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EA To Cut More Jobs, Games

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The sluggish economy is pushing Electronic Arts to grab the hatchet and remove any underperforming extremities.

Disappointing holiday game sales are yet again putting EA in a position to embark on another round of job cuts. The videogame publisher anticipates net revenues for the 2009 fiscal year will fall below previous expectations. As a result, EA will be scaling back the number of releases in the coming year. Staffing and infrastructure will be reduced accordingly.

“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,” said EA CEO John Riccitiello. “Given this performance and the uncertain economic environment, we are taking steps to reduce our cost structure and improve the profitability of our business.”

This fall, the publisher already laid off 500 to 600 employees, and there’s no telling how many folks will be let go as a result of the impending cutbacks or what games will be put on the chopping block. While EA didn’t indicate which of its holiday titles were underperforming sales-wise, Riccitiello did say he was pleased with Dead Space, Warhammer Online: Age of Reckoning, Spore, and Mirror’s Edge – signifying sequels will likely see the light of day. Despite cuts, EA is also planning several new titles in the coming year.

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