Electronic Arts Admits Disappointing Holiday Sales; Looks to Cut Games, Staff

Electronic Arts today announced that "lower than expected sales across North America and Europe" will result in lower-than-expected earnings for its current fiscal year.

The extent of the lowering was not revealed, with the publisher noting that it does not anticipate revealing "updated financial guidance" until the end of FY Q3 in February.

The company stressed that it will continue with recent cost-saving measures, which now include a "reduction of its product portfolio" for the 2010 fiscal year and less staff.

"We are disappointed that our holiday slate is not meeting our sales expectations," said EA CEO John Riccitiello, noting that the company "saw significant improvement in the overall quality of our key products this year" and will remain committed to quality. "We will be launching several new titles and online games in fiscal 2010," he added.

Analyst Colin Sebastian predicted the move yesterday, saying that sluggish sales of Need for Speed Undercover, Mirror's Edge and Rock Band 2 could lead to more cuts.