EA Insists on Taking Risks

EA Insists on Taking Risks

EA Insists on Taking Risks

EA will pursue the development of new IP and continue to take risks with original titles in the years ahead.

That was the sentiment of the company’s vice president of communications, Jeff Brown. Speaking to news site Kotaku, Brown insisted that EA’s broad game portfolio is a key factor in the company’s push for fresh content.

“We can take risks because we are pretty sure our blockbusters are going to generate good revenue that allow us some cushion,” he said. “So we’re not living hand to mouth.”

Brown’s outlook mirrors that of the EA CEO John Riccitiello, who last week outlined a wide strategy to put an end to the publisher’s haemorrhaging cash flow. After revealing the firm’s third quarter results – which had “?significantly missed its numbers?” ?by some? ?$150? ?million – Riccitiello stated that the group would continue to mix new IP with core franchises.

Brown adds that the sheer size of EA allows it to afford taking a risk. “At any given moment, in an operation as big as EA worldwide, there are a whole lot of people with a whole lot of ideas and they are given a bit of money to flesh them out," Brown said. "Some will work, some won’t. There will be projects that will be killed no matter the economy."

Meanwhile, Wedbush Morgan Securities analyst Michael Pachter told Kotaku quite the opposite, that developers “can’t afford to take risks. If you take too many in a row you end up with no money and no franchises. Even EA got in trouble last year doing way too much.”

He added: “The right idea is to have your core franchises and then take measured risks.”

Source: Kotaku.