Although Apex Legends is still a bright place for EA, the game publisher and industry as a whole still face obstacles. Today, the EA confirmed that it allocated 350 people in marketing, publishing and other departments.
Kotaku received an email sent to employees of EA CEO Andrew Wilson, who said the main focus is to increase the quality of his games. Part of it is "ramping down" the company's presence in Japan and Russia. Famitsu later confirmed that the Japan office has been closed completely.
Of the 9,000 global employees at EA, 350 redundancies represent 3.8 percent of EA's workforce.
EA is not alone. The publisher's biggest competitor, Activision Blizzard, lost nearly 800 employees, about 8 percent of its workforce in February.
"We have a vision of being the world's largest gaming company," wrote Wilson in an email that was obtained and published by Kotaku. "If we are honest with ourselves, we are not there right now. We work with our games, our player's relationships and our business. Across the business, teams are already working to ensure we create high quality games and live games. services, when multiple platforms with our content and subscriptions improve our Frostbite tools, focus our networks and cloud gaming priorities and close the gap between us and our player community. "
EA sent Kotaku the following statement:
Today we took some important steps as a company to meet our challenges and prepare for the opportunities ahead. When we look across a changing world around us, it is clear that we need to change it. We make conscious steps to better deliver on our commitments, refine our organization and meet our stakeholders' needs. As part of this, we have made changes to our marketing and publishing organization, our operations team, and we are strengthening our present presence in Japan and Russia as we focus on different ways to serve our players in these markets. In addition to the organizational changes, we are deeply focused on increasing the quality of our games and services. Big games will continue to be at the heart of everything we do, and we think differently about how we can marvel and inspire our players.
This is a difficult day. The changes we make today will affect 350 roles in our 9,000-person company. These are important but very difficult decisions, and we don't take them easily. We are friends and colleagues at EA, we appreciate and appreciate everyone's contribution, and we do everything we can to ensure that we see our people helping them throughout this time to find their next opportunity. This is our top priority.
Gaming continues to grow, and titles like Fortnite and EA's own Apex Legends show there's plenty of money to make. In fact, Blizzard Activision announced CEO record earnings in 201
This potential has to do with a shift from a model that generates revenue once for a single title to something more akin to a subscription service. Purchases in the app and game subscriptions account for more and more gaming publishers' revenue. The Financial Times reported in 2017 that 10-year sales of packaged home console software accounted for 64 percent of the global gaming market. That figure dropped to 30 percent as purchases of purchases and subscriptions continue to grow in popularity as seen with games like Fortnite and Apex Legends.
This more stored revenue structure creates something sticky with consumers, but also runs the risk of alienating them by constantly asking for more money, especially with a game that is not free to play.
We have reached EA and will update if / when we know more.