EA
announced a net loss of $391 million in its Q2 2010, which ended September 2009. The losses have increased from
last year's $310 million. In addition, sales, at $788 million, are down $106 million in Q2 2010 from the same period last year. EA CEO John Riccitiello remains positive about EA's outlook, explaining, "EA is performing well, with quality, sales and segment share up so far this year." CFO Eric Brown echoed Riccitiello with his own confusingly half-upbeat statement, saying "We met our second quarter expectations and delivered a record quarter for revenue. Today we are announcing a significant cut in our operating expenses and the acquisition of a leader in social games, Playfish."
Those cuts, revealed
earlier today, will result in the loss of around 1,500 jobs by March 31, 2010.
Last year's restructuring planned only 1,000 layoffs. EA estimates that the restructuring plan will save around $100 million after about $130 - 150 million of restructuring costs. We hope that, this time, the company arrives at a structure that works.
{ Nov 9th 2009 at 5:50PM } 
Reader Comments (Page 1 of 1)
SpyderTaco (PSN: Ar4chNova89) @ Nov 9th 2009 5:59PM
The purchase of Playfish really confused me.
Then I thought about how hardcore it once was to be a Nintendo fan, and it all started making sense to me.
Mirror's Edge 2 will be a collection of mini-games. Mark my words.
skyzbig @ Nov 9th 2009 6:01PM
How ironic is it that when EA were bad, they were raking in the money; and now they're good, they're losing money.
I'm hopeful for Mirror's Edge 2...I enjoyed the first one.
tenor77 @ Nov 9th 2009 6:14PM
I agree that they're getting better and they're getting business from me.
They're not perfect though. The BS extra downloads when a game launches (Madden, NCAA and Dragon Age come to mind) but still they've gotten more business from me as of late.
brian @ Nov 9th 2009 7:26PM
was just about to post this.
i guess thats the reason they just came out with rehased crap, it sold well.
Hope things turn around for them.
Darth Bradwart, The Dark Lord of the Sith @ Nov 9th 2009 6:02PM
Maybe it's time to can Riccitiello? He clearly lacks the ability to run EA.
Trip Hawkins, anyone?
Hooded Miracle @ Nov 9th 2009 6:38PM
Come on, EA! Don't believe in yourselves! Believes in the gamers who believe in you!
Or, alternatively, those who like you more than Activision!
RKN @ Nov 9th 2009 6:48PM
Crysis 2 better come out ASAP!!!
JTUSi @ Nov 9th 2009 7:38PM
EA: It's in the fail
Hooded Miracle @ Nov 9th 2009 8:44PM
You know, they HAVE been turning themselves around. Maybe you didn't notice, but they put out three original games last year that didn't catch on as well as they hoped?
I'm wondering if you bought a copy, to be honest. '_'
Clavius @ Nov 9th 2009 7:46PM
Is it possible that EA has finaly became to big for its own good?
Misfit Toy @ Nov 9th 2009 11:47PM
I agree. EA is a better company now. I've purchased several of their games since the change of heart, including the new IPs Dead Space and Mirror's Edge. And I pretty much buy any game that comes out of Bioware...so that's just a freebie for them. 20 hours into Dragon Age and looking forward to Mass Effect 2.
I just wish everyone could keep their job :-(
Womble @ Nov 10th 2009 4:51PM
""EA is performing well, with quality, sales and segment share up so far this year.""
A quarter loss of 391 million smackos, and they're "performing well".
If they performed any better, they'd be completely out of business.