Electronic Arts is going to hand out 500 pinkslips following lower than expected profits this year. The outfit lost around 20 percent of its market capitalization after announcing a profit warning.

EA claims the decision was brought about due to higher than expected development and marketing costs, as well as a delay of its Harry Potter game. John Riccitiello, EA's chief executive, claims the company is cautious in the short term due to the economic slowdown.

In the long term, the company is optimistic about the game sector and EA in particular. The 500 souls out of work, or 6 percent of EA's workforce, probably don't share his views.

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