EA to cut '09 line-up due to worse than expected 2008 sales

And more job cuts in the pipeline too

9 December 2008 19:42 GMT / By Verity Burns

Electronic Arts has said today that it is predicting its earnings for the year to be below original expectations, and that it will need to reduce the number of games in its 2009 game line-up to compensate.

It also added that this would mean further "headcount reductions", which we're assuming is a nice way to say further job cuts.

In October, EA announced it would be cutting around 600 positions, but it appears that wasn't quite enough to help in the "uncertain economic environment".

"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 EA CEO John Riccitiello.

He added that EA would be "taking steps to reduce our cost structure and improve the profitability of our business".

Analysts have predicted that EA's estimated holiday quarter earnings will be $70 million less than expected.

Riccitiello has said that titles will be cut from the "bottom levels of profitability", clarifying that reductions would probably not affect its sports titles but would be "divided evenly between core and casual" software.

We'll keep you posted on any titles announced as cut.

Full tags

Gaming, PS3, Xbox 360, Nintendo Wii, Games industry, Sony, Microsoft, Nintendo, Activision, PS2