EA shares fall after Wilson named CEO

Electronic Arts stock value dips more than 3 percent after company appoints Andrew Wilson as new chief executive officer.

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Shares of Electronic Arts fell more than 3 percent today, a day after the Battlefield and Mass Effect publisher announced that EA Sports veteran Andrew Wilson would take over as new CEO.

At press time, EA is trading down 3.4 percent to $26.63.

Wilson replaces John Riccitiello, who resigned from his post as EA CEO in March. Wilson will be paid an annual base salary of $800,000 in his new position.

In an interview with the Wall Street Journal, Wilson laid out his plans for the future of EA.

"When I think about our vision for the future, we have a very strong strategy around the ongoing development of the most amazing teams in the world," Wilson said.

"We have a tremendous pipeline of intellectual property, both current intellectual property and new intellectual property, and we have been making investments against our digital platform that in my vision for the company moving forward will really start to pay dividends," he added.

Wilson also spoke about his ambition for EA to "fail fast" going forward, meaning listening to consumer feedback and responding appropriately and quickly.

"The big thing about a modern digitally driven company that is operating at the edge of innovation to deliver unbelievably immersive experiences for our gamers is that you have to figure out what works and what doesn't very quickly, to ensure the consumers get the best of everything you make," Wilson said.

"And it is a culture and philosophy that will underpin how we go to market in the future to make sure we’re delivering experiences that live up to consumer expectations."

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Discussion

111 comments
finalkain
finalkain

I can see why shares dropped... He said nothing of substance..

OldKye
OldKye

"We have a tremendous pipeline"

I want a bumper sticker with a big EA symbol that say's that and underneath it says.

"Challenge Everything"

Hurvl
Hurvl

Hah, that image of EA's share value looks like mountain range, with smaller and smaller mountains as you proceed to the right. It's funny that shareholders didn't like the appointment of Wilson, perhaps they didn't think he had a sporting chance :P. Anyway, EA will do fine, because they have too many franchises that people like, even though many don't like EA.

Nightdragonist
Nightdragonist

It's about time that they change Riccittello. His policies are full of shi*.

"Wilson also spoke about his ambition for EA to "fail fast" going forward, meaning listening to consumer feedback and responding appropriately and quickly."

Show me what you got, Wilson. Good Luck

Vodoo
Vodoo

His first duty as the new CEO should be to lower the annual salary of the CEO.

Ceclor
Ceclor

It's never a good sign when you announce a new leader and your stock price drops.  Also, about this line:

"Wilson also spoke about his ambition for EA to "fail fast" going forward, meaning listening to consumer feedback and responding appropriately and quickly."

Did Wilson actually say that it was his ambition for EA to "fail fast?"  Either the author wrote that line wrong, or Wilson is the stupidest CEO ever.  To say that he wanted his company to fail fast is career suicide.  Especially when he expects to fail by "Listening to consumer feedback and responding appropriately and quickly." 

Finally, if it is Wilson's goal to respond to feedback "appropriately and quickly," let's hope he doesn't have the same "hoof in mouth" disease that many other EA employees have had over the last year or so.  His stock price will drop even further.

Zloth2
Zloth2

Minus 3% for not getting new blood into the company.  Whatever.  3% really isn't very significant.

nurnberg
nurnberg

Every time the new CEO will repeat words such as "DLC", "online" and "social", the share values' are gonna drop.

gamingnerd121
gamingnerd121

Too bad most of their IP's won't find better homes, because i'm pretty sure another developer could take better care of them.

chibi-acer
chibi-acer

Should've gone with Peter Moore, IMO.  But I don't know a whole lot about this guy, so good luck, I guess.

