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EA Reorganizes Into Four Labels

Reuters is reporting that the mega-publisher EA will soon be reorganized into four separate labels underneath the company's umbrella. The four groups will be known as EA Games, EA Sports, EA Casual Entertainment, and a label simply called 'The Sims'. All four organizations will be supported by two additional EA groups, which will handle publishing and 'development services'. "The changes, based on the success of a pilot program that placed games based on "The Sims" franchise into their own unit, mean it will require fewer executives to sign off on new games or to approve launching an existing game on a different platform or in a different regions. "We ran an organizational experiment and it was pretty damn successful. The Sims grew aggressively," Frank Gibeau, head of the new EA Games unit said."

24 of 97 comments (clear)

  1. hmm by User+956 · · Score: 4, Funny

    The four groups will be known as EA Games, EA Sports, EA Casual Entertainment, and a label simply called 'The Sims'.

    That's odd. I would have expected the fourth one to be "Madden"

    --
    The theory of relativity doesn't work right in Arkansas.
    1. Re:hmm by secretwhistle · · Score: 5, Funny

      I would have thought EA Sports would just be named "Roster Update."

    2. Re:hmm by Smight · · Score: 2, Funny

      What about nerd sports like chess, poker, and robot battling? "A sport is a competitive activity where skill, ability , and strategy determine the victor." football could arguably not qualify

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      IOU one (1) signature
    3. Re:hmm by Subacultcha · · Score: 2, Funny

      Actually, I would have expected "Pestilence", "War", "Famine", and "Death", but I can see how the 4th one could be "The Sims".

    4. Re:hmm by jZnat · · Score: 2, Interesting

      If EA still had competition from developers like Sega in the football games subgenre, this wouldn't be necessarily true. However, since they got an exclusive deal with the NFL over the names of teams, players, stadiums, stats, etc., they don't have to do anything but update the roster really. Although, Madden '07 for Wii, I hear, was actually innovative and fun.

      --
      'Yes, firefox is indeed greater than women. Can women block pops up for you? No. Can Firefox show you naked women? Yes.'
  2. Speedy? by toleraen · · Score: 4, Funny

    "The changes, based on the success of a pilot program that placed games based on "The Sims" franchise into their own unit, mean it will require fewer executives to sign off on new games or to approve launching an existing game on a different platform or in a different regions.

    I guess its the bureaucracy that's been holding them back from releasing madden twice a year then? I'm definitely looking forward to madden 07.5 now!

    1. Re:Speedy? by sglider · · Score: 5, Insightful

      You aren't kidding. What they don't realize is that what works for Madden and The Sims (releasing an expansion or 'booster' pack every 3 months) doesn't work for PC Multiplayer games like the Battlefield Series.

      Battlefield 2 sold well, but they tried to capitalize on that by releasing BF2:Special Forces, and Armored Fury and Euro Forces in quick succession, and were rebuffed by the community.

      They then didn't learn from their mistake by releasing Battlefield 2142 a scant year after BF2 came out, and it only surpassed BF2 in hours played the first week. Now, it barely registers on the top ten for Xfire, and doesn't hold a good spot on Gamespy's Server list either.

      --
      War isn't about who's right. It's about who's left.
  3. How is this new? by Myria · · Score: 4, Insightful

    The changes, based on the success of a pilot program that placed games based on "The Sims" franchise into their own unit

    Wasn't that "pilot program" called Maxis?
    --
    "Screw Sun, cross-platform will never work. Let's move on and steal the Java language." - Visual J++ Product Manager
    1. Re:How is this new? by Cheapy · · Score: 2, Informative

      My favorite Maxis game? Streets of Sim City. All the fun of building a city without the whole "appeasing the citizens", "ensuring economic prosperity", or "keeping people alive" distractions.

      Plus it had cars with rocket launchers. How cool was that?

      Realistic? No. Educational? Maybe for learning how to blow things up. Allowing a 10 year old me to play a game with explosions all while being able to say that it was SimCity? Oh yeah.

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      Would you kindly mod me +1 insightful?
  4. The Sims label by Bongo+Bill · · Score: 4, Insightful

    Would that just be, um, Maxis?

