I am going to make you an offer...
EA CEO, John Riccitiello, has been preparing his staff for 'cost control' - yes, we know this means 'cutting', you know this means 'cutting', John knows it means 'cutting' - but let's none of us say the word. Of course, he's been doing this in such a way as to make everybody believe that all is well. Until, that is, the punch is thrown.
The Wall Street Journal has printed a memo from Riccitiello to EA employees. The key phrase is:
"We are now five months into the fiscal year and the most important period of the year is still in front of us. Trend lines for the industry present a challenge, but our strategy and execution give me confidence. From here, our focus is on four priorities: great product launches, succeeding on the Nintendo Wii, continued expansion of our direct-to-consumer business, and cost control.
"In any economy, this is the path to success."
We're not sure quite how succeeding with the Nintendo Wii would work in, for example, a third-world agrarian economy, but we'll let John get away with that.
Why the need for cost 'control'? After all, says JR, "Our two biggest titles in the quarter, The Sims 3 and EA SPORTS Active, broke through and beat our own high expectations. And, just as important, our total direct-to-consumer businesses were up 38% in our first quarter."
He also notes that, "Last month at the Games Convention in Germany, EA put on a dazzling display of industry leadership."
However, "August sales of Madden NFL 10 are down with that trend. It is discouraging that one of our highest-rated and best-marketed Madden titles in years is facing strong headwinds."
By "strong headwinds" JR means, "the economy is still screwed" but that doesn't sound as poetic or obfuscatory. That said, John is "hopeful that the Madden sales trend will strengthen as more consumers go to retail to pick up their lower-priced consoles." He means "we hope Madden sells more".
Either way, remember, 'cost control' is essential.
The Wall Street Journal has printed a memo from Riccitiello to EA employees. The key phrase is:
"We are now five months into the fiscal year and the most important period of the year is still in front of us. Trend lines for the industry present a challenge, but our strategy and execution give me confidence. From here, our focus is on four priorities: great product launches, succeeding on the Nintendo Wii, continued expansion of our direct-to-consumer business, and cost control.
"In any economy, this is the path to success."
We're not sure quite how succeeding with the Nintendo Wii would work in, for example, a third-world agrarian economy, but we'll let John get away with that.
Why the need for cost 'control'? After all, says JR, "Our two biggest titles in the quarter, The Sims 3 and EA SPORTS Active, broke through and beat our own high expectations. And, just as important, our total direct-to-consumer businesses were up 38% in our first quarter."
He also notes that, "Last month at the Games Convention in Germany, EA put on a dazzling display of industry leadership."
However, "August sales of Madden NFL 10 are down with that trend. It is discouraging that one of our highest-rated and best-marketed Madden titles in years is facing strong headwinds."
By "strong headwinds" JR means, "the economy is still screwed" but that doesn't sound as poetic or obfuscatory. That said, John is "hopeful that the Madden sales trend will strengthen as more consumers go to retail to pick up their lower-priced consoles." He means "we hope Madden sells more".
Either way, remember, 'cost control' is essential.
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