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EA COO John Pleasants: 'Going Digital' Is Key To Returning To Profitability

There was a time when Electronic Arts (NSDQ: ERTS) was the game-company stock to own-with the most cutting-edge games and tons of cash on the books. But over the past few years, it has lost much of that luster. EA posted a $120 million loss for the most recent quarter-its fourth consecutive quarter in the red-and has laid off about 1,100 employees in the process.

While some analysts argue that now more than ever EA needs to focus on what it does best-retail sales-the company is instead testing out a bunch of new and unproven distribution channels (like digital downloads) and business models (like micro-transactions). In an interview with paidContent, COO John Pleasants says EA's emerging digital strategy, which includes social gaming, virtual goods and even distributing games via OnLive, will get the company back in the black.

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SpoonyRedMage3598d ago

Poor EA, they come out with some really top quality stuff but they've had a really bad reputation until recently and it's crippling them.

poopface13598d ago (Edited 3598d ago )

Iv never been big on many of their games tho, especially the sports ones(2k has always been better) so I dont have much to be critical about. I really liked DEAD space. It was amazing, but unfortunately not too many people played taht game to see what EA can do.

I think alot of games company's are going to go digital and try to cut out the middle man. Especially trying to compete with used game sales. Alot of people will DL games instead of buy used if they are offered for an actual discount. Its not very hard to beat the prices of EB's used games, but we will see if they actually try to price competitively.

Some people prefer to have a hard copy of their games, but like me, dont find it necessary to have every game on disk. Especially not "sports game 23" of which EA makes alot.

Kinetix3598d ago

True. Dead space and mirrors edge were great games but didn't do so well. I think it's gonna take a smash hit for them to return to profibility any time soon. Digital downloads and those methods entioned will take a long time to give them a return, but then again I could be wrong.