EA Posts Q3 Loss, “Short-Term Pain” is Necessary Says Riccitiello
For its third fiscal quarter, which ended on December 31, EA posted a net loss of $33 million, compared with a net income of $160 million during the same period the previous year. Despite this, the company saw a 17% increase in revenue compared with the previous year, from $1.28 billion to $1.5 billion.
“This was a record revenue quarter for EA and the single biggest revenue quarter for any third party publisher in our industry,” said CEO John Riccitiello.
Riccitiello went on to say that “short-term pain” is necessary for the company to enhance the quality of internally developed titles. He also said that he’s willing to delay titles to ensure higher quality.
“While we are the third-party quality leader we are not satisfied with where we are,” said Riccitiello. “We did not have any internally developed breakaway titles and not one of EA’s internally developed titles reached a Metacritc rating of 90 or greater.
“This hit us particularly hard in North America where EA faced tough competition on a number of fronts. In North America, excluding EA Partners, our business was essentially flat in a very robust market.”
“As anticipated, our calendar year shares were down. Although we hit our numbers and anticipated our share losses, losing share is just not acceptable. Rebuilding share is a top priority.”
And almost as if he was trying to give me a quote to back up my claim that he is the guy gamers would want in charge of a company like EA, he said, “When I came back to EA I made a commitment to investing in quality, both because I think it’s the right decision for the long-term financial health of the company and because it is what our consumers have a right to expect.”