SingletreeAve
SingletreeAve

More lame sensationalized journalism from Gamespot.  A 3% fluctuation is insignificant long-term.  In fact, any self-respecting journalist would have done a little research and also reported that investment analysts are optimistic about EA under Wilson, and that the stock is rated Outperform with a $30 target.  Of course that doesn't make very good troll bait.

cagedwolf
cagedwolf

Wow, that's got to say a lot for job performance if stocks go down the day that you get hired. I wonder if this will go on his evaluation 

ZeroX91
ZeroX91

Not gonna lie, made me laugh.

Wrathesoul
Wrathesoul

Honestly just close down EA give all the poor companies like popcap there independence back so they can fix what EA has broke sell all their titles to GOOD developers so the once great games like dragons age etc can be made good again. We done need EA or from what I see from others want it. Everything EA says or does is negative for gamers. I feel bad for the people who work for that rotten company that aren't involved with the beyond bad decision making people. I have seen people say EA is the worst company in America I cant agree there are some real stinkers out there but I do feel EA is the WORST gaming company in the world.

Dav_id83
Dav_id83

How many time to I read that EA will listen to consumer feedback more than the fingers I have on both hands what a load of bull*****

jack00
jack00

3% ?!?! Quick we need to fire this guy, along with 10% of our staff!!

Is what EA is probably thinking righ tnow.

Unholy123
Unholy123

Right the guy who was in charge of the division that basically cranked out the exact same thing every year but with different rosters is going to be the guy who changes things up... uh huh...

EA will be doing more of the same that people don't like about it.

Don't expect this to change any hearts or minds all I think when I see this is "all hail the new king... he's just like the old king"

Cashmoney007
Cashmoney007

Wilson also spoke about his ambition for EA to "fail fast" going forward, meaning listening to consumer feedback and responding appropriately and quickly.

I would have never guessed?  So it works like that?  Who knew huh?

McGregor
McGregor

Could be worse, they could have just announced their latest in technology, only to have their stock prices plummet.

Pyerun
Pyerun

I guess they will make up for the falling stock prices with another Sims expansion pack.

KingTrax999
KingTrax999

"fail fast" should have been reworded.  Maybe "Respond Fast" or "Customer Driven" or "See me?  I'm a duck.  Quack! Quack!"

RedLegZeff
RedLegZeff

So we need to get back our credibility and infuse some creativity into our company, who should we hire? How about that guy in charge of the division that cranks out the same exact thing every year and has been on the decline? BRILLIANT!!!

brxricano
brxricano

"fail fast?? time to flip some EA shares this morning."

And is it just me but is he making like the CEO minimum wage or something lol

orgod
orgod

EA is the worst that happened in gaming History and I hope they crash and burn.

Penguinlord1
Penguinlord1

I wouldn't mind a gaming company being digitally-driven if they continued to make good games and not fragment a whole game into a pile of DLC packages. Sadly I feel EA will do exactly the opposite.

vadagar1
vadagar1

maybe they should try adopting something ... other than greed... running a company is way more than calculating the bottom line 

TrueGB
TrueGB

3%? That's it? Too small a change to necessarily blame on naming a new CEO.

Chrypt22
Chrypt22

@Vodoo 800k really isn't that much money... that is a modest amount.  Considering the work they put in with the sacrifice that many legit CEO's make in family life and personal life and the stress that comes along with it they should make a lot of money.  There is a level or ridiculousness that comes in with certain companies, but overall 800k is a good salary for someone that put int hat much work to get there regardless of what you think of the company.

Hurvl
Hurvl

@Vodoo Will that improve anything? People who dislike EA will still dislike them, even if he only got 100 000 a year. Overpaid executives is only the tip of the iceberg when it comes to EA hate.

cinerius
cinerius

@Ceclor

"Fail fast" is a phrase that has come out of the online and start-up worlds, where the emphasis is on prototyping and piloting new initiatives, which inevitably makes it easier to stop. When there have been millions sunk into a major development program, there is clearly more at stake for project leaders.

Basically it's "risk it hard and reap a ton or fail fast".

Vodoo
Vodoo

@Zloth2 Except when that 3% is millions of dollars.

