EA posts $381 million loss

Battlefield publisher in the red after recording $711 million in total revenue; EA Labels boss calls critical reception for Medal of Honor: Warfighter disappointing.

Battlefield and Mass Effect publisher Electronic Arts is seeing red. The company posted a $381 million loss for the three-month period ended September 30. This represents a 12 percent greater loss than the $340 million hit the company took during the same time last year. Total revenue for the period came in at $711 million, down slightly year-on-year from $715 million.

EA CEO John Riccitiello offered deeper color on the losses in a post-earnings conference call. He said the industry is currently in an unsettled period, and alluded to next-generation consoles from Microsoft and Sony helping to spur sales in the time ahead.

"The game sector is in a volatile period of change and transition--awaiting new catalysts for even more rapid growth," Riccitiello said. "Since the San Francisco Giants won the World Series, I’ll use a baseball analogy: EA doesn’t win every inning, but we put a lot of runs on the scoreboard and we expect to finish the season at the top of the standings and to continue to do so for years to come."

Later in the call, EA Labels boss Frank Gibeau shed some light on the recently released Medal of Honor: Warfighter. Gibeau said the critical reception for the game "fell below our expectations." He added that EA will continue to push the game during the holiday season through marketing and other sales execution strategies, including the upcoming map pack tied in to Sony Pictures' new movie Zero Dark Thirty.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

Want the latest news about Medal of Honor: Warfighter?

Medal of Honor: Warfighter

Medal of Honor: Warfighter

Discussion

0 comments
mrchuckmorris
mrchuckmorris

WAAAIIT wait wait wait wait.  Did I hear that correctly, you corporate ass clown?  The "industry" is currently in an unsettled period??No.EA is making the stupidest decisions of its hopefully-soon-to-end-existence.  And by the look of things, all their money-grubbing isn't really grubbing up much money.  Let's hope it stays that way, and all the creative minds and great developers they're holding hostage will be released back to us.And maybe we won't get any more Madden games as a bonus prize.  Who all wants to see the rebirth of NFL Blitz? :-D 

colt_a
colt_a

This is what happens when you make a complete failure of an MMO and fail to support it well, and have failure customer service (talking about Star Wars: The Old Republic for those that don't know).

 

That game has been the biggest expenditure since WoW and couldn't hold a million subs for more than 2 months.  Game is completely dead.

 

But yes, please continue to blame smaller titles that didn't have hundreds of millions poured into it like Medal of Honor.

Teemu_Milto
Teemu_Milto

Activision, EA, AMD, Microsoft, Nokia. These corporations have a neoliberal flavor of management and business. It was the most wicked set of global policy ever. They should fall because it is karma. =)

Groovy_G0D
Groovy_G0D

EA Ripped me off with BF3 Limited Edition.. I guess this is karma EA. Don't mess with other people's hard earned money!

blackothh
blackothh

i think i hear a really tiny violin playing in the distance

Uesugi-dono
Uesugi-dono

Every once in awhile I like to come back to this story...  just to read that delightful headline.

MrDouglas
MrDouglas

Meanwhile, Activision/Blizzard (love them or hate them) were able to turn a healthy profit margin in their latest earnings report. So quit blaming the "state of the industry" for your own shortcomings, EA.

jaspermur
jaspermur

from an investing site....Electronic Arts (NASDAQ:EA) Q2 beat offset by lowered FY guidance that reflects the disappointing Medal of Honor: Warfighter sales. Revenue was $1.08 billion, vs. our estimate of $1.09 billion, consensus of $1.07 billion,....

That BILLION people. Hate as much as you want.

TheEveryMan
TheEveryMan

Come everybody, put a smile on your face, I know the creator of Minecraft has.

garysingh34
garysingh34

Shouldnt spend so much on marketing and ramming shit products down gamers throats.

