EA is to cut the number of packaged games it releases by 20 per cent next year as it looks to grow its market share in the digital space.

Speaking at the Reuters Global Media Summit in New York on Tuesday, EA CEO John Riccitiello said he expects the digital games market to account for half of the industry in 2010.

Last year EA launched more than 60 packaged games, a figure that has fallen to 50 in 2009. Next year it's targeting 40 packaged game releases.

"Thirty wouldn't shock me at some point in the future," Riccitiello said. "We're the world's leader in packaged goods games, we make more of them than anybody. We're not suggesting that business is going away ... (but) there's this other thing that's growing."

Speaking of the company’s digital operations, Riccitiello added: "It's our goal for that business to be as important as, and over time maybe more important than, our packaged goods business.”

Last month EA acquired leading social gaming company Playfish for over $275 million. The deal was announced as the publisher posted a $391 million net loss for the three months ended September 30 and revealed plans to cut 1,500 jobs.