<![CDATA[Gawker: electronic arts]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: electronic arts]]> http://gawker.com/tag/electronicarts http://gawker.com/tag/electronicarts <![CDATA[AOL Layoffs Tomorrow to Kick Off Depressing Holiday Season?]]> 'Tis the season to rush up layoffs so they don't fall in the sacrosanct Thanksgiving-to-Christmas period: An AOL insider tells us the company is slated to let go around 100 people tomorrow, following 1,500 firings Electronic Arts announced today.

AOL is expected to complete mass layoffs after its spinoff from Time Warner is complete, supposedly by the end of this year. But it sounds like some cuts are too obvious to wait. One hundred firings is modest for a company of around 6,000 workers; AOL continues to work on "Project Everest" to plan the rest, our tipster said. If you know more, email us.

UPDATE: Kara Swisher at All Things D, who has written two books on AOL, was told by her sources that 100 or so layoffs are indeed coming down today. PaidContent later reported likewise.

Meanwhile Electronic Arts is laying off 17 percent of its workforce after the company saw net sales drop 12 percent from the prior year. Which, if you think about the state of the economy, is bizarre: Why aren't you unemployed people out there buying more videogames? Staying home is cheap.

(Image via Zazzle t-shirt/sticker)

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<![CDATA[Can you really rent-a-coder?]]> Electronic Arts recently shut down Blueprint, a strategic project to enable the company to develop more software without onsite programmers. Coding Horror blogger Jeff Atwood is a professional programmer who lives in Berkeley. That makes him biased against cheap-outsourced-programer sites like Guru.com. But Atwood's hard-to-explain discomfort — and the war stories left by commenters — are based on an unpopular truth: There's no substitute for being in the office.

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<![CDATA[Electronic Arts kills nonexistent outsourcing project]]> No one knew exactly what the Blueprint division of videogame maker Electronic Arts was up to. Officially, it didn't exist. Now, it officially hasn't been shut down, but there's no one working on it. An ex-employee who blabbed to Variety tried to explain: Blueprint's dozen or so staff were charged with creating a way for EA to reliably develop games without hiring onsite, full-time employees. Now more than ever, you'd think that's a businessworthy project. Instead, Blueprint seems to have confirmed there's no substitute for a building full of crazed code monkeys with all the hardware and free snacks they need to crank out Madden NFL 09.

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<![CDATA[Electronic Arts Lays Off Six Hundred]]> Word hit today through the grapevine that "massive" layoffs had hit at Electronic Arts. Initially we heard as much as 20 percent of the staff has been let go, but a quick check with Electronic Arts confirms that it was actually 6 percent, or about 600 positions.

"EA is continuing to make progress against our business plan, but we have the constant imperative to keep our costs in line as we grow our revenues and improve our margins," Electronic Arts spokesperson Mariam Sughayer told me. "Decisions that impact people's jobs are always extremely tough but all of the people affected will be treated fairly and respectfully."

"We have begun a cost reduction initiative which will include eliminating approximately six percent of our existing workforce - or approximately 600 positions. We will also reduce hiring and close some open positions that we had previously planned to fill this fiscal year."

"All parts of EA have reviewed their team sizes to adjust employee numbers. The goal is to ensure we're resourced in a way that allows us to continue to grow our revenues while at the same time keeping our costs under control and improving profitability. These changes will be announced to affected staff starting October 30."

"These are challenging economic times around the world, and it's impossible for any business leaders to predict the future. However, EA has made good progress in improving product quality, building a holiday lineup of titles that is extremely strong, filling our new IP pipeline, and expanding our Direct-To-Consumer and online businesses. As well, our talent remains the best in the industry."

These latest layoffs come during a streak of downsizing that appeasr to be hitting gaming companies across the board. It also hits at a time when EA seems to be making a turn around in their development practices, shifting perhaps more to external studios and new strategies.

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<![CDATA[Mevio, née Podshow, replaces cofounder with new CEO]]> As they say in fashion: One day you are in, and the next day, you are out. And the same is true even for podcasting startups long after podcasting went out of style. Ron Bloom, cofounder of then Podshow, now Mevio, just touted the rollout of a site redesign on Monday. Now a tipster tells us that Bloom has been replaced as chief executive by Jeff Karp, the SVP of marketing at video game publisher Electronic Arts. The company received $15 million more in funding in July for a total of $23.5 million. The new site has rolled out "channels" of entertainment and other programming, but one look at the trend on Compete shows you all you need to know about the startup's prospects even after the name change.