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    ...but is it art?
  5. They offered me the chance to run EA Casual... by DrunkenTerror · · Score: 3, Funny

    ...but I just kinda said, "Fuck it," ya know?

  6. Easy. by moosesocks · · Score: 2, Insightful

    Easy.

    Spin your "studios" off, and back into independent units with a good degree of autonomy.

    Maxis and Westwood were both fantastic on their own, and produced a whole bunch of innovative and fun games. Since being absorbed into the EA empire, they haven't produced a single new idea (not to mention that C&C Generals was outright offensive)

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    -- If you try to fail and succeed, which have you done? - Uli's moose
    1. Re:Easy. by Anonymous Coward · · Score: 2, Informative

      i freakin love the offensive-ness of C&C Generals... seriously, "I VEEL MAKE THE SACRAFICE" is one of the greatest audio clips... ever.

      some other great ones:
      "I need some shoes."
      "Please, don't huuurt me!"
      "Can i have some shoes?"

      politically incorrect middle eastern terrorists. gatta love it.

  7. Mislabelled by GFree · · Score: 3, Funny

    The four groups will be known as EA Games, EA Sports, EA Casual Entertainment, and a label simply called 'The Sims'.

    Those groups don't representative EA well enough I think. They probably should be renamed as:

    The four groups will be known as EA Shit, EA Bullshit, EA Thisissoshit, and a label simply called 'The Sims'.
  8. does this really change anything? by joystickgenie · · Score: 4, Insightful

    Other then in internal upper management command chains does this really change anything? EA has pretty much already had these separations in place with few exceptions.

    EA Games: EA Redwood Shores and EA LA
    EA Sports: EA Canada, EA Tiburon, EA Chicago and EA UK
    EA Casual Entertainment: Pogo and EA Mobil
    The Sims: Maxis

    Really what is the difference between what is going no now and what has been going on for years?

  9. 'The Sims' Division? by wbren · · Score: 2, Insightful

    I'd hate to work for that division, unless EA promised to reallocate me within another division when The Sims loses popularity. Talk about putting all your eggs in one basket... People inevitably lose interest in a game over time (even World of Warcraft perhaps).

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    -William Brendel
  10. Bullshit management by Bombula · · Score: 4, Insightful
    This kind of nonsense from corporations is very revealing. In massive conglomerates, one corporation (i.e.: PepsiCo) may own a subsidiary unit quite different from its original flagship enterprise (i.e.: Taco Bell vs Pepsi). In these situations of acquisition, the challenge is to line up the hierarchy of management with the hierarchy of ownership. It's a challenge, but effective organizations usually manage to get the entire show running as a single, albeit complex and multifaceted, business.

    To take an existing company and split it up into smaller sections - whether spin-offs, labels, or whatever - is basically a bullshit move from the standpoint of management. If it's branding we're talking about, that's one thing. Differentiating among brands to target different markets is fine. But to actually split an organization up into separate operating units and decentralize their organizational structure is the new-age crap of the late 80s and 90s that ended up being a giant fart in the spacesuit of business.

    Properly managed, a single organization can be of any size and any complexity. Good management will implement organizational decentralization as necessary, and as a corollary will also integrate management of operating units at appropriate decision-making levels to ensure optimum efficiency (management-speak would insert the bullshit word 'synergies' here).

    Long story short, if EA was being managed properly in the first place, it wouldn't need to be split apart. The fact that its operating units can't be creative unless they pretend they're separate companies is a sign that the management has no idea what it's doing.

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    A-Bomb
    1. Re:Bullshit management by servognome · · Score: 2, Insightful

      Properly managed, a single organization can be of any size and any complexity. Good management will implement organizational decentralization as necessary, and as a corollary will also integrate management of operating units at appropriate decision-making levels to ensure optimum efficiency (management-speak would insert the bullshit word 'synergies' here).
      It could happen, but it is very difficult to manage. Sometimes 'synergy' turns out to really be a handicap for individual business units. It is difficult to justify to stockholders decisions by individual business units that directly work against other business units. For example, people are advocating Sony electronics and Sony music be split, since the electronics business unit is hurt by DRM and other restrictions to try and protect Sony music. They could pretend to be different companies, but if for some reason the music unit starts to slip (even if there are gains in electronics), shareholders will ask what the electronics unit is doing to help.

