Electronic Arts lowers its financial forecast, plans to expand Mirror’s Edge and Dead Space

Just before Electronic Arts went on a conference call on December 9, 2008, the company announced it would be “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.”

E.A. CEO, John Riccitiello, was quoted in the announcement saying:

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. Given this performance and the uncertain economic environment, we are taking steps to reduce our cost structure and improve the profitability of our business.

During the conference call, Mr. Riccitiello revealed that 17 games released in 2008 received an average Metacritic score of 80. He also confirmed that Mirror’s Edge and Dead Space will become expanded franchises.

Mr. Riccitiello also said to expect fewer titles to produced next year (2009) and blamed retailers for shortening their stock on all but the best holiday games, as to why E.A. lowered it’s financial forecast. The company will also be merging brands together as part of it’s studio consolidation plans.

This news comes just a month after the company laid off 600 employees as a result of a $310 million loss in Q2. EA hasn’t been the only company affected by this economic downturn as seemingly every day there is another story about people losing their jobs in droves. It’s enough to really make you wonder if anything is really recession-proof.

To those who have been affected, best wishes go out to you from all of us here at Gamertell.

Read [Electronic Arts] Via [Joystiq] Also Read [Joystiq] Also Read [Gamertell]