EA to cut jobs and titles in 2009
Riccitiello reacts to disappointing sales of titles in Europe and North America
Electronic Arts has said that it will cut the number of titles in its portfolio and lay off staff following slower than expected sales in Europe and North America.
The confirmation comes after analyst Colin Sebastian predicted such a move earlier in the week, singling out Need for Speed: Undercover, Mirror's Edge and Rock Band 2 as slow performers.
"While we saw significant improvement in the overall quality of our key products this year, we are disappointed that our holiday slate is not meeting our sales expectations," said John Riccitiello, CEO.
"Given this performance and the uncertain economic environment, we are taking steps to reduce our cost structure and improve the profitability of our business."
The company said that it will reduce its product portfolio for the 2010 fiscal year, along with the associated headcount.
Riccitiello added, "While we are cutting costs, we remain committed to investing in great game quality, in new properties and in our direct-to-consumer initiatives. We will be launching several new titles and online games in fiscal 2010."