ANUBISZER0
ANUBISZER0

Things like that are bound to happen when someone new takes the helm, no biggie.

Hurvl
Hurvl

@nurnberg Yeah, because the shareholders are all gamers like us. They first and foremost want the consumers to be treated fairly, no matter how that affects the value of their own shares.

Hurvl
Hurvl

@SingletreeAve Good news isn't as newsworthy as bad news, that's why magazines and sites are mostly filled with death, accidents, diseases, turmoil, scandals etc.

Thanatos2k
Thanatos2k

@brxricano He is.  It's a shockingly low amount.  Guess EA is trying to save money.  They can get away with it since they hired internally.  No corporate exec hired externally would have accepted a salary that low.

JosephShrike
JosephShrike

@orgod You should probably actually learn about gaming history before you form opinions. EA is far from the best thing out there, but gaming wouldn't have gotten as far as it has without them. Granted, they've changed considerably, but you should at least recognize the achievements that Electronic Arts has made before decrying them as the worst thing that's happened in gaming history.

TheWatcher000
TheWatcher000

@Penguinlord1 Why wouldn't they?  What sign have they ever given anyone that they would do anything that is gamer friendly, and not greed driven?

EA has clearly outlined what they are, and what they wish to become.  Anyone who thinks that they will change or are redeemable somehow and can reverse course is a fool.

When things get to this point, the best thing that can happen is for the company to go away.

I would love to be proven wrong, but the problem is not the talent.  The problem is with the parasites making all the key decisions at the top.


Trust me, I know how it works there,and I know the culture.

From top to mid, it is completely broken.

There is no fixing it.

Martyr77
Martyr77

@Hurvl @Vodoo It really is ridiculous what a lot of CEOs make. That money should go towards the working employees instead.

Ceclor
Ceclor

@cinerius   Someone might want to change that.  I did not know what that phrase meant and look how I interpreted it.  Not good.  Not good at all.

Tzardok
Tzardok

@Thanatos2k @brxricano I agree, it is lower than average (very low). But I still would accept it. Heck anyone of us would. I just wish they had been less political and did more addressing/recognizing that THERE IS AN ISSUE with EA. It's like G.I. Joe and transformers cartoons of the 80s, knowing is half the battle. They need to show they are aware and that they will try a 180

TheWatcher000
TheWatcher000

@JosephShrike @orgod EA WAS One of the Best Companies in the industry in the Late 80's Early 90's, but ever since the mid-late 90's they have been the absolute BANE of the industry.  They have been a problem far longer than they have been a solution.

As a gamer of nearly four decades, I have had plenty of time to follow what they have, and have not done.

I do recognize the achievements they've made, and I mourn what they've become.

Ever since they destroyed Interplay, Origin, and Westwood, they have never looked back.

They have good people still working for them.  I know some of them.  A few of them have been good friends for years.

There is a lot of talent that is going to waste because the top of the food chain is absolutely corrupted, absolute human garbage, and is irredeemable.


EA changed the Industry, but they have become the bane of the industry.

The industry does not need companies like EA anymore.

It's time for something different.

Unless some RADICAL changes can be made, I wish nothing for EA except Chapter 7, complete liquidation, and for the good talent that does reside there to find homes at different companies as quickly as possible with minimal disruption to their lives.  They don't deserve hardship because of the toxic upper management and vacant corporate parasites that have handcuffed their ability to create what they are capable of.

They deserve better.

The industry deserves better.


96augment
96augment

@Thanatos2k @Tzardok @brxricano "A CEO who is willing to put customer satisfaction over this quarter's revenue numbers". Does a CEO like that even exist, let alone in the game industry?

Thanatos2k
Thanatos2k

@Tzardok @Thanatos2k @brxricano What they need is a CEO who is willing to put customer satisfaction over this quarter's revenue numbers.

This guy has already said that he will not be doing so.