Electronic Arts posts third-quarter loss
February 4th, 2009 Leave a comment Visited 125 times, 5 so far today
Electronic Arts posts third-quarter loss
Videogame publisher Electronic Arts has posted a bigger third-quarter loss.
The company said that they suffered due to weak holiday sales in addition to some additional charges.
EA posted losses of $641 million in the quarter ending in December last year.
This is worse compared to losses of $33 million in the same period in 2007.
The company said that if they excluded the charges, they would have earned 56 cents per share.
The revenues for EA were however up 10 percent to $1.65 billion.
The company is going through a restructuring process which would see them firing around 1100 workers.
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February 4th, 2009 at 04:16 am
EA has a lousy business model:
Buy a good property, or one-off on their own, make a game people like to play (so far so good), but then:
1) break it into a multi-year cycle of “upgrades” (turning the early releases into down-grades)
2) load it with invasive, disruptive, and sometimes destructive DRM
Gamers have high-standards and we won’t buy what EA tells us we should want.
Who’s right – EA or their audience?