Electronic Arts (EA) announced today that it expects net revenue and earnings per share for fiscal year 2009 to be below the financial guidance previously provided at the end of October. The revised expectations are primarily the result of lower than expected sales across North America and Europe. EA is continuing to pursue cost saving initiatives including a reduction of its product portfolio for fiscal year 2010 with additional associated headcount reductions and facility consolidations.
“While we saw significant improvement in the overall quality of our key products this year, we are disappointed that our holiday slate is not meeting our sales expectations,” said John Riccitiello, Chief Executive Officer. “Given this performance and the uncertain economic environment, we are taking steps to reduce our cost structure and improve the profitability of our business.”
Riccitiello added that while EA is cutting costs, they remain committed to investing in great game quality, in new properties and in our direct-to-consumer initiatives.
Image credit: Frank Caron of ars technica.