Electronic Arts was just recently voted the worst company in America by the users at consumerist.com. They actually beat out Bank of America and Walmart. Well there woes haven’t stopped there as Monday it was reported that the gaming giant could lay off as many as 500 people.
Startup Grind’s Derek Anderson is reporting that Electronic Arts could lay off between 500-1000 people as soon as this week.
CNet is reporting that this news may not come as surprising considering EA recently had a horrible Q4 which is a crucial time for video game companies. Q4 includes holiday shopping which is supposed to be the best time of the year for video game sales. 2011, not so much for EA as they reported a $205 million dollar loss in Q4 2011.
Q3 2011 was actually worse as EA saw a $340 million dollar loss.
EA was harshly criticized for the lackluster ending of their game Mass Effect 3. Die hard gamers were expecting much more out of the franchise hit. CNet reports that EA was accused of disrespecting gamers for the horrible ending to Mass Effect 3. In fact it was so bad that EA announced that they would release a free “Extended Cut” for those that bought the original version.
To top all this off EA is under-performing with investors as well. Shares of EA stock are down 21.5% to $16.18 In the past five years EA stock has lost 70 percent of it’s value. They aren’t the super sports franchise company we used to know and love.