Posts Tagged ‘Electronic Arts’


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The multi-facets of EA

The tech company following website Startup Grind confirmed with multiple sources that EA is planning on laying off 500 to 1,000 employees. They were originally slated to happen on April 9th, but were pushed back. EA has suffered this years with games like Battlefield 3 and Star Wars: The Old Republic, whose declining sales and subscriber base has perhaps led to this decision. Estimates put Battlefield 3 sales at 13 million units, but an estimated $30 million in advertising after the game launched caused them to suffer. Star Wars: The Old Republic is estimated to have a declining subscriber base after only selling 3 million units, of which only 1.7 million are still subscribed. Combined with the amount of marketing being done for that game, plus the less than warm reception to the new 1.2 patch, is perhaps causing EA to check their losses.

There are a few other factors to consider. EA CEO John Riccitiello just marked his 5th year back at the helm, but the stock price that has moved from $61 to $16 a share may point to the end of his reign, again. Add to that rival Zynga has been gutting the top EA management, and it seems like a recipe for EA to make a major change.

[Update] EA spoke to MCV¬†and denies laying off anyone. They offered the following comment “There are no lay-offs as such, we always have projects growing and morphing. At any given time there are new people coming in and others leaving. EA is growing and hiring and building teams to support the growing demand for digital games and services.”

What is your take on the story?