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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Since he took over they've lost 2.2Bil
3/19/2013 8:16:36 AM
Maybe if you pick a leader who HATES DRM I'll support you. Until then your games can go fly a kite (I'll keep flying my flag...Guess what's on it) :)
GOG.com FTW! If I can't buy your game without DRM, you won't get my money. On top of that they keep producing the same thing and usually with the same bugs as the last gen. Start concentrating on my single player experience and gameplay over graphics and you'll have a better shot at more of my money too.
Then again, just go out of business so we can get back 100 great devs like runic etc. Between you & MS you've destroyed most of the companies I used to give my money to like it was a yearly donation...LOL. Now I see EA as the publisher and immediately think, frak, more DRM and a game pushed out before it's done and with less than 15hrs of game time for $60. Oh well, back to gog. :( These days I want 15hrs for $15 and far more time for what they ask. If I can finish your game on a saturday you've ripped me off no matter how pretty it is. I'm glad HD'ing old games is coming on strong. I'd rather pay $20-40 for a remake that gives me 50-100hrs over anything today at $60 (especially if I missed the game to begin with back then). Today's kids haven't played BG1&2, or many of the infinity engine games, most missed a lot of neverwinter nights, ultimas, wizardry's, bard's tales, HOMM's, Age of empires, age of wonders, the first 3 elder scroll games etc etc...Kids today have no idea what they've missed and what we used to get for $30-50. I put 200+hours into Wiz8 (it had 2 endings...LOL) for $53 10yrs ago, about 120 in wiz7. What happened to gaming? It all got REALLY pretty but extremely short. Thank god we have wasteland2, shroud of the avatar, project eternity etc coming back in style. I'm hoping these will be 50hrs+ of fun.
Don't get me wrong, I like new content, but not if its over in a few hours tops. These days I pretty much ignore anything but strategy or rpg. Serious sam types get my money but that's $20-30 for a lot of fun. I wouldn't ponder the same game at $60. I really hope big game devs start going back to gameplay over graphics. It seems we only get that from small devs. Look at torchlight/torchlight2 vs diablo3. I could buy both torchlights for less than d3 and not be forced online to play while getting 4-8x in my gameplay time. I'd have enough left over out of $60 to throw in grimrock and some other gog game for $5-10...LOL. Jeez. This is why you're losing money. I HATE EA. Long live devs like runic, almost human, inxile, spiderweb, portalarium etc etc...
yeah baby...Lord British has been funded! :) Great games can be made for $500K-4 mil and make a lot of money at $15-30...Why do we keep getting crap for $60? There are a TON of people that can't afford that price. You'd get a lot more sales at $30 with no DRM and more gameplay.
woot. "shroud of the avatar stars YOU"...Bring on a new trilogy Lord British! heck give me 10 more to go please. :)
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