Shares in Electronic Arts rose 12 percent to $17.36 in morning trading, following management's announcement of substantial cost-cutting measures.

EA said Tuesday that it would now be cutting 1,100 jobs, 10 percent more than previously announced. Management also has plans to shut down 12 facilities and narrow its product portfolio.

The publisher, which also lowered its fiscal 2009 outlook, announced a Q3 net loss of $641 million, up from a $33 million loss a year ago. Revenue was $1.65 billion, up from $1.5 billion for the comparable quarter a year prior.

EA also pushed major titles into the next fiscal year: Dragon Age and The Sims 3 for PC and The Godfather 2.

In addition, EA reiterated that it would be directing resources towards the market-leading Nintendo Wii with both core and casual games.