EA has said it is disappointed with holiday sales, and will make efforts to reduce costs next year.
Electronic Arts is being hit by the credit crunch too it seems, with company CEO John Riccitiello saying that he is disappointed with Christmas sales so far and that the mega-publisher will have to take efforts to reduce costs next year as a result.
EA, which laid off 6 percent of its global staff earlier of this year, has long had a reputation for producing games mainly in established, safe franchises. This year however the company has sought to bring more innovation to its line-up by
buying outside developers like BioWare and making more innovative games, like
Mirror's Edge.
These innovations haven't performed as well as the company expected however, with John Riccitiello saying that the company didn't manage to meet sales expectations for many titles.
"
While we saw significant improvement in the overall quality of our key products this year, we are disappointed that our holiday slate is not meeting our sales expectations," Riccitiello said in a statement, claiming the reduced sales were the result of an "
uncertain economic environment."
The company has said that it will now take measures to streamline the structure and profitability of the company, which is corporate-speak for firing people and cancelling games, we think.
According to
analysts the reduced sales are mainly due to the under-performance of certain key titles, namely
Mirror's Edge,
Rock Band 2 and
Need for Speed Undercover.
Did you try any of those games? Let us know what you think of them in
the forums.
Replace 'cost' with 'DRM' and then we'll talk. I think also, rather than rehashing old games, innovation is the way forward. Mirrors Edge, for better or worse, is a good step down that road but I'd be more inclined to buy games that aren't effectively Quake/Battlefield/Command and Conquer/SIMS clones.
With the proliferation of information on DRM and the increase in "non-techie" people becoming aware of its effects, I'm not surprised more and more people are avoiding legitimate purchases and opting for nntp/p2p versions.
I'd say to EA what we all say to the RIAA and MPAA - sort out your consumer business model first to reflect the change in media and user experience of the products and then you'll start seeing better profits. Slapping DRM and other draconian means of media management simply isn't working and is instead driving away your otherwise ligitmate consumer. <shrug>
When a company innovates, it needs to make sure that what it's innovating with is actually enjoyable. Going by word of mouth, they didn't always do that.
Maybe so, but surely that is simply the risk of trying to innovate? You can never be certain of the results when you try to do something new. By exploring new ideas you are inevitably exposing yourself to the possibility that some of them won't be as fun or successful as hoped. This could well lead to making a loss on some releases. The trick is to then build upon the ideas that proved popular - without the original investment in innovation, this would simply be impossible. Rather than cutting back, working with the new ideas that turned out best may be a better way forward...
From the sounds of it, EA is at risk of going back to what it was; a largely boring, non innovative company that simply re-hashes what is has already tried and is comfortable with.
What I mean is that they need to make sure the game that uses the actual gameplay innovations is actually fun, all around. You can have the greatest elements of game design in the world become worthless if the game is repetitious and incorporates other elements that clash with the fun parts.
It's also possible to make a game that isn't as deep or as challenging as one might expect. Spore is an example of making a brilliantly complex technology into an overly simple game.
also take out the DRMs, and then see if your sells go up. i, for one, will be buying RA3 and NFS if the above improvements were made.
EA would have received my money if not for its draconian DRM.
Mass Effect, Warhead, Dead Space, C&C RA3, ...
http://img523.imageshack.us/img523/1836/electronicassimilator1fq0.png
But Spore was absolute tripe, I wasted my money on that one.
I have personally banned EA games from my list, I will never pay for EA games again until they remove DRM!
I have also supported EA games in the past, set-up tournaments for their games, allot of effort from my side and they can't even support me properly with one of their titles.
I am sorry EA but you have lost a loyal fan with your policies!
I really dont get why there is no statement as to what EA plans to do about their low sales. In it's current form the message is just a whine: "mommy, nobody bought my limonaaaaaade!"
[edit]OK, so he plans to cut costs. Are you kidding me? Now would be the time to invest! Lots of great developers have been sacked lately and are ripe for the picking, and the PC gaming audience has never before cried out so loudly for what it wants. There are clear goals, there's real money to be made, and the available workforce has more then enough capacity. If EA invests now and does it wisely, they'll be for gaming what microsoft is for OS's within the next 5 years.
but noooooo, let's cut costs. I despise managers, they never look at what they are actually doing.
From a personal perspective, 2008 has been a better income year than 2007.
