Electronic Arts Job Cuts: Grim Outlook for Game Industry

Nov.10.09 | About: Electronic Arts (EA)

The latest news will come as no surprise to readers here. I have written multiple articles on how and why Electronic Arts (ERTS) is losing so much money. And I have written multiple articles about what is wrong with the games industry and why it is shedding so many staff.

This latest news is that EA losses are even worse than before. It made a fiscal Q2 loss of $391 million, 26% up from the year before. Whilst game sales are booming and the customer base is bigger than ever before. So now EA has instituted massive redundancies. Current estimates are that 1,500 staff are to go. The worst hit studios seem to be Tiburon, Mythic, Black Box and Redwood Shores. Maybe shareholders should be looking at the strategic management of the company.

This is a huge amount of personal tragedy for those involved. There is no way that the rest of the games industry can absorb so many people, especially when so many have already been made redundant elsewhere. So lots of people will be leaving the industry to work in other industries. The upside here is that game developers tend to be very intelligent and well educated people and can generally expect to earn far more outside the game industry and to experience far better working conditions too.

To anyone training to work in the game industry or thinking about such training things look very bad indeed. Not only are there going to be far less jobs for some time, there will also be many very experienced applicants for every position that comes up. Time, perhaps, to reconsider your options.

Finally, if any EA management are visiting here I very strongly suggest that you read this, it was written with you in mind.