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The report says it all really. Rising development costs + rising rnd costs that outpace revenue from software sales equals losses.

Not only that, I think they've probably purchased too many studios and they've become a very unwieldy corporation.

If they can support the sims 3 properly and their games on the wii then that may be the ticket back to profitability. If the new mmorpg by bioware is a big hit (unlike starwars galaxies) that may also turn into a cash cow for them.