EA Confuses Us With Numbers

Demon_Skeith

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We thought EA was doing pretty well--they seem to be behind 90% of the games coming out, and people seem to be playing them in droves-- then, they reported losses.

Shortly after Wall Street shut down yesterday, EA reported just $640 million in revenue during its second fiscal quarter--an 18 percent year-on-year decline.

So we thought EA was losing money. But we're wrong again! EA says the losses are the result of a change in EA's accounting practices, and don't seem to indicated a "real" money hemorrhage. The accounting changes will see $296 million in revenue from "certain online-enabled games" not being reported until unspecified "future periods." If included, the revenue would mean EA was making more than analysts even expected.

Also: Layoffs: "We've also announced a restructuring as part of a plan to better align cost with revenues," he said. The 24-month plan will cost EA between $90 million and $110 million, but will result in around $25 million to $30 million in annual savings."

We're going back to making fun of old people and dinosaurs now.
 
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