Electronic Arts expects to fall short of revenue and earnings guidance for fiscal 2009 due to lower-than-expected sales of software in North America and Europe.
The Redwood City, Calif.-based publisher said it expects to cut costs by reducing its fiscal 2010 product portfolio and "additional associated headcount reductions and facility consolidations."
In October, EA cut around 600 jobs, or about 6 percent of its total global workforce. The firm said the layoffs would save $50 million annually.
EA had previously expected revenues for fiscal 2009 to be between $4.9 billion and $5.15 billion. Earnings per share were projected to be between a loss of 21 cents per share and earnings of 7 cents per share.
EA CEO John Riccitiello said in a statement, "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."
He added, "While we are cutting costs, we remain committed to investing in great game quality, in new properties and in our direct-to-consumer initiatives. We will be launching several new titles and online games in fiscal 2010."
Article supplied by Edge-Online