EA to Close 9 studios.

Electronic Arts has outlined more details regarding its financial savings plan, first announced earlier this month, noting that although restructuring will cost around USD 55-65 million over the next few quarters, the company stands to save USD 120 million annually as a result.

Around 1000 people will leave EA, the majority by the end of March 2009, a move that will cost around USD 30-35 million, while nine studios will be consolidated or closed.

Among those to be shut will be the Black Box Studio in Vancouver, with that team moving to nearby Burnaby. Location-based costs are expected to reach USD 23-28 million, with other asset impairment charges totalling approximately USD 2 million.

"EA is implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities," read a statement. "The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers."

EA's share price closed up on Friday by 3.76 per cent at USD 17.39.

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pixelsword3644d ago

...Peter Moore hasn't jumped ship yet.

BigKev453644d ago

EA, stop making NBA Live. Leave it to the 2K guys for starters.

lelik3644d ago

i wonder what the other studios are

donscrillinger3644d ago

now if they close down the people that make madden we might get an real version of what football video game should be ..not that arcady crap there putting out each and every year

PopEmUp3644d ago

that just pure stupid if they actually do that, why should that close down a studio that make them hundred of million when set on to the marker or on retail shelve, it like saying they should close down the studio behind the making of FIFA, that will be insane

donscrillinger3644d ago

but if you go to any gamestop around the country there are an ton of madden 06-09 for the 360 sitting in there .that should be an sign to step there game up but they and my friends have went back to playin nfl 2k5 and all pro 2k8 to get that football we long for in our system