John Madden, the former NFL coach and commentator who lent his name to one of the company’s most successful franchises, “Madden NFL.” In a move that has shocked the gaming community, Electronic Arts (EA) has announced that it will let go of hundreds of employees. While EA’s layoff decision has raised questions about the future of the company and the gaming industry. The news has sparked a lot of negative sentiment around the Madden franchise, which is facing a new competitor in the arena with Maximum Football’s free-to-play model.
The popular video game franchise “John Madden Football” from Electronic Arts, was first released in 1988. Madden’s legacy extends beyond his coaching and broadcasting career to the impact he had on the world of video games, revolutionizing the sports gaming industry.
EA reports significant gross profit amid layoff announcement
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Electronic Arts (EA) garnered attention when it revealed plans to lay off over 700 employees, comprising roughly 6% of its global workforce of approximately 12,900 individuals. Despite being a prominent video game publisher with popular titles like “Madden,” the company’s CEO, Andrew Wilson, announced on Wednesday.
OH NO: Electronic Arts, the creator of ‘Madden,’ will lay off more than 700 employees, 6% of the video game publisher’s worldwide workforce of roughly 12,900, CEO Andrew Wilson said on Wednesday.
🙏🙏🙏
The mass dismissals come despite a $1.3 billion gross profit that EA… pic.twitter.com/Wa84fElcIH
— MLFootball (@_MLFootball) March 31, 2023
In January, EA reported a gross profit of $1.3 billion for its most recent fiscal quarter, two years after John Madden’s death, and shared the news with investors. This seems to suggest that the layoff was not because of financial difficulties but a strategic decision by the company to streamline its operations and focus on specific areas of the business.
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Wilson stated the layoffs were part of a pivot away from projects that do not contribute to EA’s strategy, and that the company was looking to restructure some of its teams and review its real estate footprint. Wilson promised to bring more exciting games and build existing communities.
The company had experienced particular success with FIFA 21, NHL 23, and Need for Speed Unbound.
Madden NFL 24: A make-or-break moment for EA
Madden NFL releases cover athletes- Lamar Jackson stars in 21, Brady & Mahomes in 22, Madden himself in 23, and anticipation builds for 24.
EA Sports‘ management is aware of the importance of the upcoming “Madden NFL 24“ game to the future of the company, as the Insider Gaming report considers it a “make or break“ moment for the franchise.
REMINDER: According to Insider Gaming, EA Sports’ is considering “Madden NFL 24” a “make or break” game for the 35-year-old franchise. Here’s how one source described it to Insider Gaming:
“THE DISCOUNT FOR PLAYERS WHO LOST THEIR FRANCHISE IS ONLY THE BEGINNING. EA HAS BIG PLANS…
— MLFootball (@_MLFootball) March 31, 2023
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The report suggests that the management team is looking to change the franchise, and if the upcoming game encounters similar issues as the most recent “Madden 23” game, there will be a lot of change among the game’s leadership.
This could explain why EA is streamlining its operations and focusing on specific areas of the business, including the development of the upcoming “Madden NFL 24” game, to ensure its success and secure the future of the franchise.
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However, it is always unfortunate when people lose their jobs, and we can only hope that the affected employees can find new employment opportunities soon.
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