Electronic Arts plans layoffs

November 9, 2009 1:45:55 PM PST
Electronic Arts is reporting a loss for its fiscal second quarter in what's been a difficult year for the video game industry.

The company behind games such as "Madden NFL 10" also said Monday it is laying off 1,500 employees to focus on games that have higher profit margins.

The quarter's net loss was $391 million, or $1.21 a share, 26 percent wider than the loss a year earlier.

Electronic Arts Inc., which is based in Redwood City, Calif., says its net sales fell 12 percent to $788 million in the July-September period.

But sales including deferred revenue from online games grew 2 percent to $1.15 billion, inching past Wall Street's expectations.

Looking ahead, the company says it expects to report a net loss for the full fiscal year.

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