EA Posts Q3 Loss, “Short-Term Pain” is Necessary Says Riccitiello
By Chris on Friday, February 1st, 2008 at 8:02 PM PSTIn Command & Conquer, Computer, Electronic Arts, Game Companies, Game Consoles, Game Platforms, Games, Games Industry, Madden, Mass Effect, Microsoft, Nintendo, Nintendo, Portable, Sony, Sony
For 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 no 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.”

At the end of last week, we got a look at the not-so-pretty
Before you skip right to the numbers, keep in mind that NPD numbers don’t encompass digital downloads which explains why games like The Orange Box are conspicuously absent from the year’s top 10 chart.
“The commander saw victory in his grasp, the greenskins had been pushed back and he knew the tactical elements of the Imperium would, Emperor willing, capture and rally with the help of the newly arrived Blood Angels. Five units. Five simple units of Cadian Imperial Guard had held against the green horde, the rampaging onslaught of Gretchin and Orks with their bloodlust flowing. Not even a regiment of defenders stood between them and the settlement of Cleric’s Hollow. The Cadian’s had held before the brunt of the overwhelming numbers. Today this bastion of the empire would not succumb. Today, the greenskins had been taught that even trying to take an insignificant clerical outpost would cost them dearly.”
It’s been over five years since the last first-person shooter set in the Command and Conquer universe, “Renegade,” came out. Now it looks like the famed RTS is heading back into the FPS realm with the upcoming “Tiberium.” You’ll play the leader of a group called “R.A.I.D” (Rapid Assault and Intercept Deployment) against a new enemy, the Scrin. The only two Scrin units announced so far are standard infantry types called “Archons” and little robots with guns called “Shrikes.” The game is said to be “Ghost Recon Advanced Warfighter meets Battlefield meets Rainbow Six Vegas,” which I think basically means it’s a squad based shooter with vehicles. The game should be coming out for the PC, PS3, and Xbox 360. We should find out more when the January issue of Game Informer hits news stands with the full details.
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