Electronic Arts on Tuesday warned its financial performance for fiscal 2009 will come up short from its earlier projections, due to slower sales in the U.S. and Europe.
The game maker had previously projected net revenue of $4.9 billion to $5.15 billion and earnings ranging from a net loss of 21 cents a share to net income of 7 cents a share for the fiscal year ending March 31, 2009. EA did not provide an updated outlook, other than to note one would be provided when it reports its third-quarter results in February.
"While we saw significant improvement in the overall quality of our key products this year, we are disappointed that our holiday slate is not meeting our sales expectations," John Riccitiello, EA chief executive, said in a statement. "Given this performance and the uncertain economic environment, we are taking steps to reduce our cost structure and improve the profitability of our business."
EA plans to launch several cost-cutting measures, from layoffs to facility closures to reducing its product lines, the company said.
That said, however, EA plans to continue investing in the quality of its games, new properties, and its direct-to-consumer initiatives. The company will debut several new titles and online games in 2010.