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EA CEO's Departure Might Be Good For the Company

Nerval's Lobster writes "Electronic Arts CEO John Riccitiello might have resigned in the wake of the company's disastrous SimCity launch, but his departure might not be a bad thing for EA as a company. On Glassdoor, his 59 percent rating was 9 points below the average. One outside recruiter says Riccitiello's taken the fun out of the game maker's culture. 'They've never had a problem getting good talent and that's not likely to change,' says the recruiter, who requested anonymity because of his business dealings with the company. 'But, they've had problems getting great talent and that's not likely to change.' Let this be a lesson to gaming executives everywhere: if you're going to launch a popular title that needs to be constantly connected to online servers, make sure you have enough backend infrastructure in place to actually handle the load." A related article suggests EA needs to worry less about piracy and more about the company's apathy and legitimate customers who demanded a refund.

18 of 84 comments (clear)

  1. definition of "needs" by Anonymous Coward · · Score: 3, Insightful

    >>if you're going to launch a popular title that needs to be constantly connected to online servers

    It all comes down to "needs"

  2. Online only lies by Anonymous Coward · · Score: 2, Insightful

    The reason they gave for being online was that they were running parts of the simulation your computer couldn't handle. That was a lie. They aren't simulating anything. People go to the nearest open job or house. Pathfinding is broken. It has nothing to do with their "infrastructure" and everything to do with them trying to sell you an unfinished product with no demo under the guise of DRM.

    1. Re:Online only lies by chromas · · Score: 2

      The reason they gave for being online was that they were running parts of the simulation your computer couldn't handle. That was a lie.

      Well, duh. If that was the case then they'd need compute power greater than that of all the expected thousands of users combined (well, minus whatever processing can be shared).

  3. I'm a developer in Vancouver... by ADRA · · Score: 4, Interesting

    and I would never work for EA. They're a sweat shop. I realized earlier on that I wasn't meant to be a game developer, but I've know several friends that have bumped through the EA treadmill who've left burnt out and miserable.

    This may very well be the life of a most game devs, but I don't feel like 60 hour weeks is conducive to a healthy long term career with a company.

    As a user, since they've introduced Origin, I've bought one game (ME3) reluctantly, and quite frankly the EA label is a LARGE detriment to my decision for buying games. I was in fact intrigued at buying Sim City for $40 from Amazon before launch, but I was a little Leary about it. Now I think Ubisoft's a little rotten with this whole push for uPlay, but at least they're playing ball with Steam if nothing else.

    All that said, I'm VERY glad that the Indy scene seems to be picking up steam both in volume and quality. I'm sure Kickstarter and other such initiatives are helping lead us to a hopefully more diverse and healthy product ecosystem.

    --
    Bye!
    1. Re:I'm a developer in Vancouver... by SpaceMonkies · · Score: 5, Interesting

      Back in 2004 Electronic Arts was criticized for employees working extraordinarily long hours—up to 100 hours per week—and not just at "crunch" times leading up to the scheduled releases of products. The publication of the EA Spouse blog, with criticisms such as "The current mandatory hours are 9 a.m. to 10 p.m.—seven days a week—with the occasional Saturday evening off for good behavior (at 6:30 p.m.)". The company has since settled a class action lawsuit brought by game artists to compensate for unpaid overtime. The class was awarded US$15.6 million. As a result, many of the lower-level developers (artists, programmers, producers, and designers) are now working at an hourly rate. A similar suit brought by programmers was settled for US$14.9 million.

    2. Re:I'm a developer in Vancouver... by Anonymous Coward · · Score: 4, Insightful

      Any company where developers work those kinds of hours regularly is doing it wrong. I would never consider a job where I constantly work 60 hours per week a "comfortable gig". If your project planning is done properly and resources allocated accordingly, a normal work week should suffice. Of course there are companies where that planning fails at some level, but if that happens regularly those companies aren't likely to be able to stay in business anyway.

    3. Re:I'm a developer in Vancouver... by barc0001 · · Score: 3, Insightful

      60 hours a week is NOT a "comfortable gig" unless you're fresh out of uni with no appreciable outside life. I did that for almost 10 years and looking back on it can't believe I did it as long as I did. There are plenty of tech companies around that "get it" and don't squeeze every last waking minute out of their people. One thing I definitely noticed was that the longer you make people work, the less work/hour they did since they were planning to be there for 12 hours a day anyway. Or if they were being pushed hard during those 12 hours, toward the end of the week they started to make costly mistakes that took hours to find and correct. In both cases the company was making minimal gains at large personal cost to the employees.

    4. Re:I'm a developer in Vancouver... by JSombra · · Score: 2

      Most game developers expect that around crunch time, problem with EA is it was "crunch time" 24-7 365 days a year. That's not due to nature of industry or even bad planning, that's planning to intentionally screw over staff for profit (especially as they generally avoided paying OT as well)

    5. Re:I'm a developer in Vancouver... by mark-t · · Score: 2

      BC Employment Standards Law, section 39. "Despite any provision of this Part, an employer must not require or directly or indirectly allow an employee to work excessive hours which are detrimental to the employee's health or safety". This even includes so-called "high technology professionals".

  4. Always on, doesn't need to be ClientServer by GoodNewsJimDotCom · · Score: 2

    I hate giving the bad guys ideas, but P2P really can reduce your server load by a great deal. Essentially, use other random players to simulate a server for you, or just check for hacks and keep your state. Then when the game is shutdown, if you don't do an eloquent shutdown yourself, the other players check their data against each other to make sure they're not hackers, then they send your state to the main server.

