Did y'all see this in the News about EA Games?

Did y'all see this in the News about EA Games?

This is sad that these folks are loosing their jobs. . . but I wonder why they are loosing so much money. Hummm, one wonders if all the BV and Securom issues hurt their sales?



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EA to close Chicago office

By RACHEL KONRAD, AP Technology Writer1 hour, 40 minutes ago


Electronic Arts Inc. announced Tuesday it would close its 150-employee office in downtown Chicago as part of a company-wide cost-cutting initiative.
Redwood City-based EA, the world's largest independent video game publisher, said last week it would trim its global work force about 4 percent, laying off about 350 employees. The company plans to consolidate two development studios in England.
EA Games President Frank Gibeau wrote in a memo to employees Tuesday that executives had wanted to announce the Chicago closure last week but postponed it when a staff member there died.
"We're willing to take risks, make long-term investments, and to support teams and individuals between launches. But each team is responsible for staying on a reasonable path to profitability," wrote Gibeau, who presides over one of the company's four main divisions. "Unfortunately, EA Chicago hasn't been able to meet that standard."
EA spokesman Jeff Brown, who was in Chicago on Tuesday, said EA would offer relocation opportunities and severance packages to many employees. He said the company was not planning closures other than in Chicago and England.
EA's Chicago workers developed Fight Night and Def Jam games. Investors have criticized EA for not investing enough in games for the Nintendo Wii, which debuted late last year and has become a runaway hit.
In the last quarter, EA lost $195 million, or 62 cents per share, compared with a profit of $22 million, or 7 cents per share, in the same period a year ago. Revenue in the fiscal second quarter plunged 18 percent to $640 million.

 

EA makes more money off the Sims franchise than you or I could ever imagine Their financial troubles have nothing to do with the Sims.

EA is too big, they lose money, so they buy successful small company and drain it for all its worth to maintain profitability... after a bit, they start losing money again, and they are bigger than before.... so they buy another small successful franchise and drive it into the ground... then they get bigger... then they buy more... bigger... bigger... then they fire a ton of people. Now they smaller!

 

If EA did go out of buisnuis some other big compony would by all the games they make. But they make some of the best games so no wories they'll go broke.

 

I can't even believe that they are loosing that much money. That is crazy. I hope those other people find jobs soon because it sucks to be out of money.

 

It's just the same old story: The Management makes the wrong decisions (not actually cater to the market but trying to superimpose their ideas onto the gamers)
And whenever that strategy fails, it's the "little man" and not the "white collar gangsters" that pays the bill (i.e. looses their jobs).
Welcome to the world of free enterprises.

-le

 

If you ask me.....

It has to be the lousy customer service. I didn't have to jump through this many hoops when I was performing in the circus.:bunny: Whenever I ask a legitimate question, it takes over a week for a response and half of the time the EA rep is usually incorrect in their answer. The few times they have "done right by me" have been few and far between.