Published in Gaming
More cuts on the horizon for EA
by David Stellmack on10 December 2008
Headcount, titles, and facility consolidation
The holiday sales news from Electronic Arts has not been fun so far. The company is saying that they are not hitting their targets for the holidays, and as a result more cuts and belt tightening are going to be on the agenda.
The latest round of reductions will see EA slashing titles from the 2009 release schedule, as well as additional headcount reductions will be made in conjunction with facilities consolidation in order to trim costs.
The company has yet to identify specific titles to be eliminated from the 2009 line up or where the layoffs will come from. The facilities’ consolidation plans were not announced, either, but our sources suggest that it could come in the form of closing or the elimination or combining of some development studios.
Sources are suggesting that recent releases, including Mirror’s Edge and Need for Speed, were not selling anywhere close to what the company anticipated. EA had very high hopes for Mirror’s Edge, as it was the first non-FPS release from noted Battlefield developer DICE. Mirror’s Edge reviews have been mostly positive, but the title does not seem to be catching on with buyers.