Login to access exclusive gaming content, win competition prizes
and post on our forums. Don't have an account? Create one now!
Why should you join?
Click here for full benefits!
Follow our Twitter feedNew Left 4 Dead stuff announced!
SIGN IN/JOIN UP
GamesForumsCheatsOut Now
13 Rise of the Argonauts screens | New House of the Dead: Overkill video | Coronation Street on DS - no joke | L4D Survival Pack: New mode, campaigns revealed | Scene It? Box Office Smash gets DLC | Bionic Commando finally dated | Sega scoops Winter Olympics | Killzone 2 demo LIVE | Wallace & Gromit headed to XBLA | Sega reveals Virtua Tennis 2009 | Scolari signs for Football Academy DS | Three new PSP colours for UK | Bad Company 2 revealed | Home 1.10 update today | Hawx dated | ODST signals the end of Halo 3 | Tekken 6 movie, screenshot update | Euro Killzone pre-orders top 1.1 million | R-Type Dimensions | First Wiiware FPS promises "new standard of FPS" | First Watchmen: The End is Nigh shots | Reeves: "We simply have to suffer a little" | Capcom reports net income fall of‭ ‬95% | Free Radical renamed Crytek UK | EA shares surge in wake of cost cuts
All|PC|PlayStation|Xbox|Nintendo|Games on Demand
Search CVG
Computer And Video Games - The latest gaming news, reviews, previews & movies
CVG Home » News
PreviousTomb Raider DLC dev diary Free Radical renamed Crytek UK  Next

EA shares surge in wake of cost cuts

Cost-cutting measures applauded
Shares in Electronic Arts rose 12 percent to $17.36 in morning trading, following management's announcement of substantial cost-cutting measures.

EA said Tuesday that it would now be cutting 1,100 jobs, 10 percent more than previously announced. Management also has plans to shut down 12 facilities and narrow its product portfolio.

The publisher, which also lowered its fiscal 2009 outlook, announced a Q3 net loss of $641 million, up from a $33 million loss a year ago. Revenue was $1.65 billion, up from $1.5 billion for the comparable quarter a year prior.

EA also pushed major titles into the next fiscal year: Dragon Age and The Sims 3 for PC and The Godfather 2.

In addition, EA reiterated that it would be directing resources towards the market-leading Nintendo Wii with both core and casual games.

Article supplied by Edge-Online

computerandvideogames.com
// Interactive
Share this article:  
Digg.comFacebookGoogle BookmarksN4GGamerblips
del.icio.usRedditSlashdot.orgStumbleUpon
 
Posted by Mogs
:|

Capitalism is ****ing SHIT!

We need a better system.
Posted by The_KFD_Case
The "pure" version of just about any economic and/or political system falls short in some way. Communism certainly hasn't fared better though I do think there are certain aspects of Socialism that are worth fusing with certain aspects of capitalism.

On topic: Meh. EA is a horrendous company if reports pertaining to management's treatment of employees (underpaid while being overworked,) are accurate. Couple this with their atrocious version of "customer service" and "effective anti-piracy measures" (now there's a laugh,) causes me to receive this news with bittersweetness. On the one hand it means that there are people who will remain with their jobs which I think is a positive thing. On the other hand it means there are more unemployed people now and that EA gets to continue its virtual rape of the gaming world.
Posted by Mogs
Well there's just something very wrong with any system that rewards a company for putting people out of work, which is effectively what's happening here.
Posted by voad
I couldn't agree more. I know that in the US, billions of taxpayers dollars were given to big corporations on Wall Street. And instead of using the money they were given to save jobs or improve things, they handed out multi million dollar bonuses to their "top executives" who lost them millions in the first place. Why don't these execs take a pay cut to keep some of these places from completely going under? Something needs to drastically change.
Posted by Barca Azul
I wonder what games they will cut?
Posted by The_KFD_Case
I agree with your sentiments and outrage over some of the reports that have been coming out in regards to CEOs still receiving massive bonuses despite their companies stock tanking. It's unconcionable and should be illegal with severe punitive measures to follow.

However, regarding the surge in EA stock after announcing more layoffs is a bit tricky. It has to do with investors' assessment of EA's overall ability to be competetive. Since EA's stock has now risen it signals that various investors have faith in EA's ability to deliver dividends for the stockholders by cutting costs and maintaining existing profitable ventures. The trick being how do you maintain quality and productivity at the same levels with fewer hands on deck? It is possible to do it with fewer people depending on operating procedures, efficiency, etc. but it can certainly also go the other way where you end up with remaining personnel being stretched thin on the "front lines" as it were.
Posted by andyaubs
Yay, lets fire some people so we can make rich *****s richer...wooooo go EA. Wankers.
Read all 7 commentsPost a Comment
// Popular Now
News | Reviews | Previews | Features | Interviews | Cheats | Hardware | Forums | Competitions | Blogs
Top Games: Tomb Raider: Underworld | Metal Gear Solid 4 | Grand Theft Auto IV | Grand Theft Auto IV | Call of Duty 4: Modern Warfare | LittleBigPlanet
Burnout Paradise | Unreal Tournament III | Halo 3 | Xbox 360 Elite | Bioshock
Top Reviews: Chrono Trigger | Killzone 2 | New Play Control! Pikmin | Lord of the Rings: Conquest | Mirror's Edge | LoTR Online: Mines of Moria
The Last Remnant | Sonic Unleashed | Grand Theft Auto IV | Prince of Persia | Resistance 2
GamesRadar Network UK: GamesRadar | CVG | Edge | OXM | ONM
PSM3 | PSW | PC Gamer | XBW 360 | NGamer | PC Zone