EA Games loses money?

icon1 Posted by Luke in strategy on 02 9th, 2010 | 2 responses

I recently got this from my ‘online fiction’ Google alert.  The first thing that sprang to mind is that EA is losing money and I was seriously questioning myself and the world I live in.  These people are the staples on the gaming industry.  Then I paused, collected my thoughts and wrote this sentence.

EA games are losing money.

Think about it.  That is a big statement.  So what are they doing to fix it:

1. Downsizing

2. Bringing out fewer games (my favourite Cricket game was one of these that suffered at the hands of this ‘downturn’.

Two things I would have thought are drastic measures for such a big player.  Why do companies downsize in a downturn?  Instead of thinking up new ideas and using the talent you have to innovate to recover lost profits, you decide to get rid of people?  Do you know what kind of message that sends to other employees?  Bringing out less titles.  Why not bring out more on a smaller scale?  As the article says:

Instead of spending $60 on a shiny new disc, many people are playing free or cheap games online, on their mobile devices and on Facebook. They are spending a few dollars here and there to buy virtual add-ons for the games, or they are signing up for subscription-based online games.

Find new models EA!  Don’t just sit around waiting for people to decide to buy disks again.  Make new models!  You are the industry leader in games and personally speaking gave me great pleasure with your titles.  What are some ways you could release a niche game cheaply and support it with trendy new ideas around new business models?

If EA games goes under then the world will end as I know it.  Well not the world… just the fun part of it.

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2 Responses to “EA Games loses money?”

  1. sameer sameer says:
    February 10, 2010 at 12:50 am

    Its hard to believe that EA is losing money. In the last couple of years, they’ve surpassed the masters in creating and developing v-games in Japan (Konami, Capcom, and Namco).

    I’m working now with the airlines, and the first thing that I’ve learned in my training is to find a way to reduce cost and improve services(quality). Decision makers want to see actual numbers to generate more profits. They find it hard to wait for employees to create ideas, wait for the implementation and the results of these ideas :)