EA cancels 12 unannounced projects

Will reduce the number of blockbuster titles it releases each year.

EA has outlined significant business changes which will result in the lay off of 1500 staff by the end of March 2010 and a reduction in the number of high profile game releases.

"Laying off employees and closing facilities is never pleasant," explained EA CEO John Riccitiello. "We have a lot of compassion for those impacted but these cuts are essential for transforming our company. Our operating expenses will be reduced by at least USD 100 million compared to our current run rate."

Chief financial offer John Brown confirmed that 900 positions are to be cut from game development, 500 jobs in publishing and 100 at corporate level.

"We think the cuts we have made are very, very aggressive. We've cut teams, we've cut corporate, we've cut overhead, we've cut publishing but not to the point of hampering ourselves," added Riccitiello.

It's believed that Black Box, Redwood Shores, Tiburon and Mythic will all be hit and the publisher has stated that several facilities will be closed.

In addition to the staff lay offs, EA has said it will reduce its portfolio of titles, suggesting 12 unannounced projects have been cancelled.

"Electronic Arts has a core slate of games label and sports franchises that we will iterate on a either annual or bi-annual basis. And I think you know what those major titles are - all of them are selling or have sold in their most recent edition 2 million units or more," explained Riccitiello.

In addition to these multi-million selling titles, Riccitiello said that it has The Sims and Hasbro titles, but after that the rest of its slate is vulnerable.

"… frankly anything that doesn't measure up to looking like it can pencil out to be in very high profit contributor and high unit seller got cut from our title slate from this point going forward."

Via GamesIndustry.biz