With a second year of major layoffs at publisher Electronic Arts, questions about morale and investor perception surround the company. EA CEO John Riccitiello told IndustryGamers that in the case of morale, those who survived "understand the logic, they agree with it and support it and think we're a stronger company for the moves." The exec stresses that those who remain are "all excited about [EA's] move into digital and direct-to-consumer" -- something that may not have been true when he brought up the strategy two years ago.
Riccitiello also feels that there was a lot of bad press relating to EA's Q2 results -- the one with all the layoffs -- and that "a lot of negative articles were written that entirely missed the point that [EA] felt [it] had a great first half ... sometimes people almost believe more what they read in a newspaper than what they hear from their own company." In fairness, that seems rather understandable, given recent events in corporate America.
Reader Comments (20)
Posted: Dec 10th 2009 10:39AM Spike Spiegel Humble Bounty Hun said
"those who survived "understand the logic, they agree with it and support it"
Of course they do. Otherwise they get the boot too.
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Of course they do. Otherwise they get the boot too.
Posted: Dec 10th 2009 10:45AM (Unverified) said
After all these losses, you'd think someone would be pointing fingers at Riccitiello for his mismanagement of the company...
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Posted: Dec 10th 2009 10:55AM Spike Spiegel Humble Bounty Hun said
This is a huge company that holds some great gem titles in their catalog. I agree that it comes down to mismanagement. Now he is popping his head out of his cave to pretend like none of this was bad. The bloods on your hands, Riccitiello.
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Posted: Dec 10th 2009 2:27PM Mr Khan said
Not really. The whole industry is trending towards what EA was doing in the last few years: a focus on almost monthly releases of big AAA games, funded by lower-key junk. No one wants to blame anyone because the whole damn industry is doing this, and very few companies are seeing any good come of it.
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Posted: Dec 10th 2009 10:48AM (Unverified) said
I think outside the yes man circle that JR lives most people think that in recent years the acquisitions side of EA has been downright retarded. Buying Pandemic for 150 Million only close it down less than two years later ? Not smart. Bioware cost 800 Million? Sorry they are good, but not that good. Playfish for $300 Million? You have to be kidding me. Oh, and to make up for we will cut payroll by that same amount. I think people were exited when EA seemed to try new things, now they are back to flogging the crap out of the same franchises at great new Wal-Mart prices. Not a recipe for win.
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Posted: Dec 10th 2009 11:10AM arnavdesai said
BioWare was worth it for 800 Million IMO. If you had noticed, all of the big titles from EA this year were from BioWare. Also, BioWare has a really really successful pedigree, almost as good as Blizzard.
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Posted: Dec 10th 2009 10:52AM (Unverified) said
I hate to say it, but I just hope they stay strong and keep that pedophile Kotick and company in their place.
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Posted: Dec 10th 2009 10:52AM (Unverified) said
Find it a bit ironic that they are having to get rid of people now that they have cut back on the shovleware.
(Great artwork by the way)
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(Great artwork by the way)
Posted: Dec 10th 2009 11:16AM Padilla7921 said
I think a lot of people have lost faith in EA. A few years ago, an EA game was viewed as top quality. EA sat around and didn't keep up with their game quality, as seen in just about every single one of their sports titles. Only recently has EA realized that a former reputation only goes so far, and they have been gradually increasing the quality of their games. Peter Moore has worked wonders at the EA Sports division, and the acquisition of BioWare will prove to be the smartest decision they've probably ever made. But, EA as a whole wouldn't be in this position of *regaining their dominance* if they hadn't jacked around for so many years.
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Posted: Dec 10th 2009 11:17AM Padilla7921 said
I forgot to add that faith in EA is slowly being regained by the videogame community. Once gamers decide that EA games are worth buying again, everything else will fall into place.
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Posted: Dec 10th 2009 11:40AM Heston said
"The exec stresses that those who remain are "all excited about [EA's] move into digital and direct-to-consumer"
>.< This guy doesnt get it.
High quality games (Uncharted 2, MW2, AC2, L4D2) = $$$. I bought L4D2 over steam because it was a good game, not because of digital distribution. EA needs to wake up while it still has franchises people like.
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>.< This guy doesnt get it.
High quality games (Uncharted 2, MW2, AC2, L4D2) = $$$. I bought L4D2 over steam because it was a good game, not because of digital distribution. EA needs to wake up while it still has franchises people like.
Posted: Dec 10th 2009 12:10PM spin cycle said
Hey Riccitello, many of your employees work in California and you just got done saying to the press that California is too expensive to employ people in.
So of course they're nervous and have bad morale.
Morale doesn't just come from the bottom, you're part of what sets the tone and your comments aren't helping.
You're lucky in one way, at least Kotick isn't presenting himself as the better alternative to employees in the game industry, not with his "skepticism, pessimism and fear".
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So of course they're nervous and have bad morale.
Morale doesn't just come from the bottom, you're part of what sets the tone and your comments aren't helping.
You're lucky in one way, at least Kotick isn't presenting himself as the better alternative to employees in the game industry, not with his "skepticism, pessimism and fear".
Posted: Dec 10th 2009 9:49PM (Unverified) said
I trust drug companies and medical insurance companies more than I trust EA (they buy out their competition, threaten their critics of pulling advertising dollars for positive reviews, use car salesman tactics to sell their games, take away content from their customers and sell it as "new", and suppress innovation in whatever genre they choose to enter. Their marketing budgets are the biggest part of their development budget.
They've earned their tarnished brand image.
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They've earned their tarnished brand image.
Posted: Dec 10th 2009 5:22PM ch3burashka said
That's right Joystiq, fight the Adobe power and stick to the superior Microsoft Paint!
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Posted: Dec 11th 2009 6:56AM (Unverified) said
At the end of the day, no matter how many articles are written, , the stock price tells the real story,
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