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EA Denies Layoff Rumor

[Apr 16, 2012, 09:17 am ET] - Share - Viewing Comments

An unconfirmed rumor on Startup Grind states between 500 and 1000 layoffs will hit Electronic Arts as soon as this week. They have a list of factors leading to this, including general business downturns, and specific recent aspects of this like disappointing sales of Battlefield 3 and Star Wars: The Old Republic, and the expensive incremental marketing campaigns attempting to boost both games after launch. There's a follow-up to this on Develop denying this. "There are no lay-offs as such, we always have projects growing and morphing," reads a statement they received from EA, which also adds: "at any given time there are new people coming in and others leaving," but that the company "is growing and hiring, building teams to support the growing demand for digital games and services."

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Re: EA Denies Layoff Rumor

Apr 16, 2012, 11:33

SXO

Wildone wrote on Apr 16, 2012, 11:11: Dissapointing BF3 sales?!? Are u effin kiddin me????! These days sales are graded on a curve. If a game doesn't sell as well as CoD/Modern Warfare, then it's considered dissapointing. I still remember when a game selling even 500k units was considered amazing and highly profitable. But then again, consider that a company like EA spends $100 million just to market a game, when they don't even understand gamers. So they would've had to sell at least 1.7 million units at $60 each just to pay off the cost of marketing, let alone the development costs. Combine that with the fact that EA is a massive gluttonous monster with an insatiable appettite, so the profits they expect from a game has to not only cover development and marketing costs, but it has to go far beyond to keep the beast well fed. A smarter company that understood that not every gamer is built the same would've had a much smaller budget for BF3 (no SP campaign, iterative of BF2/2142 but on the more advanced Frostbite 2.0 engine), would've made it PC exlusive, and would've targeted only those particular fans in the marketing campaign. They then would've had a sequel to Bad Company 3 that's designed specifically for the "Modern Warfare" crowd, with a modest budget that allows for a SP campaign, and smaller MP maps, and less intensive graphics (comparable to Bad Company 2).

Subject

Comment [quote="SXO"Apr 16, 2012, 11:33][quote="Wildone"Apr 16, 2012, 11:11]Dissapointing BF3 sales?!? Are u effin kiddin me????! [/quote] These days sales are graded on a curve. If a game doesn't sell as well as CoD/Modern Warfare, then it's considered dissapointing. I still remember when a game selling even 500k units was considered amazing and highly profitable. But then again, consider that a company like EA spends $100 million just to b[market]b a game, when they don't even understand gamers. So they would've had to sell at least 1.7 million units at $60 each just to pay off the cost of marketing, let alone the development costs. Combine that with the fact that EA is a massive gluttonous monster with an insatiable appettite, so the profits they expect from a game has to not only cover development and marketing costs, but it has to go far beyond to keep the beast well fed. A smarter company that understood that not every gamer is built the same would've had a much smaller budget for BF3 (no SP campaign, iterative of BF2/2142 but on the more advanced Frostbite 2.0 engine), would've made it PC exlusive, and would've targeted only those particular fans in the marketing campaign. They then would've had a sequel to Bad Company 3 that's designed specifically for the "Modern Warfare" crowd, with a modest budget that allows for a SP campaign, and smaller MP maps, and less intensive graphics (comparable to Bad Company 2). [/quote]

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