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Forums - Sales Discussion - EA cutting more jobs, issues warnings of lower sales and profit

Khuutra said:

celine said:

[...]

I wish that I could report posts for being awesome

Post is awesome however I didn't write it ( in case you don't know google "birdman disruption" )

 



 “In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.”  Hiroshi Yamauchi

TAG:  Like a Yamauchi pimp slap delivered by Il Maelstrom; serving it up with style.

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Lolcislaw said:
Another company suffers because of the Costs of development in HD gaming, i mena they've put loads of money and effort in Mirror's Edge, doubt they will get their money back.

 

 Did they actually say how much they spent on it, there is just not that much game there.



Proud member of the Sonic Support Squad

I am not saying that this game had some ridicilous costs, but what happenes on HD platforms. is that the big games like COD:WAW, GeOW 2 sell amazingly well and producers are able to make a profit with sales of smaller games suffering, and if the game like Mirrors Edge has average reviews, not that much hype it sells average at best it means big losses for the developers. Lookin at financial reports of nearly every company it's evident that Games are more riskier to make now.



Lots of people will buy Mirror's Edge used from stores like GameStop and Game Crazy, because it is actually a pretty decent single-player (i.e. play once, then sell it) game. EA will clearly rake in the dough on this game over time.... err wait.

So, will GameStop have layoffs, you think?  Maybe they could hire some ex-EA folks to sell all those used copies of Mirror's Edge.  In all the economic turmoil, the middleman will come out on top, and the creative folks will get fired.  Good times ahead.



I can't believe they blame the Wii when weird games like Nerf-And-Strike are doing surprisingly well.

The problem with EA is that they invested too much on new unknown IP for Xbox 360 and PS3 instead of the Wii. The competition on the Wii was nearly non-existant while it was really strong on the HD consoles.



How many cups of darkness have I drank over the years? Even I don't know...

 

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Godot said:
I can't believe they blame the Wii when weird games like Nerf-And-Strike are doing surprisingly well.

The problem with EA is that they invested too much on new unknown IP for Xbox 360 and PS3 instead of the Wii. The competition on the Wii was nearly non-existant while it was really strong on the HD consoles.

I think the trouble is that, they need to hire some toy companies (that have been catering to the general populace for eons) to come up with game ideas.  They have too many "gamer" game designers.  Down with gamers!  Hehe.

Sad but true.

 



I think they have the right idea with the Wii, just horrible marketing. The all-play Madden and other games would sell a lot better if they just advertised it as a family game. If parents knew that it actually might be fun to play WITH their kids, they might buy the game. But I haven't seen any such advertising.



TheSource said:

I don't know what EA expected internally, but Spore probably underperformed because it was "the most pirated game ever" and it looks like Mirror's Edge underperformed.

I really think they missed the boat not releasing Rockband 2 on Wii and PS2 this holiday. That could have covered alot of other mishaps because the game costs more and would be selling to bigger bases.


Actually I would wager spore underperformed because it was a crappy game that I played for 2 hrs and haven't touched since...

My how the mighty have fallen. It's sad (in a way) to see the monolithic third-party giant of the past decade struggling so much. But this has been a long time coming. Remember back in 2007, when a couple of us predicted that EA was going to report a net loss for the first time in ten years? I pointed out as far back as July of last year that EA was in trouble, because their R&D costs were skyrocketing while their income was stagnant:

http://www.vgchartz.com/forum/thread.php?id=4029

I assumed at the time that EA would move towards the Wii, to try and solve the problem. Well... EA talked a lot about increasing Wii support, but has done relatively little in that regard. Bodhesatva has an excellent post on the first page explaining that in more detail. When I saw that EA was devoting less than 5% of their efforts to DS games, that was pretty much the nail in the coffin.

You can't ignore the two best-selling platforms and expect to be profitable, not with such massive labor costs. (EA's got like 15 different development teams.) Not releasing Rockband 2 for Wii and PS2 until 2009 is among the dumbest publisher decisions in recent memory.



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End of 2008 totals: Wii 42m, 360 24m, PS3 18.5m (made Jan. 4, 2008)

DKII said:

That 2/3 number is not only a cop-out, it's flatly untrue.



It's a bit out of date but 2/3 is way off. They're just making excuses.

 

 Nintendo probably counts Super Smash BB as third party, since game arts made it.



Yet, today, America's leaders are reenacting every folly that brought these great powers [Russia, Germany, and Japan] to ruin -- from arrogance and hubris, to assertions of global hegemony, to imperial overstretch, to trumpeting new 'crusades,' to handing out war guarantees to regions and countries where Americans have never fought before. We are piling up the kind of commitments that produced the greatest disasters of the twentieth century.
 — Pat Buchanan – A Republic, Not an Empire