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<![CDATA[Spore maker attempts compromise with copyright crusaders]]> Will Wright's new videogame, Spore, allows buyers to install it on three computers at most, unless they buy another license. Copyright activists and just plain huffy consumers clogged Amazon.com with 2,000 one-star reviews for the game, based solely on the three-machines limit. Spore's maker, Redwood City-based Electronic Arts, has upped the limit from three to five. An EA spokesperson told the Wall Street Journal that fewer than one percent of buyers attempt to install on a fourth machine (EA can collect these stats from its activation servers, just as it can change the number of allowed machines on the fly.) "Less than one percent" is a standard PR dodge. Still, in theory, boosting the limit to five should appease all but a few customers. In reality, the not-so-smart mob won't be happy until the game is free and EA tries to make its money selling T-shirts.

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<![CDATA[Ars Technica beats Spore DRM with a phone call]]> Copyright crusaders are climbing over one another to denounce Will Wright's Spore from video game publisher Electronic Arts. Even the normally stable ZDNet warns Spore's three-install limit could kill PC gaming. Kill it! Meanwhile, the scientific-methody gang at Ars Technica decided to test the system. They hit plenty of annoyances — at one point Spore's DRM servers were down — but a call to customer service got them more than they expected:

We decided to tell him that we had rented the game. He assured us he could resolve the situation and did—issuing me another CD key for the game. We wanted to make it clear we understood the DRM restrictions and asked about the install limitations and he informed me that "you could install the game all day long on the same machine—it was limited to installations on three separate machines." The only catch: the game had to be reinstalled after the new key was issued.

While the issue of the install limit is a touchy one, it doesn't look like a normal install will do much to use up your limit, and in fact we surpassed the install limit by a few times before running into an issue. Even after being told that we were "renting" the game, EA was happy to give us a new key to run the game. In this case, customer service wins, and we left wondering if the DRM controversy might be more philosophical in nature than rooted in any real-world inconveniences.

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<![CDATA[Electronic Arts gives Take-Two shareholders the Yahoo flu]]> Take-Two Interactive, the marketer of Grand Theft Auto and various sports videogames, has watched its stock price plummet to $16.99 on the news that Electronic Arts has decided to quit trying to buy the company for $26 a share. Much like Yahoo's drop after Microsoft took an offer off the table, Take-Two's shares are headed south of where they were when EA initially made an offer. I'm counting the days until a third company meets the same fate and I get to write the obligatory trend piece.

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<![CDATA[Electronic Arts publicity stunt seizes up London traffic]]> As part of Electronic Arts's efforts to promote Mercenaries 2: World in Flames, the video game publisher gave away $35,340 in free gas at a station in a north London neighborhood. The game, set in Venezuela, uses gasoline as a form of currency. However, the scene that developed looked more like Baghdad shortly after the fall of Saddam Hussein, with a line forty cars long and actors in camouflage fatigues trying to placate angry commuters trying to get out of their driveways. In the end, the company ended the giveaway with a little over half the free fuel doled out.

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<![CDATA[Electronic Arts deigns to view Take-Two's PowerPoint deck]]> After Electronic Arts said it will not renew its takeover bid for videogame house Take-Two, Take-Two chairman Strauss Zelnick wrote EA CEO John Riccitiello a letter asking if his company could please present itself to EA management before it makes any final decisions. Riccitiello relented. Zelnick's goal: Convinve EA to raise its current offer to buy Take-Two from $25.74 per share, a price Zelnick says "undervalues Take-Two's franchise and financial performance." For his part, Riccitiello announced over the weekend EA would allow its bid to lapse this evening because it would be impossible to get any deal done before the start of the holiday shopping season. Take-Two shares are down 2.5 percent on today's trading. We always thought PowerPoint was a bit of a buzzkill.

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<![CDATA[Shawn Fanning's company sold for $15 million, not $30 million]]> Napster founder Shawn Fanning never got a payday for his greatest creation. His latest, videogame social network Rupture, sold earlier this year — but for less than rumored. The actual price Electronic Arts paid, an SEC filing reveals, was $15 million, not $30 million. [Silicon Alley Insider]

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<![CDATA[Scrabulous returns wearing fake moustache, calls itself Wordscraper]]> Wordscraper is the latest Facebook game that looks remarkably like Scrabble from developers Rajat and Jayant Agarwalla. The new name and new look will hopefully be enough to keep the law dogs from Hasbro and Electronic Arts from running it out of town like they did to Scrabulous. Besides the new name and the new color scheme, players are allowed to modify the board and futz with the rules.