Sweendrix
Sweendrix

Here is a hint:  The critical reception for Dead Space 3 isn't going to be so great either if you make it more like the 2nd and less like the first.  The first Dead Space was GREAT.  The 2nd, well, the 2nd was ok.  I mean, it wasn't bad.  It wasn't really good either. 

WillyChong
WillyChong

I don't believe in my entire life that this Dreaded Draconian company is going to bankrupt anytime soon. They just post annual losses so that games would pity them and buy their games, I said FUCK EA, let them burn and made the CEO step down so that game developers would break off that cycle of repetition. Dragon Age Origin, C&C 3 & TFD and Battlefield 2 and 3 was the only game I owned, and the latter was because I love the hype series, but I'm sick of them telling us on a game website that they loss money and beg us for buying thier premium DLC, Medal of Honor Beard and Battlefield Clone instead of sitting down and ask, what's wrong with us?

 

Remember C&C4 and the new "General" rather than ratified themselves, they pushed product too quickly and made too much advertising that gamer already knew what to expect, all hype and no juice!

WillyChong
WillyChong

Can EA just stop this BullShitting? If they loss money is their own problem! Stop giving shit about EA made losses, what good games we are getting nowadays from EA, I admitted Most Wanted looks promising...... but fuck EA that is nothing but a pioneer in creating news of annual losses, so you pity them and buy their games, enough with that!

Knoar
Knoar

EA has nobody to blame but themselves.  They got overly greedy, and this is just the beginning of their punishment.

Thermador446
Thermador446

EA needs to quit blaming others for their problems.

Atombomb1981
Atombomb1981

EA's titles are just a bunch of over-milked franchises, infected with Origin DRM and spawning countless over-priced DLCs.

downloadthefile
downloadthefile

People who play video games casually ruin this business.  It's grown way too big.  That's why they make the same game over and over and so many people buy it.  Casual console gamers ruined consoles, and the console's influence ruined PC gaming.  There are still a few great games here and there but they've grown so few in number.  Everyone refuses to make smaller, niche games that can still make profits, but just not "enough."

 

It's PC gamers fault too, because so many of them steal games.  They say it's because of DRM, but Witcher 2 had ZERO DRM and was stolen 4 times to every 1 copy legitimately sold.  That's disgusting.

 

Dragon Age Origins game was the last large budget old school style RPG I think we'll ever see.  Bethesda's the only new RPG dev that is actually trying to evolve the genre as opposed to EA, which has tried to water it down.  Blizzard is making old school games, except their problem is that they release the IDENTICAL game except with modernized graphics.  Make something new already.

 

And when will these devs realize that if you want to be World of Warcraft, you can't make World of Warcraft again?  I wish everyone I spent time arguing with before the release of SWTOR had to pay me money for how wrong they were about what that game was gonna be.  OF COURSE it was gonna be a WoW clone.

 

I hate that I like playing good video games so much, because it means I have to wade through all the bad ones.

kyle756
kyle756

maybe if they concentrated on making better base games rather than concentrating on retailer specific preorders and day-one followed by extensive followup DLC, they might not have lost so much money. CHANGE YOUR WAYS.

Leeric420
Leeric420

Battlefield 3 is awesome why they thought they could milk another military shooter between battlefield titles is beyond me. If it was made with as much effort a battlefield game this would be a different story but this sounds awful like activisionish cod style bs to me. Start pumping out good games instead of crappy ones, to make the quick buck,problems solved.

tgwolf
tgwolf

The easy thing here would be to harp on EA. My second thought was to merely cite a horrible economy. None of those sound good so I will just generalize and say that you can't make money off of garbage games, and given the sensibility of gamers anymore, that is quite a sad and significant statement.

Trickymaster
Trickymaster

Maybe stop being the least popular company in the US, maybe that would help?

