Electronic Arts sees loss as it delays 3 games
NEW YORK (Reuters) – Video game publisher Electronic Arts Inc posted weaker-than-expected results and said it would delay the release of several games, causing it to forecast a loss for the current fiscal year.
But EA shares rose 6.7 percent in what analysts called a relief rally as the company's outlook for fiscal 2010 was not as bad as some had feared. Shares of EA, which goes head-to-head with Activision Blizzard Inc for the title of biggest publisher, had hit a year-low on Monday.
EA said it would delay the release of "Sims 3," "Godfather 2" and "Dragon Age" to fiscal 2010 from fiscal 2009, and that it would narrow its product portfolio and cut other variable costs.
MORE JOB CUTS
The company, based in Redwood City, California, also said it would cut 1,100 jobs, or about 11 percent of its workforce, higher than the 1,000 it announced in December. It also plans to close 12 facilities as it narrows its product portfolio.
Not Wii titles, but a major publisher feeling the effects of a poor economy. Although things are looking good for Nintendo, all other companies are really getting hit hard.