EA CEO warns against prioritizing profits

Posted Oct 21, 2008 at 10:42PM by QJ Staff Listed in: Tags: Electronic Arts, John Riccitiello
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EA games - Image 1Although one might think him a touch hypocritical for saying so, EA CEO John Riccitiello spoke to Gamasutra about how prioritizing profits should be avoided by game publishers.

This is something he admitted that EA had to struggle with in recent years but is working to correct such self-destructive behavior. It would otherwise be “the beginning of the end,” he explained.

The problem is that the quickest way to increase profits is to cut research and development so that a given company can see a nice spike in their numbers within a 24-month period. Such increased profitability will naturally improve their image in the financial market so there is an obvious attraction to this route that Riccitiello describes as “a drug in and of itself.”

A lot of  companies fall prey to relentlessly pursuing profitability that the quality of their products starts to suffer and in the end, so does their profitability. “Companies go through cycles where they are on the drug of profits,” Riccitiello said. “I've not only seen it, I've experienced it.”



Related EA Articles:


Via Gamasutra

 
 
 

Comments [refresh]

by kupomogli - 2008-10-21 19:26
uh.. yeah.

EA's one to talk. It's obvious that EA is saying all this from experience.

by kittykat - 2008-10-21 19:53
Wait a second...

An EA CEO is speaking out against making profit the main focus in game development...



Does this mean we will see no more crappy games meant to profit off the name of a movie that people enjoy in theatres?



Or does this mean that after releasing a PC game EA will release the same game with all features on console systems?



Wait a second...perhaps EA has decided that they will stop cranking out sequels to sports games and release something original more often?



Or is EA thinking of donating all those profits they earned in the past through advertising in games (and at times trying to make doing so more mainstream) to charity?





Put your money where your mouth is and change the way things work in EA, or do not bother saying things like that, big shot CEO.



(and yes, I meant for that to be offensive. I hope it only offends the corporation in question and nobody else)

by WiiRolled - 2008-10-21 20:57
Uhm...Wait-

Did I get this right?

He of all people says a publisher should not prioritize profit?

EA can s*ck my balls lol

by BloodMachine - 2008-10-21 23:11
Heh

While I agree whole heartedly, he does admit EA has had troubles with this. And the new NFS game cycle (spending 24 months on a game rather than 12) suggests they've FINALLY picked up where they went wrong.

No doubt being over taken by PES 2009 opened their eyes a bit.

Thank god for this.

by Hekynn - 2008-10-22 04:43
hmm

Hey atleast they make good games for people to play

by neomew - 2008-10-22 08:36
How EA is defined:

EA: An evil corporation set on buying every video game company till there is nothing left.



Example: EA will buy your family and EAt your children

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