PS We needs a new Mechwarrior game preferably a Mechwarrior Mercenaries sequel or remake. Have a nice Easter.
EA strategy 'bankrupt' says ex-EA EVP
Former EA Mobile head Mitch Lasky blasts former employer, expresses amazement that company hasn't been acquired or management ousted.
After EA lowered its fiscal expectations earlier this week, analysts responded with politely reserved disappointment. The harshest of criticisms came from Wedbush's Michael Pachter, who merely suggested that the company "lacks introspection."
Not all reactions to the news were so diplomatic. In a post on his personal blog, former head of EA Mobile and Jamdat founder Mitch Lasky took issue with the publisher's direction, particularly the management team in the years since John Riccitiello took over as CEO. The most pressing of Lasky's concerns was the company's insistence on trying to grow its traditional gaming business.
"EA is in the wrong business, with the wrong cost structure and the wrong team, but somehow they seem to think that it is going to be a smooth, two-year transition from packaged goods to digital," Lasky said. "Think again."
Before leaving the company in early 2007, Lasky said he wanted the company to embrace the transition to digital distribution and the games-as-service approach. While EA has since devoted attention to both of those areas, Lasky said it was unwilling to do so if it meant smaller revenues from its traditional EA Sports and EA Games divisions.
Among the missteps Lasky pointed to in those divisions were "ridiculous" and "appalling" spending on a number of projects, including Spore, The Godfather, Superman Returns, and The Simpsons. He also criticized the NFL and ESPN exclusivity deals for the Madden series, saying they hamstrung EA Sports' profitability.
"But by far the greatest failure of Riccitiello's strategy has been the EA Games division," Lasky said. "JR bet his tenure on EA's ability to 'grow their way through the transition' to digital/online with hit packaged goods titles. … Since the recurring-revenue sports titles were already 'booked' (i.e., fully accounted for in the Wall Street estimates) it fell to EA Games to make hits that could move the needle. It's been a very ugly scene, indeed."
Lasky pointed to Spore, Dead Space, Mirror's Edge, and Need for Speed: Undercover as examples of expensive games that didn't hit with consumers the way EA had hoped. He also brought up the functional closure of Mercenaries 2 developer Pandemic, which he called "half the justification" for the $860 million acquisition of BioWare and Pandemic.
"And don't think that Dante's Inferno or [Star Wars: The Old Republic] is going to make it all better," Lasky said. "It's a bankrupt strategy."
Lasky wrapped up his assessment of his former employer by expressing surprise that the publisher has neither been acquired nor seen its board of directors oust Riccitiello and the rest of the management team.
"It's remarkably hard to kill a company doing $4 billion in revenues," Lasky said. "But with flat or down stock performance since Q3 2003, how long are the institutional investors going to continue to hope against hope for a turnaround?"
Content you might like…
Users who looked at this article also looked at these content items.
Hot Stories
Newsmakers
-
Biden: No legal problem with taxing violent games
United States Vice President Joe Biden believes there is no legal restriction on ability to tax violent media. Full Story
- Posted May 13, 2013 12:50 pm PT
-
Just Cause dev promises 'holy f**king sh**' moments in future games
Avalanche Studios co-founder says developer's ambition is for action, not moments that make players cry; steampunk-style game on hold. Full Story
- Posted May 15, 2013 6:33 am PT
Featured Stories
-
Bungie shoots down Destiny for PS Vita rumor
Developer confirms image suggesting version of upcoming shared-world shooter in development for Sony's latest portable is a fake. Full Story
- Posted May 16, 2013 5:08 am PT
-
Ubisoft planning to release games more frequently
Assassin's Creed and Far Cry publisher says its network of 26 studios and over 7,000 developers will allow company to ship major franchises more regularly. Full Story
- Posted May 16, 2013 4:42 am PT
-
Metro: Last Light dev responds to workplace conditions claims
4A Games creative director Andrew Prokhorov thanks Jason Rubin for telling the studio's story, but says, "We deserve the ratings we get." Full Story
- Posted May 16, 2013 12:44 pm PT
-
EA opens DICE LA to make Star Wars games
DICE head would also like to poach top talent from rivals Infinity Ward and Treyarch. Full Story
- Posted May 15, 2013 3:28 am PT
-
EA dropping Online Passes - Report
Future EA games won't require Online Passes; the service is being scrapped after tepid player response. Full Story
- Posted May 15, 2013 8:28 pm PT
Related Game
Star Wars: The Old Republic
- Publisher(s): Electronic Arts
- Developer(s): BioWare
- Genre: Role-Playing
- Release:
- ESRB: T







