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Monday, November 3, 2008

Game Industry Not Sheltered From Economic Downturn Afterall

Game giant Electronic Arts Inc. (EA) is laying off about 6 per cent of its work force to cut costs after posting a wider than expected quarterly net loss on Thursday. “Considering the slowdown at retail we've seen in October, we are cautious in the short term,” said John Riccitiello, chief executive, in a statement. “Longer term, we are very bullish on the game sector overall and on EA in particular.” The company said it expects about $50 million in annual pretax cost savings as a result of the layoffs, which will amount to about 500 - 600 positions across all functional areas. Wow, if you use the 600 number that puts the average salary + benefits for these positions at $83,333! Globe and Mail story.