EA CEO Resigns Due to Financial Misses
March 18, 2013 6:50 PM
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He has held himself accountable for falling short of the company's financial guidance
Electronic Arts' (EA) chief executive officer announced his resignation today due to
missed financial targets
EA CEO John Riccitiello has resigned after six years of service, which will be effective March 30, 2013. Riccitiello will also no longer be a member of the board of directors.
"This is a tough decision, but it all comes down to accountability," said Riccitiello in an internal memo. "The progress EA has made on transitioning to digital games and services is something I'm extremely proud of. However, it currently looks like we will come in at the low end of, or slightly below, the financial guidance we issued in January, and we have fallen short of the internal operating plan we set one year ago. EA's shareholders and employees expect better and I am accountable for the miss.
"EA is an outstanding company with creative and talented employees, and it has been an honor to serve as the Company's CEO. I am proud of what we have accomplished together, and after six years I feel it is the right time for me pass the baton and let new leadership take the Company into its next phase of innovation and growth. I remain very optimistic about EA's future; there is a world class team driving the Company's transition to the next generation of game consoles."
EA's board of directors has appointed EA executive Larry Probst to fill in as executive chairman until the company finds a permanent CEO. Probst was CEO of the company from 1991-2007 when Riccitiello stepped in.
"We thank John for his contributions to EA since he was appointed CEO in 2007, especially the passion, dedication and energy he brought to the Company every single day," said Probst. "John has worked hard to lead the Company through challenging transitions in our industry, and was instrumental in driving our very significant growth in digital revenues. We appreciate John's leadership and the many important strategic initiatives he has driven for the Company. We have mutually agreed that this is the right time for a leadership transition."
Game publishers like EA have had a rough time in the financial department due to
digital sales becoming as increasingly popular
as box retail game sales -- and it doesn't help that EA recently had server issues with its largely popular release "SimCity."
"SimCity" launched earlier this month, and many servers crashed during the international release. EA announced that it would
add more servers
to help out the workload.
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RE: Treating Customers Right
3/18/2013 10:13:40 PM
TOR's only real problem was the lack of something to do after you finished the story. Which happens with most new MMOs.
And due to the high production values with voiced cutscenes by both player and NPC, it takes longer for them to put out more content.
The only other thing I wished for was a more in depth crafting system.
RE: Treating Customers Right
3/18/2013 10:39:34 PM
There was more wrong with TOR than that. Such as the atrocious engine performance. Badly sub par visuals for the performance it did have. Abysmal PVP system. Horrendous developer behavior as far as making huge, sweeping, and nonsense changes to class balance early on leading to the worst FOTM rubber banding I've ever seen.
Moving from those issues we have the way they handled the launch, by opening first with too few servers, knee jerking and creating way too many servers. Then when the game bled subscribers in record fashion, leaving a solution to dead servers sit until something like six months after launch. When some servers had dwindled to the point of having as little as 6, yes 6 players on in the fleet at primetime.
The pervasive feeling of hopelessness this fostered, Lack of ability to form and retain any kind of guild or communities, absolutely decimated interest in the game even further.
Lets talk about a few more things, like taking six months to patch in completely standard things like a guild bank and customizeable UI because the game was shoveled out the door in a horrendous state thinking the pretty cutscenes would distract people for six months.
No I am afraid I have to disagree that that was TOR's only problem.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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