EA to axe over 500 jobs

Electronic Arts is set to axe between 500 and 600 jobs after announcing a $310 million loss in the financial quarter ending September 30th.

Shares in the company have dropped nearly 20% as a result of the announcement.

Recent reports have suggested that the gaming industry is stronger than ever, despite the current economic turmoil, with some analysts going so far as to suggest that the games industry is "recession proof."

Speaking to Kotaku, EA spokesperson Mariam Sughayer said that as well as eliminating around 6% of their workforce, EA would also reduce hiring and close some open positions that they had planned for this fiscal year.

According to the Associated Press, EA believes higher development and marketing costs are to blame, as well as delays to the latest Harry Potter game. They also said that the job cuts will span across "all functions and locations."

Chief Executive of EA games, John Riccitiello, remained confident for the future: "Considering the slowdown at retail we've seen in October, we are cautious in the short term. Longer term, we are very bullish on the game sector overall and on EA in particular."

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The quality of EA games has been improving recently but their use of draconian DRM activations and refusal to distribute over Steam mean I refuse to buy any of their games. I used the EA Downloader to the Spore Creature Creator and found it terrible, as well as very restrictive.

theyarecomingforyou said,
The quality of EA games has been improving recently but their use of draconian DRM activations and refusal to distribute over Steam mean I refuse to buy any of their games. I used the EA Downloader to the Spore Creature Creator and found it terrible, as well as very restrictive.

If a game comes out on steam it doesn't mean the game will not have the same DRM in it, Crysis/warhead and farcry 2 are perfect examples.
The steam versions are the same as the versions you would buy in the store, full of intrusive DRM that punishes the legitimate user way more than it punishes the pirate.

Kind of hard to blame piracy when a game like Fallout 3 sells 4.7 million copies and makes $300m without using any serious copy protection (only the launcher had copy protection).

What kills PC sales is not piracy, it's:

1. Ridiculous development budgets and inept staff.
2. Unrealistic hardware requirements.
3. Bug-ridden, unfinished games resulting from publisher greed.
4. Consolitis - selling console games as PC games.
5. Fascist DRM that treats users like convicts in maximum security prison.

In closing, I'd like to say **** you, EA!

I have no pity for them as a company for their weird piracy talks, anti-piracy measures and their anti-customer approach.
However it's not nice to see people loosing jobs.

Axing tons of people from everywhere seems to be a trend for the past year.

With so many job lost, no wonder why the economy is going downhill...

Spore? That single game must have backfired big time for EA....

Not only because of the DRM, but the fact that it was over-hyped and well, it's crap.

TruckWEB said,
Spore? That single game must have backfired big time for EA....

Not only because of the DRM, but the fact that it was over-hyped and well, it's crap.


Red Alert 3 is similar by all accounts.

Well even with the DRM, Spore is still selling. In fact the Maxis franchise is the only EA franchise constantly in the green and I would bet a million dollars, it's the single reason that EA is still in business.

Raa said,
Source?

I actually thought it was pretty good!


Source = Me
Seriously, why do I need a source to post an opinion? Perhaps I should make a disclaimer on every post I make saying that it is my opinion.

I know it's hard to judge the final game by playing a beta, but I found the graphics very cartoony and I just thought the whole thing had over-hyped expectations. On the other hand, I LOVED Red Alert 2.

Rudy said,
but the people losing their jobs dont

If any of those 500 people are related to Spore, Red Alert 3 or DRM, yes, they did deserve it.

Rudy said,
most of these people don't have any power to make decisions, they just do what they are told to do.

Ahh, the old "but I was only following orders" excuse.

Any number of them could have made a stand against something they thought was wrong.

The beauty of recessions is that the ill-productive who plagued our society (the cause of such recessions) will fall and the strong will rise to become the new leaders of a new economy.

Shame, EA have bought some great titles to our screens in past years.
But then the last about Red Alert 3 really hit it with a lot of people and now EA seem intent on releasing lots and lots of titles, with less and less quality. A good example is The Sims 2 addons. . . Morons!

yeah! go on EA.....keep making crappy games over and over and over again. And keep screwing with the PC fans of your fifa series who dwindle every game.

I'll never understand the hatred of EA for thier DRM. As most I disagree with how they use it and think it is a poor decision, so i just do not buy alot of thier games. But the hatred? I don't buy Mac's for many reasons, but i do not hate the company, I think it fosters competition.

NateB said,
I'll never understand the hatred of EA for thier DRM. As most I disagree with how they use it and think it is a poor decision, so i just do not buy alot of thier games. But the hatred? I don't buy Mac's for many reasons, but i do not hate the company, I think it fosters competition.

I think alot of the hatred comes from the fact that ALOT of these people REALLY REALLY want to play some of these games like Crysis Warhead and Red Alert 3, but are prevented from doing so because they refuse to allow EA to install what amounts to malware on their system.

TCLN Ryster said,
I think alot of the hatred comes from the fact that ALOT of these people REALLY REALLY want to play some of these games like Crysis Warhead and Red Alert 3, but are prevented from doing so because they refuse to allow EA to install what amounts to malware on their system.


I get your point, but. I really really want an ipod, but hate itunes all to hell. Still dont mind Apple, just bought a zune.

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