Posted on February 1, 2008,

EA Posts Q3 Loss, “Short-Term Pain” is Necessary Says Riccitiello

ea.jpgFor 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.”

via GamesIndustry.biz

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5 Comments on EA Posts Q3 Loss, “Short-Term Pain” is Necessary Says Riccitiello

Joelteon7

On February 1, 2008 at 8:30 pm

Was Q3 around the time EA bought Bioware and that other company? Could explain why, if that’s the case. If not, ‘har har’ being in order?

ChaosBahamut

On February 2, 2008 at 1:45 am

Just as a change of CEOs ruined G4TV, I feel there’s a chance that a change of CEOs (from Probst to Riccitiello) will help EA. By help I mean in the way that benefits the gamer. Course I’m gonna take this analogy with a grain of salt. Irregardless, it sounds like he has his head on right. Now to see if he walks the walk.

used cisco

On February 2, 2008 at 2:33 am

Revenues are at an all time high. Profits are down. The reason? Costs are too high? The answer? Decrease costs while increasing market share. Translation? We’ll be seeing some serious high quality Wii development from EA in the next year.

Norbit

On February 2, 2008 at 7:43 am

According to EA’s report for 2008 the PS3 will outsell the 360 in the EU & US by between 1.5m and 5.5m

http://media.corporate-ir.net/media_files/IROL/88/88189/Q3FY08SupSeg.pdf

used cisco

On February 2, 2008 at 9:06 am

I think EA is right. I mean the 360 sales are slowing year on year aren’t they?
The PS3 is selling poorly, but it will likely still beat the struggling sales of the 360, especially if Sony can get another price break by next christmas. Word is they’ve done well with their manufacturing costs recently. Hopefully EA will see some sales gains on both platforms. By then we should have a James Bond game to help them out as well.