EA CEO Resigns Due to Financial Misses
March 18, 2013 6:50 PM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
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.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
Quick Note: EA Will Add More Servers for "Overworked" SimCity
March 7, 2013, 1:24 PM
EA Expects Digital Sales to Overtake Box Retail Game Sales in 2 to 3 Years
August 13, 2012, 9:50 AM
Report: Windows 9 “Threshold” Tech Preview Coming Next Month
August 15, 2014, 11:29 AM
EA Access Subscription Gaming Service Now Open to All Xbox One Users
August 11, 2014, 4:32 PM
Quick Note: Windows Phone Store Surpasses 300,000 Apps
August 8, 2014, 12:30 PM
China Kicks Symantec, Kaspersky Off Approved Software List
August 4, 2014, 1:48 PM
Nintendo Reports Yet Another Quarterly Loss, Sells 510,000 Wii U Consoles
July 30, 2014, 12:00 PM
Quick Note: Sony Says EA Access "Does Not Bring Value" to PS4 Gamers
July 30, 2014, 8:11 AM
Most Popular Articles
Lumia 830 Gets Major Upgrades Including New 20.1 Megapixel Toshiba Sensor
August 15, 2014, 6:00 PM
With USB Type-C Spec Finalized, Reversible Cables Will Soon Be Upon Us
August 13, 2014, 8:46 AM
Windows Phone, BlackBerry Smartphone Market Share Falls to 2.5%, 0.5% Respectively
August 15, 2014, 9:44 AM
Update: Samsung Gets Official With 4.7”, Aluminum-frame Galaxy Alpha Smartphone
August 14, 2014, 8:56 AM
GM Concedes That the Cadillac ELR Doesn’t Really Compete with the Tesla Model S
August 15, 2014, 5:42 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information