Two things are fundamentally different from other years. DRM and the creditcrunch. It's been a very good year for SecuROM, with EA as their main supporter. SecuROM also re-ignited the sh!tstorm that seemed to have settled down a bit at the beginning of the year. This may or may not be a big difference, but I am quite sure that SecuROM has given EA a net loss.
A bigger issue is ofcourse the creditcrunch and the way this company handles it. Companies as big as this should have some fat on their bones from the good years, so they can invest while things are down, and release games when the market is up and everyone has cash for them. Investing during a crisis will mean that you have products to sell when things are on the rise, sacking people now will mean you will be caught sleeping for the next big holiday season. Poor management is a MUCH bigger reason then DRM, but not listening to customers is a prime example of poor management in it's own right.
They just need to give up the NFL rights they bought up so other companies can makes Official NFL games.
exactly, gamers lose with this stupid exclusive rights.
I never said DRm was not an issue, but it is tiring everytime something like this comes up Anti-DRm people flood the forums like famatics. There is a lot more to it, largely the economy. DRM IMO many people are not even aware when they buy these games, fourms are a very small minority of the actual gaming population.
aye i nearly broke down and cried in the corner the day i heard EA had clobbered westwood and put them in their closet.
Back on topic...
I must say EA is getting their acts together somehow, besides the DRM thing that is. At least they are back on track with some games...
And is it Christmas yet? how can they complain about Christmas sales if it isn't Christmas for 2 weeks..
" we didn't make enough money through sales of games. let's make cheaper crappier games, that way they cost less to make."
why not....make better games?
(I will add, I would have bought Mass Effect for the PC if the DRM sh!tstorm hadn't occurred)
If they would worry about putting out a quality game that is tested before they release it (I am looking at you Madden and NCAA Football specifically) then they wouldn't have to worry about sales. Good games sell themselves.
Where was Battlefield 3 ? Nope... no sign of it. That one title says it all. EA took an amazing franchise, and after 2007... they did nothing with it. A cash cow sat there doing nothing.
Instead my money went to Activision, Valve, Gas Powered Games, Epic, Sony, Crytek
Whilst they may have innovated.... it doesnt mean they produced any good games. I even skipped Red Alert 3... just because the camera was too zoomed in (sigh.. as usual just like all the other botched C&C releases). And then there was Spore.. 2008's biggest let down.
PS - for me, I couldnt give a toss about DRM, although I do understand why others scream about it.
The fact of the matter is, not only is EA's DRM policy draconian at best, but their computer games aren't always guaranteed to work on a computer.
2 more missed sales from me too due to DRM. Why can't they just work on a cdkey check for multiplayer.
Seriously, bad/buggy/DRMed to hell games are not going to produce a lot of sales.
If you don't like it, don't buy, but don't copy it, play all the way through it (having a good time doing so, whether you admit it or not), and then say "it sucked so bad I'd never have bought this crap".
And no, I am not in any way affiliated to the computer gaming industry, neither directly nor indirectly. I've just got some standards (and I already had them when I was a teenager!), and most of all a functioning mind, and I will have neither of them be corrupted just because some people around me are. There we have your fault: You excuse your own shortcomings with those of others. Go do better then! That kind of ethics doesn't seem to be in you though.
I wish you software pirates that you will suffer from exactly what you are doing to others in your very own future.
Games that i really look forward to i buy, games i really enjoy after pirating it i buy (that's an EXTRA sale thanks to piracy, thank you very much!) and games i forget i forget. Basically it's the same as with any other business: market a game enough or make it good enough, and i'll buy it. I was planning to pay for GTA IV, but since they deliberately screwed it up to get people buying consoles i refuse to do it.
And you blame me for those 6k people getting sacked? Cry-me-a-river mr. ethics, but i am having a lot more internal moral struggle wearing clothes from China and living in a country with subsedised farming.
Another aspect of this is executive failure. While on a personal level software piracy is wrong, it is also very predictable and logical. Executives get paid top dollar to deal work out the best way for the company to deal with that. Then when they fail to come up with a realistic revenue model, they blame everybody else and sack 6,000 of their own people. People that they were very succesfully squeezing every last penny out of by the way. The worst part is that after all that, people like you defend these idiots. :(
If i forget to lock my bike and some1 steals it, i blame myself for not locking it, not the asshat that took my bike. There's always going to be asshats, you just have to find a proper way to deal with it, like locking your bike. Unfortunately, this is where the analogy ends, because you cannot "lock" software. So far, EA has done everything they could to encourage piracy.