The joys of EA (no spam)

fable · Post by **fable** » Thu Nov 12, 2009 1:14 pm

First, there's this news, which you'll definitely want to read. Or briefly:

After lengthy negotiations, Electronic Arts closed it’s anticipated acquisition of social gaming startup Playfish for $275 million in cash. An additional $25 million in stock will be set aside for retaining the top talent at the startup, and another $100 million in earnouts are part of the deal as well if the business hits certain milestones. So the total value of the deal could amount to as much as $400 million when all is said and done...

Must be doing pretty well these days, that EA! Oh, but now, there's also this. Or once more, in brief:

With the loss of nearly 1,500 jobs at Electronic Arts, inevitably some game projects were going to be cut as well. Indeed, during a conference call EA CEO John Riccitiello confirmed that "over a dozen" titles got the ax and that the company is looking to reduce its overall game pipeline considerably...."The way we are looking at it now, there are approximately 50 there this year, and something in the high 30s next year. So when you consolidate this thing, it is about a 50 percent cut over two years."

Soooo....they had $400 million to acquire another company, but cut 1500 jobs and product by 50% in the next two years. Presumably they just know the games they're buying are much better than the games they're, you know, developing, and the people who are developing them are just too dumb to be kept on and perhaps get sent to perfection, as represented by Playfish.

Who can say? I'm just an ignorant little old guy with a titanium-headed rocket-launching cane, but it sure sounds like some unemployed people are going to be experiencing a lot less cheer this holiday season while EA's executives find plenty of cash to buy another company to suck dry.

dragon wench · Post by **dragon wench** » Thu Nov 12, 2009 1:51 pm

Can't say I'm especially surprised....
It's the same old story... the rich get richer and the have-nots get bent over a barrel and given the shaft for their holiday surprise.

Tricky · Post by **Tricky** » Thu Nov 12, 2009 1:58 pm

If you sign a deal with a devil, you know what you're getting into. It's a shame for those people, but I can't say I feel sorry for their loss.

*wants to read an article about a company that rejected a publishing deal with EA

Sain · Post by **Sain** » Fri Nov 13, 2009 9:25 pm

This sure as hell won't help the job crysis.

endboss · Post by **endboss** » Sat Nov 14, 2009 12:50 pm

I think the strategy is to buy up everyone, then you'll make money no matter what because you'll be the only supplier. It's a wonderful strategy that lots of companies follow and it's the reason why there's not a recession going on right now.

Xandax · Post by **Xandax** » Sat Nov 14, 2009 1:31 pm

Well - most companies exists to make money to the stakeholders. And some companies does it like this.

Just boycott their games if disliking the company, support indie companies or competitors and hope they don't fall for it and get bought up by others.

endboss · Post by **endboss** » Sat Nov 14, 2009 11:29 pm

Xandax wrote:Well - most companies exists to make money to the stakeholders. And some companies does it like this.

Maybe back in ancient times but now the goal is to make as much money as you can, declare bankruptcy, and laugh at the stockholders as you and your minions sail off into the sunset. Have you missed what has been going on the past year? Companies don't care about investors. They bet everything on every decision without thinking.

Xandax · Post by **Xandax** » Sun Nov 15, 2009 2:08 am

endboss wrote:Maybe back in ancient times but now the goal is to make as much money as you can, declare bankruptcy, and laugh at the stockholders as you and your minions sail off into the sunset. Have you missed what has been going on the past year? Companies don't care about investors. They bet everything on every decision without thinking.

That's nonsense. Dog peg everybody and everything because you've seen what you believe to be a pattern in some (big) industries or from some people.

Ode to a Grasshopper · Sun Nov 15, 2009 3:16 am

Xandax wrote:Well - most companies exists to make money to the stakeholders. And some companies does it like this.

Just boycott their games if disliking the company, support indie companies or competitors and hope they don't fall for it and get bought up by others.

I miss Looking Glass Studios.

Tricky · Post by **Tricky** » Sun Nov 15, 2009 10:15 am

I hear you there, Grasshopper.

endboss · Post by **endboss** » Mon Nov 16, 2009 10:31 am

Xandax wrote:That's nonsense. Dog peg everybody and everything because you've seen what you believe to be a pattern in some (big) industries or from some people.

I call it as I see it. There are exceptions, but stockholders are much less important than we used to be.

Xandax · Post by **Xandax** » Mon Nov 16, 2009 11:42 am

endboss wrote:I call it as I see it. There are exceptions, but stockholders are much less important than we used to be.

Calling it as you want to see it, is not the same.
It is pretty clear that it was an attempt to be funny or something - but trying to paint companies as only out to cheat over everybody by fraud is a far from "calling as you see it".