EA prepares layoffs after $310 million loss

By Justin Mann on October 30, 2008, 5:35 PM
Game industry behemoth EA hasn't done well the past quarter, and as a result of some significant financial losses has announced that they will be cutting a portion of their workforce. Citing higher development and marketing costs, the company announced that the $310 million loss they suffered will result in them cutting 6% of their workforce, which is somewhere around 500 to 600 people.

Interestingly, one of the bigger successes for the quarter they mentioned was Spore, despite it being one of the most pirated games ever. They did see an increase in sales of 40%, a significant amount. That increase wasn't enough to overcome operating costs, though.

User Comments: 3

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windmill007 said:
Guess they shouldn't of spent that $400 Million on DRM
impcfast said:
Wonder if they would have made $310 million extra by releasing Madden 09' on the PC? Probably not. But I truly believe they screwed themselves by punishing PC gamers with limited installs on the games they did release and alleging that everyone who uses a PC is a pirate. And with their recent behavior of banning people from their games for their posts in EA's forums, I can't imagine their company doing better next quarter. And the fact that they came in $310 million less than last quarter doesn't mean the company had a loss. It simply means their profits weren't as high. Also, does the sales of Warhammer Online reflect in this past quarter? That game is doing great and generating some fine profits for sure.
Badfinger said:
I am mad now at EA, I bought Brain Training for Dummies at Gamestop, it has serial number check, AND they force you to use the CD. Typical work arounds do not work.Is this DRM on a $20 program? No wonder they are losing.... that will make all 'dummies' angry I think. ;)They spent $400 million on protection? That's really reallly bad![Edited by Badfinger on 2008-11-02 15:03:57]
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