14 DAY TRIAL // Video game publisher Electronic Arts announces that it has plans to eliminate all underperforming franchises as it transitions to the next generation of home consoles in order to make sure that it does not spend money on projects that will not succeed.
Blake J. Jorgensen, the chief financial officer of the company, tells investors as quoted by SeekingAlpha that, “we've given guidance over the last year that we were spending roughly $100 million a year on next-gen development.”
He adds, “we've gone through a very detailed process to eliminate expenses associated with products that either aren't growing or aren't large enough or aren't on platforms that we feel are long-term viable in the industry.”
The recent financial results from the company suggest that franchises like Medal of Honor and Dead Space might be on their way out, with studios reorienting themselves to work on other titles, including the newly acquired Star Wars universe.