual game, Mirror's Edge is not.
ice~ @ Dec 8th 2008 9:11PM
Yea i wouldn't really consider Mirrors Edge casual
enderjsv @ Dec 8th 2008 6:23PM
It's amazing. Last year I was so optimistic about the direction videogames were heading. 2007 was a great year. Now, I'm saddened at the state it's in. The PC gaming market is plagued by piracy and intrusive DRM. The console market seems to be shifting heavily towards the casual and the kiddie markets. Kung Fu Panda was 14th for the last week of November, but Mirror's Edge didn't even crack the top 50. Lastly, the countries currently in a state of recession and you're ignorant if you don't believe that will have a large impact on the state of gaming as we know it. I'm bummed.
The Dark Wayne @ Dec 8th 2008 8:06PM
the kung fu panda thing might be because it comes bundled with the arcade 360
JoeTheBlow @ Dec 9th 2008 4:42AM
I'd say that its because of the recession (and of course, the wallet-raping time of year that it is)that we are looking more closely at the number of hours our $60 will provide.
One glimpse of "short" or "6 hours long" and its a rental.
This could be good for gaming, i for one was very worried that games seemed to be heading towards a 6-hour long standard this year. This could reverse that trend.
AwesomeTown @ Dec 8th 2008 6:24PM
The past few month's I bought Fallout 3, Rock Band 2, Tales of Vesperia, Gears 2, L4D, the Witcher Enhanced Edition, and a few other games that were on the cheap. I don't have the money or the time for Mirror's Edge, LBP, Resistance2, Valkyria Chronicles, countless DS games, etc. etc.
Ok, now my point, there's just too much competition right now.
JoeTheBlow @ Dec 9th 2008 4:45AM
Good choices all.
However, Valkyria Chronicles is on offer in many places now, i picked it up for £20, less than half the price it was.
Just a stunning game, sank tons of hours in and plenty more left to enjoy.
Go get it!
AwesomeTown @ Dec 9th 2008 7:17AM
Don't tempt me! I will pick it up eventually, though.
Haggard @ Dec 8th 2008 6:31PM
How about releasing Rock Band 2 in Europe for PS3, PS2 and wii? You might get a few sales then..
Shogan @ Dec 8th 2008 6:34PM
Maybe if game companies would stop releasing all the good stuff right at Christmas, their sales per title would increase. There's just too much competition of titles, and other gifts, this time of year. Companies bitched about this last year.
time @ Dec 8th 2008 6:40PM
I thought Rock Band 2 did really well... Didn't they give the developers huge bonuses?
jorojoserojas @ Dec 8th 2008 6:41PM
I've bought more EA games this year than ever before, and not a single one had the word "Madden" in the title. Or a number, aside from Rock Band 2 and Left 4 Dead.
And you know what? All those EA games were awesome. Well, except for NFS - Burnout Paradise covers all my racing needs.
All these games should not be missed.
Nate @ Dec 8th 2008 6:43PM
Biggest issue I see is that they are selling games at 60 bucks! That is ridiculous. lower the price. $40 is a solid price and it isn't like they wouldn't be losing profit. They already are not making any. I pick and choose my games because I cannot afford to be buying a bunch of games before they lower the prices. It was ridiculous how much N64 and PS games cost and in the next generation we got it to $50, and towards the end we were seeing more $40 games.
Nimoy @ Dec 8th 2008 7:01PM
N64 and PS1 games were also $50. The then-next generation PS2 didn't introduce the $50 game.
Most NES and SNES games were around $50. I paid $75 for Street Fighter II Turbo on the SNES. $50 to $60 is really the first blanket price increase in 20 years.
ice~ @ Dec 8th 2008 7:02PM
Rare is making games for $40 bucks now, Viva Pinata TIP and Banjo Kazooie N&B are both $40 and are actually worth $60, i think companies should follow in that direction, i mean some games i just can't justify $60 for, like Mirrors Edge. Excellent game, but $20 too much, i might have to say the same for L4D, because im not sure that game is going to last long at all without the support of DLC on the consoles
Nimoy @ Dec 8th 2008 7:04PM
Nevermind, I think I misunderstood your comment -.-
Sorry.
Dante G @ Dec 8th 2008 6:44PM
I think the problem is this:
Gamers usually know what they're buying. They read reviews and they noticed ME and L4D were pretty short.
Gamers decided those games were not worth $60 and if given the chance they'd rather rent them or wait for a price drop.
So what should EA do? They got some options IMO:
* Release those games during the slow months like capcom does.
* Release them during the holidays but with a $40 price tag.
* Make better and longer games.
sk8monroe81 @ Dec 8th 2008 6:50PM
youre right on the money.
mirrors edge retail for $ 40.
guaranteed million seller. = 40 million revenue
now the game was listed at $ 60 and has sold 360,000 copies approx. which = 21 million revenue.
now i guess that EA spent somewhere between 1 million and 20 million on advertising this game alone.
but whenever a game is listed below the average retail price of $ 60 at launch, most of us wont even give that game the time of day because we feel it is that bad to release at $ 40. if the game has to release at a lower price they probably felt less people would have bought the game, which may be true to.
no right answer exactly.
these companies just make too many games. if they held out till spring 09 im sure EA is releasing 10 more games during that time frame.