    It sounds like these guys tried to use an always on clientserver architecture which works for World of Warcraft, but the costs of which aren't sustainable for a game people might want to play 5-10 years down the road. Maybe EA just banked on the "fly by night" sim city where they take your money, then laugh in 2 years when people get cut off like they do with their EA sports games.

  5. come on guys can't we remove the BS before posting by bloodhawk · · Score: 4, Interesting

    "if you're going to launch a popular title that needs to be constantly connected to online servers"

    Seriously who lets this shit past review. While I would love EA to be suffering and the CEO to be ousted because of the DRM BS it simply isn't true. The CEO has been underperforming for some time, the companies shares are down as is its financial performance and it has little to do with SimCity.

  6. I wouldn't get my hopes up... by Lendrick · · Score: 5, Insightful

    Given EA's corporate culture, it's entirely possible that the CEO is just a fall guy. The investors want blood, and somebody has to get fired. Unless their next CEO is someone who loves gaming things are just going to stay the same. The trouble with media companies in general is that their upper management seems to think differently from normal people; that is, they think in terms of monetizing things as much as possible without regard to how their customers might feel about that in the long term.

    EA's nasty DRM doesn't just prevent people from pirating their games, it also prevents customers from modding their games. Preventing mods allows them to make more money from "microtransactions", by selling silly little things that the player community could easily mod in if the game allowed it (and the value of these add-ons in terms of gameplay tends to be extremely poor). Conversely, you have companies like Bethesda who (while still copy protecting their games) allow people to create their own modifications, and then make money selling legitimate DLC with tens of hours of content each.

    Point is, I highly doubt it's just the CEO who's thinking that the best way to maximize profits is to sell a game and then nickel and dime people with stupid, worthless addons that take no effort to create. I'm guessing this is the attitude of the board of directors and upper management as well, and just replacing one dude isn't going to fix that.

  7. Re:come on guys can't we remove the BS before post by vux984 · · Score: 2

    All true. Although if the sim city launch hadn't been botched so badly and instead had gone off brilliantly then perhaps the 'underperforming shares' trend might have reversed enough to preserve him.

  8. Re:come on guys can't we remove the BS before post by bloodhawk · · Score: 2

    It would take far far more than a single games success to turn them around. The problem with multi billion dollar companies is it is like a bus hurtling down a hill, SimCity if successful would be like downshifting gears. It may slow the decent but it would take a shit load more to stop the bus let alone turn it around.

  9. Yeah - more like by fyngyrz · · Score: 3, Funny

    if you're going to launch a popular title that PRETENDS to need to be constantly connected to online servers

    ...and you get caught

    Prepare for some incoming.

    --
    I've fallen off your lawn, and I can't get up.
  10. Re:Taking issue with one bit of the SuperMeatBoy p by CCarrot · · Score: 2

    You cannot prove even one lost sale because there is no evidence to state that any one person who pirated your game would have bought your game if piracy did not exist. From an accounting perspective itâ(TM)s speculative and a company cannot accurately determine loss or gain based on speculative accounting. You canâ(TM)t rely on revenue due to speculation, you canâ(TM)t build a company off of what will âoeprobablyâ happen. Watch âoeThe Smartest Guys in the Roomâ and see how that worked out for Enron.

    Okay, so Enron fudged it, but insurance companies in general are all about building a business speculating on what will "probably" happen. The things that let them keep going are in-depth risk analysis, diversification, and a fat cushion of capital. As long as they're right sufficiently more often than they're wrong, then they win overall.

    Not that this will help EA out any, but that bit bugged me.

    True that, but there's a huge difference between the accuracy of actuarial tables and that of marketing projections.

    The insurance companies have to have the best, verifiable numbers possible to get a reasonable idea of how much they will have to pay out in an average year, so they can size their premiums accordingly. If they just say fugit and place the premiums at a hundred times what they figure they might pay out in a year, people simply won't buy their product. Those projections have to be based on the best information the companies can find, with very little room for corporate delusions.

    Marketing and software development, on the other hand, is rife with self-delusion and speculation. With the advent of computers, that branch of salespeople now have a ready-made troll to beat when their overly optimistic estimates don't come close to the actuals...it must be them dam dirty pirates again, boss!

    The existence of a pirated copy of a game does not equate directly to a lost sale any more than tripling the insurance premiums equates directly to profit. Some people will go ahead and pay the cost, while many, many others will refuse at any cost. True, they shouldn't be looking to benefit from the product without paying some price, but the gaming company cannot seriously claim that everyone who tries a game for shits and giggles would have bought it if they couldn't play the pirated version. That's like Luis Vuitton claiming that everyone who buys a knock-off handbag would have bought a real handbag if the knockoff weren't available...yeah, fat chance of that! It's much more likely that the game would have simply faded into obscurity, because people weren't interested enough to buy it so nobody's talking about it...

    What the company does gain from piracy, however, is word of mouth marketing for their game. Pissing off their customers with DRM nightmares...well, that's also a form of word of mouth marketing.

    --
    "I love animals! Some are cute, others are tasty, what's not to like?" - Betsy Schroeder, Jeopardy contestant
  11. 59 percent rating? by manu0601 · · Score: 2

    On Glassdoor, his 59 percent rating was 9 points below the average

    Someone can explain me this sentence? Visiting glassdoor web site does not enlighten me about this 59% rating