 

Maybe develop Burnout instead of Nfs? BF 2143 instead of Medal of Honor Beard Edition? Maybe make a new interesting IP?

sk8oridie44
sk8oridie44

Good. Loss is free-market way of saying your products are sh*t and not valued. 

marlon2312
marlon2312

Hooray! The only game from EA that i ever acquired

was C&C 3. I was really happy with it for about 1 day and a half and then i realized what happened. Well, that was it.

dadkwashere
dadkwashere

Although not even close enough to dent EA, its nice that more and more people are being careful with their money. Seriously, rehashed sports games, BF3 getting a premium edition when a person who bought the vanilla game for 60 bucks coughs up an extra 50, release of a game of the same genre (MOH:WF), and of course that dreadful online pass JUST to play online. I also just read about Sony losing money, no doubt from dwindling post release sales of the vita and such.

EmphaZima
EmphaZima

I'm torn on this.  While I'm no fan of these large evil empire publishers that are creating bad practices within the industry who else is going to finance innovation in next gen gaming?  Games these days cost exorbitant amounts of money and hundreds of thousands of man hours to create.  While I feel this loss is no death sentence for the industry, if large companies start going tits up your next gen gaming will be confined to smartphones and tablets to appeal to the casual gamer.  It also kills economic confidence for anyone willing to take risk.  Very slippery slope but something to think about before you truly cheer the death of EA.

blackace
blackace

That's what happens when you can NBA Live. lol!! Just kidding, as NBA Live would even be part of this quarter posting. Still, the fact that they cancelled NBA Live just before the season was about to start still isn't a good thing. EA is losing money because they are producing mostly average games and sales are just way down due to the economy.

Gazdakka
Gazdakka

Moral of the story: Don't release two shooters that you both own within proximity of one another when one of them clearly has substantially more than the other. Stick to Battlefield, EA. Quit f**king around with Medal of Honor when it doesn't have anything over its compatriot.

RaymanDK
RaymanDK

Warifghter blew me away, in a bad way. Just sad. I was so hyped for it. The SP and MP just sucked soooooo much. The only good things about the game was, that it used FB2 and the buddy system.

Eckkovoid
Eckkovoid

Im probably a minority, but I just finishd Warfighter and I actually liked it. To me, it was well worth it. Might actualy play the last one since Warfighter and the last one are connected.

 

But ya... EA needs to go. They clearly dont know how to do anything and they are destroying the idustry with their greed and their acquisitions. If you ask me, they deserve it.

musalala
musalala

The one good thing that EA does is bring gamers together in our collective hatred for them. Reading the comments below its amazing to see everyone in almost universal agreement 

kyacat
kyacat

HA HA HA what that knocking on your door EA its call karma you greedy fools and don't blame the industry the blame goes to you guys for be so greedy and selfish with online passes and releasing half azz games which it shouldn't happen to begin withand us gamers should have the full game instead of  half of game for 60 dollars most of us gamers don't want spend 60 dollars on half of  game then have pay the other half of the game online which in reality you're ripping us gamers off and need to stop trying buy game companies cause they make better games then you and need to stop rehash games and make some new IP

Carlos_D_F
Carlos_D_F

"... the critical reception for MOHW fell below our expectations."

It was crap, but we thought people wouldn't notice because it has explosions.

"EA will continue to push the game during the holiday season through marketing and other sales execution strategies."

Because marketing and stupid consumers who don't know any better solve all our problems! Yay!

dumas777
dumas777

 @jaspermur Spending 1.5 billion to make 1.1 billion is not that impressive.  Hell I could go to Vegas for a week and do that.  EA is good at making a small fortune from a large one.

gavdann
gavdann

 @Sweendrix What are you talking about? Both of the Dead Space games are great.

Evilbunz
Evilbunz

 @Atombomb1981 Dead Space / BF / Fifa / Madden / NFS / Mass Effect / Dragon Age / Sims / MOH / C&C

 

You might have a point....

kyle756
kyle756

strange how the company with the most premium partitioning of their products, that tries to milk every last cent out of every inch of a stretched out game, and they still can't make a profit. Just lol, lots and lots of lol.

