Top
70°

EA shares jump on cost-cutting plans, outlook

EA, which was already in the midst of a turnaround when the recession hit, outlined plans to cut costs aggressively, laying off 1,100 workers -- about 11% of its workforce -- and closing 12 facilities. It also shifted some key game releases into the next fiscal year, which begins in April.

"We were encouraged by the tone of the conference call, and in particular think that the company clearly stated its plans," wrote Michael Pachter of Wedbush Morgan. "Accordingly, we think that EA is only one or two quarters away from restoring investor confidence."

Riccitiello outlined plans to focus more of the company's resources on the Nintendo Wii, which has passed up the Xbox 360 and PlayStation 3 as the most popular of the next-generation gaming consoles. He said the company has a "spectacular slate" of titles for the Wii set for fiscal 2010, including a Tiger Woods golf title and more sports offerings.

Read Full Story >>
marketwatch.com
The story is too old to be commented.