      There are also regulatory, tax, and other reasons that it might be advantageous to split a company up.
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    2. Re:Bullshit management by Bombula · · Score: 2, Insightful
      Your points are well made. Just some additions to them: the two points - stockholders losing sight of the big picture when evaluating individual business units, and tax and regulatory benefits of decentralization - are related via the accounting department through what's called 'transfer pricing'. Let me explain by way of example:

      Would you buy multivitamins from China at $850 a pound, plastic buckets from the Czech Republic for $973 each, tissues from China at $1,874 a pound, a cotton dishtowel from Pakistan for $154, and tweezers from Japan at $4,896 each? Would you sell multivitamins to Finland at 61 cents a pound, bus and truck tires to Britain for $11.74 each, color video monitors to Pakistan for $21.90, missile and rocket launchers to Israel for $52.03 and prefabricated buildings to Trinidad for $1.20 a unit? If you are a large conglomerate with different operating units, the answer is yes.

      The reason why is that by overpaying on imports from a subsidiary and underpaying on exports to them, a conglomerate can buy from and sell to itself in such a way that it shows losses in a US unit, which offsets taxes, but compensatory profit in a foreign unit based in a tax-haven country.

      This gets to the core of both of your points because it shows why shareholders are foolish to look at individual operating units without looking at the context of the whole organization, when it's the bottom line that counts, and that it's foolish to operate units completely independently from one another. It also shows how taxes can be gamed no matter what the regulations may be (in 2001, for example, corporations reported $154 billion more profit to their shareholders in annual reports than they reported to the IRS in their SEC filings, leading to over $50 billion in lost tax revenue).

      Lastly, bear in mind that while there are potential savings from decentralizing operations into separate units, there are also additional costs - like having to have a whole new admin department for each unit.

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      A-Bomb
  11. Splitup by exec qualifications by Animats · · Score: 3, Informative

    This is really a split based on the needed qualifications of the divisional executives:

    • "Games" division - needs an actual game producer in charge. Most R&D in this unit.
    • "Sports" division - needs a jock, who hires other jocks, to make games jocks like. Ongoing updates and upgrades, but not much innovation needed. Technology comes from games division and outside suppliers.
    • "Casual" division - needs a sales type good at sucking up to cell phone companies. For mobile games, the market is the cell phone company, not the end user.
    • "Sims" division - whoever was running that project at Maxis.
  12. Re:fun stat du jour by tepples · · Score: 2, Informative

    You're probably right. I picked up "The Sims 2" a while ago. Given its popularity, I assumed it must be a pretty good game. To be honest, I can't figure out how to play it. I don't even know what the object is. I'll probably try again, at some point, but not before I check out a few strategy guides.

    I wonder if the "Sim City" stuff will be in the same group.

    Actually, no. Some digital sandboxes still have goals that players regard as the main mission:
    • SimCity Classic: put 500,000 people into one town and beat all scenarios. (The manual for the Super NES version admitted that this was the mission.)
    • Harvest Moon: get a positive evaluation of your farm.
    • Animal Crossing: pay off your house and all expansions (1.4 million bells on GCN, 3.5 million bells on DS) and get a perfect town (about 13 trees per acre).
    The Sims, on the other hand...
  13. Hows about... by goodenoughnickname · · Score: 4, Funny

    EA Pestilence, EA War, EA Famine, and EA Death

  14. Bugs division by El-Wrongo · · Score: 2, Funny

    TFA fails to mention that the reason for this is that the EA Bugs division was disbanded because they found out that instead of spending time carefully putting CTDs inn and unbalancing gameplay, they could simplify the whole process of bug development by just corrupting the EXE file so every time on startup it gives out a BSOD.

  15. Re:I don't care by moderatorrater · · Score: 2, Interesting

    I'm actually hoping that they make "The Sims" division stand for all Sim games, not just the one they've milked to death. That would open up a lot of possibilities. SimFarm,while a horrible game overall, was a lot of fun at times; a decent update could work well. SimCity, SimEarth, SimAnt, etc. could all do well if they would focus resources on them and give them a chance. Then open up new ones, like SimMachine, and I could see things going really, really well for that division.