Electronic Arts’ Conference Call Changes The Company

Electronic Arts’ quarterly conference call cuts staff and games in an attempt to save money.

Electronic Arts announced a huge transformation for the company, starting with the reduction of the workforce, as part of its conference call.  Over 1,500 people are being laid off in a “Cost Reduction Plan” that is designed to “provide greater focus on titles with higher margin opportunities.”  One of the hardest hit divisions is Mythic Entertainment, maker of Warhammer Online, which has reportedly “lost about 40% of the company” which was “responsible for 90% of the content.” The move has placed WAR into “‘maintenance mode.’”

“The majority of these actions will be completed by March 31, 2010. This plan will result in annual cost savings of at least $100 million and restructuring charges of $130 to $150 million.”

Electronic Arts has not gone in to specifics, but rumors say the layoffs have been felt at EA Tiburon, Black Box, and Redwood Shores, and the aforementioned Mythic Entertainment.  The cost-cutting measures come as a result of the relatively lackluster sales of original intellectual properties such as Mirror’s Edge (360/PS3) and Dead Space (360/PS3/Wii).

In none people related changes, Electronic Arts has revealed some good, and some bad happenings.  Starting with the absolute bad, the company has cut “over a dozen” games from its line-up.  The lose does not include the preeminent WWII franchise, Medal of Honor – before Call of Duty took the crown.  In fact, that’s part of the good news.  EA stated that MoH will see a “revitalization,” alongside other “core IPs.”  Details of the revitalization project are to come at a later date.

Detractors will see this as the company returning to the ways of old, churning out uninspired sequels.  However, there is a middle-ground that could be reached, the creation of sequels that actually innovate.