NJ5 pretty much nailed it. I'd only add that trying to make too many blockbusters at one time can only be harmful, as there are only so many dollars to go around. Last holiday was a good example, as they released TWO incredibly pricey, "I need two million+ sold to break even" games in the exact same time period (Mirror's Edge and Dead Space. They also helped with a third blockbuster, Left 4 Dead PS3, but I don't think they shouldered much of that burden save for porting duties, correct me if I'm wrong).

They'd be better served by focusing on a handful of blockbusters (three or four tops) each year, and then using the rest of their resources to make small and modest-sized titles across all platforms. Note that I'm not counting the Sports games under either category, as those are fairly steady sellers that probably don't demand too many resources during a generation, plus you need to make a new one for each sport each year.

Of course, seeing as how EA has absorbed blockbuster stuido after blockbuster studio, changing course like this is impractical, if not impossible, without first shedding a ton of studios and talent. And thus ends my likely-wrong armchair analysis.

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.

hhmmmmmmmmmmmmm, i have 400+ G's on T woods 06........ will i get any more, no, the servers are closed.

I have 960 G's on NBA live 06, will i get 1000? No, the damn servers are closed.........

EA take the piss out of us............

Bottom line_________________________

What about the $800 million purchase of Bioware and Pandemic. I think that might be included.

They keep milking their franchises, and people are getting pissed off about it.

Warhammer online and the last 3 N4S tanked.

Dead Space and Mirror's Edge didn't meet expectations.

Spore didn't do to will either.

This along with building new engines for the New gen took a lot of resources but they should be less now Bad Company 2 and probably Dead Space 2 will use the same engines as their originals.

Warhammer Online didn't tank, it's doing well, and will make tons of money. Spore sold 2 millions in the first 3 weeks, and it should atleast do 5-to-over 10 millions

nah not really

http://www.gamespot.com/pc/rpg/warhammeronline/news.html?sid=6204136&mode=news

http://www.gamespot.com/news/blogs/sidebar/909182374/26808499/warhammer-online-sheds-63-servers.html

and spore didn't set the world on fire like EA wanted it to a la The Sims.

Gotta love shios claims and somebody using facts to prove him wrong.

But what the hell is EA developing? The RnD-stuff is WAY too high.

And I forgot to mention the "Need for Speed" series, which makes a lot of money as well.
Every single "Need for Speed" sold more than 1.3 million on the Xbox360 alone! Another profitable product.

They closed 43 servers already? Jesus. Apparently WHO was a huge money sink after all. Hopefully that helps them get their costs down, but it doesn't seem to be happening quick enough. This will hopefully teach Mythic a few valuable lessons they should have learned after DAoC.