Mudvaynekid
Mudvaynekid

 @EmphaZima i guess you don't know what Kickstarter is? You want a bad ass innovative game find it on Kickstarter and back it! Im sure it will be 1000x's better than any garbage EA puts out! Crysis 3 is my last call with EA if they make Crytek fuck this game up im finished with them. The Crysis3 alpha is playing well actually, alot better than Finished Crysis 2 haha

flammable_zeus
flammable_zeus

 @EmphaZima When did EA last innovate in gaming? They want the safest, easiest path to a profit. They're the ones that target casual gamers, people who only play one or two games at all (like CoD or Madden.)

Albaficas
Albaficas

 @Eckkovoid MoH:W was fine let the haters hate

i loved the car chase in dubai and the ending was powerful

drknessfeeds
drknessfeeds

 @Carlos_D_F

 I bought it because I thought it would atleast be on par with Battlefield 3, nope. traded it in the next day.

Atombomb1981
Atombomb1981

@Evilbunz

I agree with you that there are great titles in your example, but those belong to the past. EA reached a point where they started to focus way too much on getting a profit at the expense of quality, both in products and their attitude towards customers.

Yes Dead Space 1 & 2 are great, Dead Space 3 I'm not so sure the direction they take is good (Coop Play, more action oriented, less scary, tries to appeal to a larger group of playes by changing what made the franchise good in the 1st place). FIFA, Madden, MOH, Sims to me are just the same game with extra features, sometimes thin, sometimes a bit more consistent.. Mass Effect is a great franchise, however the 3rd was rushed to the market, ending up to annoy a lot of fans. The DLCs for the 2nd title still cost a fortune and there's no way to get them on disc or in a complete package at a decent price. NFS is a mixed bag, some titles just OK, some good, the last one that stands in my opinion is NFS Shift (and probably the latest Most Wanted). Dragon Age 1 was fantastic, Dragon Age 2 was rushed to the market (less content and repetitive, recycling a lot from the previous title and at the same time simplifying the formula to appeal to a larger group of players. Content was filled up later with some overpriced DLC. C&C stopped being a good title after Generals. The forced inclusion of the Origin service into the newer titles is making things even worse for the customer. Perhaps you remember the complete C&C Collection released on retail stores and containing the codes to "download" the games using Origin. The whole point of retail is to include the content on discs. And what do they do, they make this move informing us that retail is not the way and that we should go digital, because that's the future they have in store for us.

EmphaZima
EmphaZima

 @flammable_zeus You're right EA is responsible for a lot of the unfavorable aspects we see in gaming because of the almighty dollar.  Lack of recent innovation by anyone is the result of the cost of production of AAA titles and the current economic model in gaming where sequels and milking a series is reliable and cost effective.  However, given the production costs for unique games who else can float the bill and take risks?  I'm playing devil's advocate and giving another spin on this story.  Nobody likes when corporations take over things we love.

boss130
boss130

 @drknessfeeds  @Carlos_D_F I traded in the original MOH after the first day last time.  Never waste my money on that game again.  The sad thing is that I LOVED the old ones for PS

MrKronicSmoke
MrKronicSmoke

  @Carlos_D_F  damn it sucked that bad? BF3 is awesomev idc what anybody else says, but MoH, idk, i havent even gotten around 2 playing it

flammable_zeus
flammable_zeus

 @Albaficas Yeah, Mirror's Edge is great. Bought it on 360 a while ago and more recently for PC. It's a wonder that they had a game like that in their grasp and thought "let's not do anything more with this."

flammable_zeus
flammable_zeus

 @EmphaZima Plenty of indie and small devs are releasing amazing games. EA actually seems to spend as little as they can to charge as much as possible, which is why they have so much money. Look at games like Minecraft, Planetside 2, Journey and Magicka. These are games that have stood out for their innovation in a big way. Meanwhile, the last game EA had that included any innovation was Mirror's Edge (a game they decided wasn't any good.) I understand you're just looking at things objectively, which is always good. I just think that EA is genuinely low on redeeming qualities, including innovation.