Electronic Arts may lay off more staff in the coming months and stop some of its new franchises, due to the dissatisfaction with the sales for last three quarters according to analyst Colin Sebastian.(Via Gamesindustry)
Sebastian pointed that new titles Mirror's Edge, Rock Band 2 and Need For Speed Undercover will be possible underperformers, leading to estimated holiday quarter earnings 70 million UDS lower than previously projected.
They are also "lowering our [financial year] 2010 estimates, due in part to greater uncertainly over next year's product slate, including contributions from the Rock Band franchise and EA Casual label" and "believe further cost and franchise reductions are likely".
"Importantly, we believe EA is continuing to review its cost structure and franchise base, and it is possible that management will announce further cuts in headcount and the development pipeline (including existing franchises) over the coming quarters."
"While the videogame industry continues to show some resilience in the face of a very challenging consumer environment, strength does not appear to be across the board, and we believe that several EA titles are under performing expectations at retail."
Related Stories: PlayStation Home launch is imminent, EA Founder Questions Its Goals
EA Acquired Korean Online Game Developer J2M
EA: A Pig Of A Company?
Massive Layoffs Had Hit At Electronic Arts