If it ends up looking like Scrabble, it'll be the users who are infringing on copyrights, not the creators. One problem Wordscraper might have in becoming as popular as Scrabulous once was? Scrabulous has completely disappeared from Facebook profiles, meaning members will have to look for and re-select Wordscraper. When searching apps for "Scrabble," finding the official version is much easier, and Facebook has made it harder for apps to spread from user to user on the social network. So, anyone up for a game of Attack?

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<![CDATA[Why Facebook users won't play Scrabble]]> An official version of Scrabble has made it to Facebook — far too late to displace Scrabulous, the unofficial knockoff, which has millions of users and fans so devoted they've posted music videos on YouTube in honor of the word game. Electronic Arts will release a licensed version for U.S. Facebook users; another official Scrabble application, meant for users abroad, has only 4,000 users.

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<![CDATA[EA won't take no for an answer]]> Electronic Arts once again extended its $2 billion offer to buy Take-Two, the makers of Grand Theft Auto. Once again, Take-Two said no. "Their proposal still significantly undervalues Take-Two," said chairman Strauss Zelnick in a statement. [Reuters]

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<![CDATA[EA buys mobile rival Hands-On's Korean arm]]> 2008_01_21_eamobilejpg.jpgIs San Francisco-based mobile videogames startup Hands-On Mobile in trouble? That was my first thought on reading that it had sold its Korean unit to Electronic Arts. EA moved to buy Hands-On's closest competitor, Jamdat, in 2005, and has been aggressively expanding in cell-phone games since. Hands-On, once rumored as an IPO candidate, has a string of offices around the globe, which must surely be expensive. It's possible EA made an offer Hands-On couldn't refuse. But the fact that Hands-On is selling, not buying, speaks of strained finances.

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<![CDATA[EA extends, but does not raise its bid for Take-Two]]> Electronic Arts' original bid to acquire videogame maker Take-Two expired on Friday, but was renewed this morning. Despite Wall Street predictions to the contrary and a $1 billion cash infusion, EA did not raise its $25.74 a share offer for the company behind the Grand Theft Auto series. Analysts predicted EA would raise its bid above $30 a share and shareholders bought the hype, trading the Take-Two up to a $27.10 close on Friday. Take-Two CEO Ben Feder said that spike and a decline in the number of Take-Two shares tendered indicates shareholders recognize EA's offer "undervalues our company."

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<![CDATA[Shawn Fanning might never have to pitch Volkswagens again]]> Finally, Napster creator Shawn Fanning will make a little bank. After Napster went bankrupt and he sold Snocap to Imeem for not much at all, Fanning and cofounder Jon Baudanza have sold social network startup Rupture to Electronic Arts for $30 million. The best part: Fanning and Baudanza did it without launching a product out of beta. All Rupture ever built was a still-in-beta network for World of Warcraft gamers. Investors cashing in on the Volkswagen pitchman's payday (see video) include Ron Conway, Joi Ito, Reid Hoffman, and Baseline Ventures.

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<![CDATA[Recently released EA Land virtual world already shuttered]]> In an attempt to rebrand The Sims Online, Electronic Arts renamed their massively multiplayer online doohickey EA Land. Now the site redirects to the project blog, which laments but does not explain the closure. [News.com]

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<![CDATA[Ad sales VP leaves Yahoo for Electronic Arts]]> Elizabeth HarzYahoo VP Elizabeth Harz has left the company to become SVP of global ad sales at videogame publisher Electronic Arts. At Yahoo, she was most recently in charge of poring over marketing data — the kind of background that will be invaluable to EA as the company develops advertising strategies for casual games on sites like Pogo.com and mobile devices. And in the wake of Jerry Yang's announcement that the new AMP brand advertising platform will be ready to go by the third quarter, it sounds like more bad news for Yahoo. Even if the code works, you need people to bring in customers.

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<![CDATA[Welcome back, now go buy Take-Two]]> Electronic Arts has hired Eric Brown, an EA veteran, back from McAfee as CFO to replace the abruptly departing Warren Jenson. This comes as the company is trying to buy rival Take-Two Interactive. [WSJ]

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